Following the launch of its EUR275 million European senior debt fund in July 2013, Lyxor is launching a commingled European senior debt fund, the Lyxor European Senior Debt Fund.
The fund, which is open to subscription by professional investors for a period of 12 months from 30 June 2014, is an AIFMD-compliant fund (SICAV-SIF) domiciled in Luxembourg.
The fund invests mainly in floating rate senior secured loans issued by European companies to finance acquisitions and corporate growth. The fund will provide investors with exposure to a market that is characterised by increasing loan issuance numbers so far this year and that continues to feature attractive pricing characteristics and a competitive risk-return profile.
“By investing in European loans, investors get exposure to high yielding debt with a floating rate income profile that ranks at the top of the capital structure of the issuer,” says Thierry de Vergnes, head of debt investments at Lyxor. “The current issuance dynamic of the market will enable Lyxor to build a well-diversified portfolio of European loans.”
The fund will target a return of 3M Euribor + 5.5 per cent to 6.5 per cent per year before fees over six to eight years. This will include quarterly income distributions (targeting 3M Euribor + 4.5 per cent to 5.0 per cent before fees) for distributing share classes.
