Amundi launches €300m fund backing LBOs

The French asset manager aims to tackle larger loans and buyout opportunities with its first debt fund launch of the year.

Amundi has announced the launch a private debt fund focused on backing leveraged buy-outs and major acquisitions.

The Paris-headquartered asset manager is aiming to raise €300 million for Amundi Leveraged Loans Europe 2018, which it is marketing to investors across Western and Northern Europe.

The fund is structured as a sub-fund of a SICAV governed under Luxembourg law and will invest in senior secured leveraged loans issued to finance buyouts and large-scale acquisitions.

Amundi said new issues of European leveraged loans have exceeded European high-yield bond issues in 2016 and 2017 and are attractive to investors due to expected increases in interest rates.

The fund aims to deliver returns of around 4 percent above Euribor over a six to eight-year period while providing monthly liquidity. Amundi said that while the strategy does carry credit risk, it offers an attractive returns profile to institutional investors while having a low correlation to traditional fixed income assets.

Thierry de Vergnes, head of acquisition debt funds at Amundi, said: “We invest in both the primary and secondary markets with the aim of taking advantage of market opportunities, and we also seek diversification across both sectors and geographic regions in the portfolio. The objective of this active, diversified management is to generate regular returns with low volatility.”

Amundi Leveraged Loans Europe 2018 will be part of the group’s fixed income platform which has 150 professional bond and loan specialists at major investment centres in London, Paris, Milan and Boston, US.