BNP creates distressed finance group

BNP Paribas has established a new distressed finance group, to be led by Alain Dib. Dib, previously co-head of European high-yield capital markets, will remain in London.

The head of the US group will be Monique Hill, previously head of US distressed debt and special situations. Hill, who is based in New York, will report to Dib.

The bank’s move is part of a broader trend in financial markets that has seen several private equity houses invest heavily in the distressed debt market. Between the third quarter of 2007 and Q1 2008, New York-based private equity house Apollo Global Management spent $1.3 billion on distressed buyouts and debt investments, while private global investment firm Carlyle Group raised $1.35 billion for a distressed debt fund earlier this year.

See also: Asia credit heads turning to distress
Managers launch distressed debt funds 
Apollo poaches distressed debt team from Credit Suisse