Fund managers including Tikehau, Novum and Hayfin are looking to raise new European special situations and distressed debt funds, anticipating a rise in distressed companies and non-performing loans to be offloaded by banks this year.

French asset manager Tikehau is raising its first special situations fund, targeting €500 million, according to a person familiar with the matter. The fund is expected to hold a first close in May and will invest in "mispriced" debt traded on the secondary market.