Tikehau IM has held the final closing of its latest senior leveraged loans fund, Tikehau Corporate Leveraged Loan Fund (TCLLF), at EUR230 million, lifting the amount of AUM in its senior leveraged loan strategy to more than EUR700 million.
Tikehau IM sourced commitments from about 10 institutional investors, most of which were insurance companies, who valued the diversification and prospective returns as well as the new regulatory provisions which allow them to count this new type of fund towards their solvency capital requirement.
Mathieu Chabran, managing director of Tikehau IM, says: “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.”
The fund has already invested in about 15 senior leveraged loans. Diversification remains one of the key pillars of the investment strategy, with a targeted maximum exposure of four per cent of the fund for each holding.