Oak Hill Advisors, the New York-based fund management debt specialist, is expanding into Europe.
The group, which manages $6bn in a range of debt instruments, including leveraged loans, high yield bonds, mezzanine investments and distressed debt in the US, said the move reflected strong growth expectations in UK and European debt financing.
The London operation will be co-headed by Richard Munn, former head of European loan syndications at Deutsche Bank, and Ty Wallach, a senior member of Oak Hill's investment team. He has been with the firm 10 years.
It is understood that the company will begin an agressive recruitment drive for senior investment staff in London where it will open an office later this year.
Glenn August, president of Oak Hill Advisors, said: "We believe there will be continued growth in the European debt markets, much of it driven by ongoing high levels of private equity activity. Building a presence in London will broaden our private equity relationships, expand the number of opportunities we see and make it easier for us to conduct intensive primary due diligence."
Oak Hill's London office will focus on credit analysis and relative values, working with banks, private equity sponsors and other investment funds.