Private debt: NAO enables investments of 1,000 euros or more in private debt terms

• NAO expands its investment offering with the new private debt asset class
• Private investors can invest in the new “BNP Paribas Alternative Strategies — Diversified Private Credit Fund”
• NAO reduces the minimum investment of the private debt ELTIF to 1,000 euros instead of 30,000 euros

Berlin, 21.01.2024 - The Berlin-based WealthTech NAO (https://www.investnao.com) continues to democratize the financial market: NAO is expanding its investment portfolio to include the private debt asset class, also known as private credit. Private investors can invest in the “BNP Paribas Alternative Strategies — Diversified Private Credit Fund” via the NAO app. Through a unique co-investment approach, NAO is reducing the minimum investment of the private debt ELTIF (European Long Term Investment Fund) from 30,000 euros to 1,000 euros. The FinTech, which is active in Germany and Austria, is thus moving closer to its goal of becoming Europe's leading platform for private and alternative investments.

‍30 percent of ELTIF investments already flow into private debt

‍The “BNP Paribas Alternative Strategies — Diversified Private Credit Fund” is designed as an ELTIF in accordance with the amended EU Directive ELTIF 2.0. The research house Scope has determined for 2023 that around 30 percent of all ELTIF funds focused on private debt. According to the Global Private Markets Review 2024 From McKinsey, asset class funds launched between 2011 and 2020 achieved a median IRR of 9% p.a. The Diversified Private Credit Fund offered by NAO invests in a diversified portfolio that includes corporate loans, infrastructure loans, and real estate loans. Private debt has long been an established form of financing in the Anglo-Saxon region and is becoming increasingly important in Germany. In addition to the low correlation with capital markets, predictability contributes to the popularity of private debt. The overall attractive risk/return profile makes this asset class an important part of diversified portfolio strategies.

‍Private debt: an important part of diversified portfolios

‍“Private debt is no longer a niche investment, but so far it can only be invested by a small group of investors. For years, institutional investors have relied on private debt as a relevant part of their portfolios,” explains Robin Binder, CEO and founder of NAO. “The expansion of our investment offering is an important building block for us on our way to becoming the leading platform for private and alternative investments in Europe.” With the expansion of our product range, NAO offers investments in private debt, private equity, hedge funds, volatility and infrastructure funds and equity bonds via its app. Interested NAO users can now use the NAO app in the private debt ELTIF “BNP Paribas Alternative Strategies — Diversified Private Credit Funds” invest. In the case of private market products, it can usually take a few weeks between placing and executing the target investment. In the meantime, NAO users are currently benefiting from an interest rate of 1.50% p.a. on their assets.

‍About NAO 

NAO is a novel co-investment platform for private and alternative investments. The mission of the NAO founding team led by Robin Binder, Philipp Nowakowski and Amel Hasanovic is to liberalize investments and help people build up wealth over the long term. In the NAO app, investors can find carefully selected and exclusive investment options that were previously only available to a small financial elite. NAO was founded in Berlin in 2022 and received the FinTech Germany Award in 2024. The NAO team works with renowned banks and asset managers such as Baader Bank, Chartered Investments, FERI, Partners Group, Moonfare, UniCredit, UBS and Vontobel.