Lyxor Asset Management has launched its second senior debt fund.
The vehicle, called Lyxor European Senior Debt Fund, will invest mainly in senior secured loans issued by European companies to finance acquisitions and corporate growth, Lyxor said in a statement.
Lyxor said the fund would give institutional investors exposure to a market characterised by increaseing issuance and attractive pricing characteristics, and a competitive risk-return profile.
“By investing in European loans, investors get exposure to high yielding debt with a floating rate income profile that ranks at the top of the capital structure of the issuer”, said Thierry de Vergnes, head of debt investments at Lyxor. “The current issuance dynamic of the market will enable Lyxor to build a well-diversified portfolio of European loans.”
Lyxor is targeting a return of Euribor + 5.5 percent to 6.5 percent per year gross of fees over six to eight years. This will include quarterly income distributions (targeting 3M E+4.5 percent to 5 percent before fees) for distributing share classes.
Its previous fund raised €275 million in 2013. No target has been disclosed for the new fund.