BNP Paribas launches first leveraged funds CDO

The leveraged funds group at French banking group BNP Paribas has launched its first collateralised debt obligation (CDO) fund focusing exclusively on Western European Leverage Buy-outs (LBOs), in a bid to strengthen its asset management business.

The new euro315 million fund, called Leveraged Finance Europe Capital I BV, was priced by BNP Paribas and Morgan Stanley, the US investment bank financial services firm. The fund will invest in a managed portfolio of senior and mezzanine LBO debt across Europe, and is aimed at a diversified set of institutional investors. LBO debts, including senior loans rated at the BB level, and mezzanine loans rated at B, are issued in connection with leveraged buy-out of companies. The fund will be a 13

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