Nikko AM launches LBO fund
Nikko Asset Management has launched a new leveraged buyout (LBO) fund in Australia, the Nikko AM Australian LBO Loan Fund (LBO Loan Fund).
The $300 million fund, which was established on behalf of a cornerstone Japanese institutional investor, would invest in syndicated bank loans supporting leveraged buyouts of Australian businesses, backed by private equity.
The new fund would be managed by senior portfolio manager, loans and credit, Leo Leslie.
The launch of a new fund would also enable the company to “harness its expertise in specialist credit”, it said.
Nikko AM Australia’s managing director, Sam Hallinan said: “We are excited to be able to establish this private debt capability in Australia, which recognises a strong demand from institutional investors who want to access the return profile of private markets.
“Nikko AM has developed a leadership position in specialist credit over many years and the new LBO fund will enable us to tap this expertise and continue this momentum.”
AUTHOR
Oksana Patron
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
