France-based asset manager Tikehau IM has held a final close of €230 million on its first senior loan fund.
The Tikehau Corporate Leveraged Loan Fund (TCLLF) closed on 30th September and lifts the amount of assets under management in its senior leveraged loan strategy to more than €700 million, the firm said on Monday.
The fund is Tikehau’s first senior debt fund, having held all previous leveraged loans through managed accounts. The firm launched TCLLF in November 2013 and held a first close in the first quarter of 2014, Mathieu Chabran, managing director of Tikehau, told Private Debt Investor. The group sourced commitments from around 10 institutional investors, most of which are insurance companies.
“We’ve clearly started a new chapter,” Chabran told PDI, both in terms of more people and more places, he explained. The firm has made key hires lately including Nathalie Bleunven last month, previously of Indigo Capital, to develop the company’s corporate direct lending activity, and Deborah Anderson in April, a former Blackstone GSO senior managing director with extensive CLO experience, to head its credit expansion in Europe. The Paris-headquartered group opened an office in London last year and in Singapore in September.
Tikehau cited diversification and prospective returns targeted at Euribor plus 4 percent on a five to seven year horizon as driving forces behind investor attraction to its senior loan fund. Chabran also explained how new French regulatory provisions introduced at the end of last year, allowing insurance companies to count this new type of fund towards their solvency capital requirements, as a factor.
Chabran said in a statement: “Senior leveraged loans continue to be a very attractive asset class for institutional investors as they provide senior, floating and recurring features of the underlying assets. Moreover, spreads continue to offer an attractive relative value compared to other European corporate fixed-income strategies. After a frenetic summer, the European Leveraged Loan market is back to a more selective pace of activity and offering selective opportunities to investors.”
TCLLF is around one third invested with 18 senior leveraged loan investments made so far amounting to around €80 million, he said.
Tikehau is majority held by its managers, alongside institutional partners such as Credit Mutuel Arkea, Unicredit and Amundi. The group has €4.5 billion in diversified AUM including €900 million in equity capitalisation and principal capital.