The Lyxor European Senior Debt Fund is domiciled in Luxembourg and is open to subscription by professional investors for a period of 12 months from its launch date, 30 June.
The company said the fund invests mainly in floating rate senior secured loans issued by European companies to finance acquisitions and corporate growth.
It added that the fund will provide investors with exposure to a market that is characterised by increasing loan issuance numbers so far this year and continues to feature “attractive pricing characteristics and a competitive risk-return profile”.
The fund has a target return of 5.5% to 6.5% a year before fees over six to eight years, including quarterly income distributions for distributing share classes.
The fund is managed by Lyxor Asset Management UK and does not have a performance fee.
It is hoped that the fund will reach €200m over the next 12 months.
Lyxor head of debt investments Thierry de Vergnes, said: “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.
“The current issuance dynamic of the market will enable Lyxor to build a well-diversified portfolio of European loans.”
Lyxor manages senior debt portfolios for over €600m in assets under management in funds, CLO and advisory mandate. With this second European Senior Debt Fund, Lyxor strengthens its position as a European loan market specialist.
