Paris-based Tikehau Capital has agreed with Lyxor to manage Lyxor’s European senior debt funds.
Through the transaction, subject to regulatory approval, Tikehau will expand its leveraged loans & CLO business from €1.9bn in assets under management to €2.6bn, hence raising its total AUM to €9.8bn.
Tikehau Investment Management, the asset management branch of Tikehau Capital, will replace Lyxor UK, as investment manager of Lyxor’s four European senior debt funds, with a total of €700m in AUM.
It is understood Lyxor UK’s European senior debt operational team will join Tikehau IM in London and that Lyxor will remain the management company of these funds, providing second-level supervision of risks and valuation.
Mathieu Chabran, co-founder of Tikehau Capital and managing director of Tikehau IM commented: “We are delighted to have signed this agreement with Lyxor, which allows us to expand in the United Kingdom and to continue developing our expertise in leveraged loans and European credit markets.”
Lionel Paquin, CEO of Lyxor, said: “This agreement plays to Lyxor’s well-recognized strengths for working in partnership with external asset managers, a field in which we have a nearly 20-year track-record. By remaining the management company of the funds, Lyxor continues to accompany its clients. We are confident that Tikehau Capital, thanks to its well-regarded expertise in European debt markets, will greatly contribute to the quality and future development of this activity. Furthermore, fixed income investments, which benefit from our deeply-rooted innovation and risk management culture, remain an important focus for Lyxor.”
As of 30 September 2016, Tikehau Capital managed €8.7bn in assets.