Tikehau Capital will expand its UK presence as it takes over investment management of Lyxor’s European senior debt funds.
The four funds will boost Tikehau’s assets under management by €700m taking its total to €9.8bn.
Assets in its leveraged loans and CLO business will rise from €1.9bn to €2.6bn.
Lyxor’s operational team for European senior debt will join Tikehau in London and Lyxor will continue to provide second-level supervision of risks and valuation.
Tikehau co-founder Mathieu Chabran says the agreement allows the company to expand in the UK and develop expertise in leveraged loans and European credit markets.
Chabran says the transaction will allow the company to expand in an “especially supportive low-interest-rate environment”.
Lyxor chief executive Lionel Paquin says fixed income remains an important focus for the company and benefit from the company’s “deeply-rooted innovation and risk management culture”.
“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.”