BNP Paribas Asset Management has raised €540m, approximately $626m, for its first GP stakes strategy, Prime Capital Partners I.

The fund closed above its initial €400m target and represents the largest GP stakes vehicle raised by a European manager. 

Prime Capital Partners I will acquire minority equity stakes in mid-market firms across private equity, private credit, and infrastructure.

The strategy has already invested in several private capital managers, including Monroe Capital, Hayfin Capital Management, Latour Capital, and Rivage Investment.

The GP stakes strategy was developed by AXA IM Prime, formerly the private markets and hedge funds business of AXA Investment Managers. The unit became part of BNP Paribas Asset Management after the bank completed its acquisition of AXA Investment Managers last year.

GP stakes has become an increasingly prominent strategy within private markets. The model allows private capital firms to sell minority stakes in their management companies to raise capital, support new strategies, or expand into additional markets.

Large global managers including Blackstone, Goldman Sachs, and Blue Owl Capital have also built significant GP stakes businesses in recent years.

BNP Paribas Asset Management’s alternatives platform now manages about €300bn in assets across private markets strategies.

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