Press Release|Funds

KBRA Assigns a Rating to BNP Paribas' Participation in a Capital Call Facility to Five Arrows Principal Investments IV

19 Jan 2024   |   London


KBRA UK (KBRA) assigns a rating to BNP Paribas' ("BNPP") participation in a capital call facility in the form of a committed, secured facility (the “Facility”) to Five Arrows Principal Investments IV ("FAPI IV" or the "Fund"). The Facility is provided by a consortium of lenders including BNPP. The rating assigned was requested by BNPP as a participating lender in the transaction. Neither the Fund nor any of their associates have requested this report or the rating, and this report has not been prepared for or approved by any of them. KBRA has assigned an A rating and stable outlook to BNPP's €125 million commitment to the €625 million Facility.

The Lenders have a first priority security interest to the uncalled capital commitments of the Fund, including security over the right of the general partner to make capital calls. The Borrowing Base is divided into Qualifying Investors and Non-Qualifying Investors, with Qualifying Investors required to be approved by the Lenders in order to be included in such Borrowing Base and the uncalled commitments test. The Lenders’ recourse, however, is to all LPs of the Fund, including Non-Qualifying Investors. The uncalled commitments test requires the Funds to maintain uncalled commitments of 1.50x the amount of all Fund indebtedness, or 1.35x once 50% of the capital commitments have been called, such covenant being applicable to the Qualifying Investors only. To date, FAPI IV has raised €2,435 million in commitments from over 200 investors.

The Fund is managed by Five Arrows, the alternative assets arm of Rothschild & Co with offices in Paris, London, Luxembourg, New York, Los Angeles and San Francisco. As of August 2023, Five Arrows had an AUM of €23 billion. With over €9 billion of assets under management, the Corporate Private Equity business of Five Arrows is focused on investing in companies with highly defensive market positions, strong management teams, business models with high visibility of organic unit volume and strong unit economics, and multiple operational levers that can be used to unlock latent value. Sectors are limited to Data and Software, Technology-Enabled Business Services and Healthcare.

To access rating and relevant documents, click here.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.


Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

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