Tikehau takes over Lyxor European debt funds

The French asset manager has taken on Lyxor’s European debt funds and UK operations team

Tikehau Capital has agreed to manage four of Lyxor’s European senior debt funds totaling €700 million, the French company announced in a Tuesday statement.

The European senior debt operational team at Lyxor UK will join the Tikehau London offices. As part of the deal, which must get the OK from regulators, Lyxor will remain the management company of these funds and still provide second-level supervision of risks and valuation.

Mathieu Chabran, co-founder and managing director of Tikehau, said this agreement will allow the asset manager to expand its credit business in the UK “in an especially supportive low-interest-rate environment”. The deal increases Tikehau’s leveraged loans and collateralised loan obligations business from €1.9 billion in assets under management to €2.6 billion, boosting its total AUM to €9.8 billion.

Lionel Paquin, CEO of Lyxor, added that fixed-income investments will continue to be an “important focus”. Lyxor had a total of eight fixed-income and credit investment funds prior to the agreement with Tikehau, with €119 billion under management and advisory at the end of this September.

The firm, a subsidiary of Société Générale, held an exclusive partnership with its parent company to the French private debt market. It was not clear if the agreement with Tikehau altered the SG-Lyxor alliance to France’s private credit space.

Last month, Tikehau reached a final close on its Tikehau Direct Lending III debt fund, after raising €610 million invested across at least 15 companies based in France, Spain and Norway including senior debt, unitranche, mezzanine and paid-in-kind notes. No investment performance statistics on the third fund were available.

On the larger deal side, Tikehau teamed up with Ares Management in June to provide a €270 million unitranche financing to back Apax Partners’ acquisition of Marlink, a maritime and land commercial satellite communication firm.