Nikko Asset Management launches new LBO Fund in Australia


Sam Hallinan

Nikko Asset Management has announced the launch of a new leveraged buyout (LBO) fund in Australia. The Nikko AM Australian LBO Loan Fund (LBO Loan Fund), established on behalf of a cornerstone Japanese institutional investor, will tap Nikko AM’s existing private debt capability within its global fixed interest team.

Sam Hallinan, Managing Director of Nikko AM Australia, said the new fund will enable the firm to harness its expertise in specialist credit, which it has built up over two decades here in Australia.

“We are excited to be able to establish this private debt capability in Australia, which recognises a strong demand from institutional clients 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,” Mr Hallinan said.

“The establishment of this fund also contributes to an important shift in Australia’s asset management sector. Australia has incredible depth across financial services, and it is important that as an industry we become more focused on promoting and distributing this capability to investors across Asia and the globe. At Nikko AM Australia, we will continue to leverage our local footprint with our Asian DNA to help our clients navigate dynamic investment markets.”

The fund will launch with a $300 million investment commitment from a Japanese institutional investor. The LBO Loan Fund will invest in syndicated bank loans supporting leveraged buyouts of Australian businesses, backed by private equity.

The LBO Loan Fund will be managed by Senior Portfolio Manager, Loans and Credit Leo Leslie who added that Nikko Asset Management has growth plans for the fund.

“In an increasingly challenging market environment, we will continue to support our clients with innovative, insight driven, and relevant investment opportunities. As we establish and develop a track record for the Australian LBO Loan Fund, we will certainly explore opportunities to bring this or other credit strategies to other investors,” Mr Leslie said.

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