French Fixed-Income Shop Launches Credit Fund

Nov 16 2007 | 11:06am ET

Paris-based Tikehau Investment Management has launched a private equity fund designed to take advantage of the current credit crunch. The new fund, TSS, held a first close at $145 million last month, and is expected to hard close within the next few months at $500 million.

TSS is a multi-strategy credit fund, which will invest in bank loans, corporate debt, structured credit, asset-backed securities, real estate and other debt or debt-related instruments in an opportunistic way, according to founder Bruno Pampelonne.

“The fund will invest in structured and non-structured credit instruments trying to benefit from the market dislocation that we’re seeing at the moment,” he says. “It’s an opportunistic fund trying to source and buy cheap assets and hold them through better times.”

The five-year closed-end fund has a two-year investment period and charges a 1.5% management fee and 20% carried interest with a 6% hurdle rate.

Tikehau manages some $300 million in total assets. Earlier this year, it launched its first hedge fund, the $53 million long/short credit offering, Tikehau Credit Opportunities Fund, which returned 6% within the last two months, bringing its year-to-date losses to 2%.

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