The fund’s objective is to invest in senior secured loans that have been made primarily to European private equity sponsored companies in order to support buyout, expansion and recapitalisation moves.

Launched in November, the fund has completed a first closing, enjoying strong traction amongst European institutional investors, said the firm.

“Leveraged loans are an increasingly popular financial instrument for investors, considering they are senior, secured and provide floating rate exposure,” Mathieu Chabran, co-founder & chief investment officer of Tikehau IM explained.

Earlier this year, Tikehau IM, was also selected to manage Novo 2, one of the two funds, created by a consortium of insurance companies, to provide up to €1 billion ($1.35 billion) in total fundings to mid-market corporates. Launched in 2007, the credit investment platform has managed to accumulate €2.3 billion in assets under management as of  21 November 2013.