The deal will boost Lyxor’s presence in the UK.

Tikehau Capital’s asset management arm, Tikehau Investment Management, will replace Lyxor UK as investment manager of Lyxor’s four European senior debt funds, carrying total assets under management of €700 million ($760 million).

The deal, which is subject to regulatory approval, will allow Tikehau to expand its leveraged loans and collateralised loan obligation (CLO) business from €1.9 billion in assets under management to €2.6 billion, bringing its total asset pool to €9.8 billion.

Under the agreement, Lyxor UK’s European senior debt operational team will join Tikehau IM in London. Lyxor will remain the management company of the funds and will continue to provide second-level supervision of risks and valuation.

“We are delighted to have signed this agreement with Lyxor, which allows us to expand in the UK and to continue developing our expertise in leveraged loans and European credit markets,” said Mathieu Chabran, co-founder of Tikehau Capital and managing director of Tikehau IM. 

“We are pleased to welcome Lyxor UK’s European senior debt team to Tikehau Capital and are confident this transaction will allow us to expand this business in an especially supportive low-interest-rate environment.”

Lyxor’s chief executive, Lionel Paquin, added that fixed income investments will remain an important focus for the company.

As of 30 September 2016, Tikehau Capital managed €8.7 billion for institutional and private investors in various asset classes.