Tikehau Capital exceeds its target by
reaching €42.8bn of Asset Management AuM at 31 December 2023, a 13%
growth year-over-year and a 26% CAGR since 20161
Regulatory News:
Tikehau Capital (Paris:TKO):
Dynamic and selective
deployment
€5.9bn
deployed in 2023
Robust realizations
momentum
€1.9bn
realized in 2023
Record level of AM net new
money
€6.5bn
raised in 2023
- Record level of net new money at €6.5bn for 2023, an
amount 37% above the 2017-2022 average, reflecting the strength of
the Group’s asset management platform and the relevance of its
investment strategies in the current context.
- Cumulative net new money reaches a total of €19bn over
the last 3 years and €35bn since IPO.
- Tikehau Capital is reaping the benefits of its expansion
strategy with:
- Complementary asset classes, serving a variety of
evolving client needs and efficiently navigating the current
cycle;
- An increasingly global LP base, driven by many successes
recorded in 2023 across Asia, Europe, Middle East and North
America, with international investors2 representing 54%
of net inflows3;
- A pioneer position in the democratization of alternatives,
driven by attractive and well-suited offerings across asset
classes, with private investors accounting for 29% of net
inflows in 20234.
- Sound deployment activity with €5.9bn invested,
leveraging Tikehau Capital’s multi-local platform, with a strong
focus on asset selectivity, long-term megatrends and downside
protection.
- Sustained realizations at €1.9bn in 2023, with
value-creating exits carried out across asset classes.
- Solid and compounding balance sheet with a €3.9bn
granular and diversified investment portfolio, generating strong
alignment of interests and attractive returns.
- Continued progress in expanding the Group’s
sustainability-themed and impact platform across asset
classes, a core priority embedded in the firm’s DNA.
Tikehau Capital will report earnings for the
full year 2023 on 6 March 2024 prior to the opening of the Paris
Stock Exchange. The press release will be made available at 6:30am
GMT / 7:30am CET and a webcast presentation will take place on the
same day at 9:00am GMT / 10:00am CET.
Antoine Flamarion and Mathieu
Chabran, co-founders of Tikehau Capital, said:
“In 2023, Tikehau Capital remained focused on
executing on its long-term growth plan and surpassed its AuM
target. Our successful innovative mindset, our commitment to
delivering sustainable value to our stakeholders and our growing
global franchise contributed to achieving a record-breaking year in
fundraising.
As our entrepreneurial journey approaches its
20th-anniversary milestone in 2024, we take pride in consistently
delivering on our commitments. The enduring confidence from our
clients not only underscores the relevance of our product range but
also reflects the long-term relationships we have forged along the
way, further fuelling our ambition to innovate and set new
standards. We extend our heartfelt gratitude to all teams for their
hard work and unwavering dedication.”
“Our successful innovative mindset, our
commitment to delivering sustainable value to our stakeholders and
our growing global franchise contributed to achieving a
record-breaking year in fundraising.”
SELECTIVE DEPLOYMENT DRIVEN BY PRIVATE DEBT
Building on its multi-local platform and its solid deal sourcing
capabilities, Tikehau Capital’s closed-end funds deployed
€5.9bn in 2023, with an acceleration in the second half of
the year. Capital deployment reached €1.7bn in Q4 2023, a
stable level compared to Q3 2023. Discipline remained a core focus
for the investment teams in a market which has not yet
stabilized.
- Private Debt accounted for 66% of total deployment,
driven by the firm’s European and US CLO platform, as well as its
flagship Direct Lending and Secondaries strategies. In a context of
liquidity drying up, Tikehau Capital’s Direct Lending strategies
have benefited from an active deal flow, attributed to the firm’s
pioneer positioning, and established track record coupled with the
scarcity experienced in other sources of mid-market financing.
Capital deployment remained highly selective and was carried out
without compromising documentation to preserve the credit quality
of portfolios. Additionally, the firm continued to structure
financing solutions to facilitate bolt-on acquisitions for existing
portfolio companies. In Private Debt Secondaries, the firm is well
positioned to seize attractive investment opportunities,
capitalizing on its early mover positioning in a context marked by
active portfolio management and LPs seeking liquidity.
- Private Equity accounted for 22% of total deployment,
driven by thematic investments across long-term growth trends such
as decarbonization, regenerative agriculture, cybersecurity and
aerospace.
- The firm’s special opportunities strategy recorded a
solid deployment momentum over the year, navigating a diverse range
of situations and transactions, including acquisition and growth
capex financing and refinancing. Beside the high level of activity,
the strategy remained particularly selective with portfolio
construction focusing on defensive sectors benefiting from secular
trends (business services, data centers, aerospace and prime real
estate). Most transactions in the portfolio also present a high
degree of downside protection, illustrated by the nature of
instruments and the transaction structures.
- Capital deployment across the firm’s Real Assets
strategies accounted for 13% of total deployment and was spread
across the firm’s European sale and leaseback practice, its
European Value-Add strategy as well as granular investments for
Sofidy and IREIT, the firm’s Singapore-listed REIT. Tikehau Capital
has adopted a cautious and focused approach in capital deployment
in Real Assets, while capitalizing on attractive investment
opportunities arising from a dislocated market.
- At 31 December 2023, Tikehau Capital had €6.9bn of dry
powder5 (+13% compared to 31 December 2022), allowing
the funds managed by the firm to capture attractive investment
opportunities. Dry powder was mainly located within the firm’s
Private Debt strategies, amounting to €2.7bn and representing 39%
of the total.
ROBUST LEVEL OF VALUE-CREATING EXITS
Realizations within Tikehau Capital’s closed-end funds amounted
to €1.9bn in 2023 (of which €0.4bn in the fourth quarter), a
5% growth year-over-year, driven by a higher level of realizations
in the second half of the year. Realizations were driven by Private
Debt (51% of total exits) followed by Real Assets (26%) and Private
Equity (24%).
- Within Private Debt, more than 75% of 2023 realizations were
carried out by the firm’s Direct Lending and Corporate Lending
strategies, corresponding to financing repayments. The fourth
quarter was notably marked by the repayment of c.€90m unitranche
financing to Neoapotek, an independent Italian chain of over
130 retail pharmacies, to support this company in its buy-and-build
strategy. This transaction generated a gross exit multiple of 1.2x
and a gross IRR of 13%.
- Realizations in Real Assets were mainly driven by
ongoing asset disposals from the firm’s European Real Estate
vehicles and US infrastructure funds. 2023 was mainly marked by the
first exit of the Group’s European value-add strategy with the
disposal of two boutique hotels located in Paris. The
transaction generated a gross exit multiple of 2.4x, exceeding
target. In addition, the Group continued to dispose units from a
granular residential portfolio of assets located in Portugal
and successfully conducted a refinancing process for this
portfolio.
- Private Equity accounted for 24% of realizations in
2023, driven by value-creating exits crystallizing solid realized
performance supporting future fundraising. This performance is a
testament to the firm’s relevant positioning across secular
megatrends. In 2023, Tikehau Capital notably successfully carried
out two value-creating exits with the disposal by the firm’s
private equity secondary fund of its stake in Total Eren to
TotalEnergies6 and the disposal by the firm’s growth equity fund of
its stake in the Italian company Ecopol to SK Capital,
generating gross exit multiples of 2.0x and 3.1x respectively.
RECORD LEVEL OF NET NEW MONEY, REACHING €6.5BN IN
2023
In 2023, Tikehau Capital recorded an unprecedented level of
client demand in an environment marked by continued uncertainty.
This success reflects the firm’s robust commercial activity, driven
by its multi-local and diversified platform. The firm’s capacity to
offer a wide range of investment strategies, each addressing the
needs of its investor-clients, has played a pivotal role in
successfully accommodating allocation shifts across asset classes
and fostering sustained growth.
Tikehau Capital attracted record levels of gross and net
inflows for its Asset Management business reaching €8.8bn of
gross new money, representing a 17% growth compared to the
average 2020-22 level and €6.5bn of net new money (of which
€1.8bn in the fourth quarter), a 37% growth compared to the
average 2017-22 level.
This level of client demand was mainly driven by the firm’s
“Yield” strategies. These strategies are principally
characterized by floating-rate instruments, which offer largely
predictable, inflation-hedged regular returns.
A relevant asset class mix and product
positioning
Net new money in 2023 was driven by the following successes:
- Solid development for the firm’s “Yield” strategies
across fund types and expertise driven by:
− The launch of Tikehau Capital’s sixth
vintage of Direct Lending strategy. Capitalizing on a
leadership position in Europe and a solid track-record, the firm’s
Direct Lending strategy has attracted c. €1bn of commitments since
the closing of the predecessor vintage,
− The launch of the firm’s second vintage
of Private Debt Secondaries strategy, attracting over $200m of
commitments at 31 December 2023, capitalizing on the robust returns
delivered by the first vintage,
− The continued solid momentum for the firm’s
CLO business, which reached €6.3bn of AuM at 31 December
2023 (up 40% year-over-year),
− Third-party commitments for the firm’s
strategic adjacencies with the launch of a Real Estate
Credit strategy, in partnership with Altarea7, building on
Tikehau Capital’s long-standing expertise across real estate and
private credit. AuM reached c. €200m at 31 December 2023 for this
strategy,
− Increasing demand within Capital Markets
Strategies for the firm's fixed income and dated funds,
which benefit from robust performance. These funds drive the firm's
outreach to private investors who are attracted to the level of
visibility and returns they provide. In particular, following the
launch in November 2023 of Tikehau 2029, a new 2029 fixed
maturity product composed of Investment Grade issuers8, the firm’s
dated funds expertise exceeded the €1bn AuM mark at 31 December
2023.
- Additional commitments for the firm’s “Value-Add”
strategies, which are positioned on megatrends and themes
poised for sustainable growth, were driven by:
− The launch of the second vintage of
Private Equity Decarbonization strategy, which attracted over
€600m of commitments at 31 December 2023;
− The launch of the fourth vintage of
Private Equity Cybersecurity strategy, with already more than
€200m of secured commitments9;
− Continued inflows for the third vintage
of Special Opportunities strategy, benefitting from a good
level of additional commitments from investors exposed to the
previous vintage as well as a broader investor base;
− Additional inflows for its impact platform
through its Private Equity Regenerative Agriculture
strategy, launched in partnership with AXA Climate and
Unilever, bringing AuM to over €400m at 31 December 2023.
Acceleration in client base
internationalization
- Tikehau Capital recorded major progress in the globalization
of its franchise, strengthening existing global relationships
and forging new connections in key areas of growth, particularly
Asia and the Middle East. International investors10 accounted for
54% of net inflows in 2023 and 39% (i.e, €16.9bn) of
Asset Management AuM at 31 December 2023.
- On 18 December 2023, Tikehau Capital announced having entered
into advanced discussion with Nikko Asset Management11, one
of Asia’s largest asset managers, with a view to form a business
and capital alliance. The contemplated strategic partnership would
involve both firms entering into distribution agreements in Japan
and elsewhere in Asia, as well as establishing a joint venture
dedicated to Asian private markets investment strategies. Within
this partnership, Nikko Asset Management would also acquire an
equity stake in Tikehau Capital.
Additional progress in democratizing
private markets
- Tikehau Capital benefitted from continued robust momentum for
its Private Debt unit-linked products launched with MACSF,
Société Générale Assurances and Suravenir, which attracted c.€1bn
since inception and approximately €450m for the year 2023.
- Since its inception, Opale Capital, an innovative
digital platform allowing private investors to access private
markets investment products, has raised over €80m offering a wide
range of alternative strategies, including private equity,
secondaries and opportunistic credit.
- With the objective to further address private investors’ demand
to access private markets, Tikehau Capital launched in Q4 2023 a
Private Equity fund of funds providing private wealth
investors and high-net worth individuals with the opportunity to
invest in the firm’s Private Equity strategies and the firm’s
ecosystem. This new initiative aims for €400m of total
commitments.
- Across asset classes and leveraging on the innovative
initiatives the firm launched over the past few years, Tikehau
Capital raised a total of €1.6bn from private investors
since 1 January 2023, representing 29% of third-party net new
money during the year.
At 31 December 2023, Tikehau Capital’s Asset Management AuM
reached €42.8bn, representing a 13% year-over-year growth.
Including the Investment Activity AuM, total AuM reached €43.2bn, a
11% year-over-year growth.
ROBUST BALANCE SHEET COMPOUNDING FUTURE GROWTH
In 2023, Tikehau Capital continued to use its flexible and
compounding balance sheet to support the expansion of its Asset
Management activity while ensuring alignment of interests with its
shareholders and LPs. In particular, amid a more challenging
environment, initial commitments from the firm’s balance sheet
allowed Tikehau Capital to:
- Launch strategic adjacencies (Real Estate Credit) and
new initiatives (Private Equity fund of funds);
- Launch new vintages of more established and scaling
strategies (such as Direct Lending, Cybersecurity,
Decarbonization, Credit Secondaries and CLOs).
In addition, the firm’s balance sheet played a facilitating role
in executing milestone transactions, particularly within the credit
secondaries space, leading to the successful onboarding of its
second Chinese LP for an investment totalling approximately c.$100m
in 2023.
In July 2023, Tikehau Capital announced a strategic partnership
with Whistler Capital Partners, a Nashville-based private
equity firm specializing in growth buyouts within the healthcare
industry and related tech-enabled services in North America. In
January 2024, Whistler Capital Partners successfully completed the
first investment of its latest strategy by investing in an
innovative veterinary and multi-service pet care platform focused
on modernizing the pet healthcare experience.
At 31 December 2023, Tikehau Capital’s balance sheet
investment portfolio reached €3.9bn, compared to €3.5bn at
31 December 2022. This variation resulted from:
- €0.9bn of investments, of which €0.8bn
were into the firm’s asset management strategies (mainly CLOs,
Credit Secondaries, Private Equity and Special Opportunities) and
co-investments alongside its strategies;
- €(0.6)bn of exits, including returns of capital
driven by the firm’s Growth Equity, Secondaries strategies and
CLOs;
- Fair value changes were essentially neutral, notably
driven by solid performance for the firm’s Private Equity
strategies being offset by market effects linked to its listed
REITs.
At 31 December 2023, the firm’s investment portfolio broke down
as follows:
- The firm’s investment portfolio is primarily comprised of
investments in the Asset Management strategies developed and
managed by the firm for €3.1bn (79% of total portfolio12),
generating a high alignment of interests with its investor-clients.
At 31 December 2023, Tikehau Capital’s investment portfolio is c.
65% exposed to its own “Yield” strategies, allowing the firm to
benefit from increased risk-adjusted returns in the current rising
rate environment.
- 21% of the portfolio or €0.9bn, is invested in ecosystem
and direct investments, notably direct private equity investments,
co-investments or investments in third-party funds, complementary
to the Group’s asset management strategies. These investments aim
at generating strong returns for the firm while serving its asset
management franchise globally.
Tikehau Capital’s investment portfolio benefits from a high
level of diversification and granularity with more than 300
investments spread across several industry sectors and geographies,
thus complementing the firm’s asset management activity exposure.
On top of generating continued alignment of interests with
investor-clients, the firm’s investment portfolio also allows the
firm to foster opportunities and long-term relationships with
partners.
REINFORCED COMMITMENT TOWARD SUSTAINABILITY AND IMPACT
INVESTING
- Following its commitment set in 2021 to support the goal of
achieving net zero greenhouse gas emissions by 2050 or sooner, in
line with global efforts to limit global warming to 1.5°C, Tikehau
Capital finalized its Net Zero Asset Manager targets in
March 2023. The firm has made an initial commitment to manage close
to 40% of its AuM in line with this net zero goal. For Real
Estate assets, the Group aims at improving energy and carbon
intensity, with a focus on its assets in France. With regards to
Private Equity, Private Debt and Capital Markets Strategies,
the commitment involves financing companies that are setting
decarbonization commitments and making progress towards their
low-carbon transition. The proportion of AuM to be managed in line
with net zero is intended to increase over time as new funds are
launched with net zero strategies.
- In addition, Tikehau Capital has been actively developing
dedicated sustainability-themed and impact strategies to finance
companies contributing to address key structural issues such as
decarbonization, nature & biodiversity, cyber security and
resilience. At 31 December 2023, the AuM for Tikehau Capital’s
sustainability-themed and impact platform dedicated to
investments in companies amounted to €4.3bn, of which €3.0bn was
specifically allocated to climate and biodiversity to enable
transition at scale. This puts Tikehau Capital on track to reach
its target of exceeding €5bn by 2025. Additionally, over the past
two years, the firm’s real estate investment and ESG teams
collaborated closely to launch and fortify a platform, amounting to
€7.4bn in funds earmarked for sustainable cities.
- In September 2023, Tikehau Capital successfully priced a new
sustainable bond issue for €300m maturing in March 203013. This
issue of senior unsecured sustainable bond is associated with a
fixed annual coupon of 6.625%. The issuance of this second
sustainable bond reinforces the position of Tikehau Capital as a
pioneer in sustainability. The net proceeds of this issuance are
used to carry out investments as part of Tikehau Capital’s
sustainable bond framework. At 31 December 2023, 78% of the
firm’s debt is linked to sustainability criteria.
CALENDAR
6 March 2024
FY 2023 results (before market open)
Management presentation to be held
in-person in London (and webcast)
23 April 2024
Q1 2024 announcement (after market
close)
6 May 2024
Annual General Meeting
30 July 2024
2024 half-year results (after market
close)
Management presentation to be held via
audiocast
22 October 2024
Q3 2024 announcement (after market
close)
ABOUT TIKEHAU CAPITAL
Tikehau Capital is a global alternative asset management group
with €43.2 billion of assets under management (at 31 December
2023).
Tikehau Capital has developed a wide range of expertise across
four asset classes (private debt, real assets, private equity and
capital markets strategies) as well as multi-asset and special
opportunities strategies.
Tikehau Capital is a founder led team with a differentiated
business model, a strong balance sheet, proprietary global deal
flow and a track record of backing high quality companies and
executives.
Deeply rooted in the real economy, Tikehau Capital provides
bespoke and innovative alternative financing solutions to companies
it invests in and seeks to create long-term value for its
investors, while generating positive impacts on society. Leveraging
its strong equity base (€3.1 billion of shareholders’ equity at 30
June 2023), the firm invests its own capital alongside its
investor-clients within each of its strategies.
Controlled by its managers alongside leading institutional
partners, Tikehau Capital is guided by a strong entrepreneurial
spirit and DNA, shared by its 758 employees (at 31 December 2023)
across its 15 offices in Europe, Middle East, Asia and North
America.
Tikehau Capital is listed in compartment A of the regulated
Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP).
For more information, please visit: www.tikehaucapital.com.
DISCLAIMER
This document does not constitute an offer of securities for
sale or investment advisory services. It contains general
information only and is not intended to provide general or specific
investment advice. Past performance is not a reliable indicator of
future earnings and profit, and targets are not guaranteed.
Certain statements and forecasted data are based on current
forecasts, prevailing market and economic conditions, estimates,
projections and opinions of Tikehau Capital and/or its affiliates.
Due to various risks and uncertainties, actual results may differ
materially from those reflected or expected in such forward-looking
statements or in any of the case studies or forecasts. All
references to Tikehau Capital’s advisory activities in the US or
with respect to US persons relate to Tikehau Capital North
America.
APPENDIX
Key operating metrics
In €m, AM perimeter
2019
2020
2021
2022
2023
Capital deployment
3,639
2,773
5,545
6,886
5,858
Realizations
n.a
1,352
1,531
1,832
1,926
Net new money (NNM)
4,074
4,185
6,365
6,390
6,498
AuM evolution
AuM at 31-12-2023
YoY change
QoQ change
Amount (€m)
Weight (%)
In %
In €m
In %
In €m
Private Debt
18,193
42%
+23%
+3,400
+6%
+1,000
Real Assets
13,464
31%
(2%)
(275)
(3%)
(461)
Capital Markets Strategies
4,649
11%
+12%
+503
+5%
+220
Private Equity
6,508
15%
+26%
+1,346
+10%
+616
Asset Management
42,814
99%
+13%
+4,974
+3%
+1,375
Investment activity
342
1%
(64%)
(612)
(34%)
(176)
Total AuM
43,156
100%
+11%
+4,362
+3%
+1,198
YoY evolution, in €m
AuM at 31-12-2022
Net new money
Distributions
Market effects
Change in scope
AuM at 31-12-2023
Private Debt
14,793
+4,191
(878)
+87
-
18,193
Real Assets
13,739
+723
(544)
(453)
-
13,464
Capital Markets Strategies
4,146
+224
(7)
+317
(32)
4,649
Private Equity
5,162
+1,361
(453)
+438
-
6,508
Total Asset Management
37,841
+6,498
(1,882)
+389
(32)
42,814
Q4 2023, in €m
AuM at 30-09-2023
Net new money
Distributions
Market effects
Change in scope
AuM at 31-12-2023
Private Debt
17,193
+1,155
(131)
(24)
-
18,193
Real Assets
13,925
(46)
(141)
(274)
-
13,464
Capital Markets Strategies
4,429
+71
(1)
+150
-
4,649
Private Equity
5,892
+603
(141)
+153
-
6,508
Total Asset Management
41,439
+1,783
(413)
+5
-
42,814
1 Figures have been rounded for presentation purposes,
which in some cases may result in aggregate differences. 2
International investors refer to non-French investors. 3
Third-party net new money excluding Sofidy. 4 Third-party
net new money. 5 Amounts available for investment at the
level of the funds managed by the Group. 6 Please refer to
press release dated 25 July 2023. 7 Please refer to press
release dated 1 June 2023. 8 Issuers belonging to the
“Investment Grade” category at the date of the investment. Please
refer to press release dated 23 November 2023. 9 Please
refer to press release dated 25 October 2023. 10
International investors refer to non-French investors. 11
Pleser refer to press release dated 18 December 2023. 12
Includes investments in funds managed by Tikehau Capital,
co-investments alongside Tikehau Capital asset management
strategies and SPAC sponsoring. 13 Please refer to press
release dated 8 September 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240206001944/en/
PRESS: Tikehau Capital: Valérie Sueur – +33 1 40 06 39 30 UK –
Prosek Partners: Philip Walters – +44 (0) 7773 331 589 USA – Prosek
Partners: Trevor Gibbons – +1 646 818 9238
press@tikehaucapital.com
SHAREHOLDER AND INVESTOR: Louis Igonet – +33 1 40 06 11 11
Théodora Xu – +33 1 40 06 18 56 shareholders@tikehaucapital.com
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