Nikko AM's new leveraged buyout (LBO) fund will be run by the Japan-headquartered firm's global fixed income team, using its existing private debt capability.
The LBO Loan Fund will invest in syndicated bank loans supporting leveraged buyouts of Australian businesses, backed by private equity.
The fund will launch with a $300 million investment commitment from a Japanese institutional investor, according to a statement by the company.
Sam Hallinan, Nikko AM's managing director in Australia, said the new fund would use its specialist credit expertise that has been built over the past two decades 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," Mr Hallinan said.
"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.
"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."
