Tikehau IM, the independent European Asset Manager of the Tikehau group specialised in fixed income, today announced the final closing as of 30 September of its latest senior leveraged loans fund at €230m, Tikehau Corporate Leveraged Loan Fund (TCLLF) lifting the amount of AUM in its senior leveraged loan strategy to more than €700m.
Tikehau IM sourced commitments from about 10 institutional investors, most of which insurance companies, who valued the diversification and prospective returns (with targeted return of Euribor +4% on a 5-7-year horizon), as well as the new regulatory provisions which allow them to count this new type of fund towards their solvency capital requirement.
Commenting on the closing, Mathieu Chabran, Managing Director of Tikehau IM said: “We are very pleased with the reception we had from investors. Senior leveraged loans continue to be a very attractive asset class for institutional investors as they provide senior, floating, and recurring feature 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”
Tikehau Corporate Leveraged Loan Fund (TCLLF) has already invested in about 15 senior leveraged loan. Diversification remains one of the key pillars of the investment strategy, with a targeted maximum exposure of 4% of the fund for each holding.