Regulatory News:
Tikehau Capital (Paris:TKO):
Strong growth in Asset
Management AuM1
€44.1bn
at 31 March 2024
+13%
YoY growth
Dynamic and selective
deployment
€5.4bn
deployed over the LTM
Successful realizations
momentum
€2.3bn
realized over the LTM
Robust level of AM net new
money
€6.8bn
raised over the LTM
- In the first quarter of 2024, Tikehau Capital continued to
deliver sustained growth, reflecting the strength of its
multi-local platform.
- Over the last twelve months, the Group saw robust momentum in
capital deployment, realizations, and client
demand for its Asset Management business.
- The diversity of Tikehau Capital’s investment strategies
remained instrumental in accommodating investor-clients’
allocation shifts across asset classes, which resulted in a
robust fundraising across institutional and private investors in
the first quarter.
- Tikehau Capital’s Group model is marked by a strong
level of skin in the game. At 31 March 2024, Tikehau Capital’s
€4.0bn investment portfolio is invested at 78% in its own funds,
of which c.65% in its “Yield” strategies, offering attractive
risk-adjusted returns in the current environment.
- As a result, Tikehau Capital reached €44.1bn in Asset
Management AuM at 31 March 2024, up 13% over the
last twelve months and representing a compounded annual growth
of 25% since 2016.
- In 2024, during which Tikehau Capital celebrates its 20-year
anniversary, the Group is well-positioned to capture future growth
with a robust fundraising and deployment pipeline driven by
the ramp-up of several flagship strategies and strategic
adjacencies.
- The Group is confident in its growth trajectory and confirms it
is on track to deliver on its 2026 targets.
Antoine Flamarion and Mathieu Chabran, co-founders of
Tikehau Capital, said:
“Today, we stand at the intersection of a rapidly evolving
financial landscape and a transformative era marked by major
disruptions and transitions. At Tikehau Capital, we anchor our
investment approach in a deep understanding of these shifts,
valuing both financial and non-financial criteria.
The global landscape has experienced significant volatility,
from fluctuating rates and shifts in international trade balances
to evolving monetary policies, escalating climate emergencies, and
the central role of digital technology. As we look to the future,
characterized by persistent inflation, stringent financing
conditions, and tightening regulations, we see these challenges as
opportunities. The end of an era of cheap money aligns perfectly
with our strategic positioning in private markets, allowing us to
leverage our expertise and adaptability to thrive in this
environment.
With a compounding balance sheet, innovative strategies and an
unwavering commitment to thorough fundamental analysis, we are
well-equipped to navigate the challenges and opportunities ahead.
Our entrepreneurial spirit and strong convictions position us to
capture value and drive performance for all stakeholders.”
“Our entrepreneurial spirit and strong
convictions position us to capture value and drive performance for
all stakeholders.”
FUND DEPLOYMENT DRIVEN BY PRIVATE DEBT
STRATEGIES
Building on its multi-local platform and its solid deal sourcing
capabilities, Tikehau Capital’s closed-end funds deployed
€0.9bn in the first quarter, mainly driven by the Group’s
Yield strategies. This brings deployment over the last twelve
months to €5.4bn. Discipline remained a core focus for the
investment teams in a market which has not yet stabilized.
- Private Debt funds accounted for 61% of deployment in
the first quarter, driven by the Group’s European and US CLO
platform, as well as its Direct Lending strategies. The first
quarter was notably marked by the first investment for the sixth
vintage of the Group’s Direct Lending strategy. Leveraging its
extensive industry knowledge and a solid relationship established
with the sponsor, Tikehau Capital supported Andera Partners in the
acquisition of Mistertemp’, a temporary staffing company
with a disruptive business model relying on a network of franchised
agencies and a differentiating proprietary digital platform. The
Group arranged a €68m unitranche financing including an ESG
ratchet.
- Capital deployment across Tikehau Capital’s Real Assets
strategies accounted for 29% of deployment in the first quarter and
was notably marked by the acquisition through a club-deal of a
dominant shopping center in the North of Paris together with
Klepierre and institutional co-investors. This transaction was
carried out by Sofidy’s funds and illustrates the Group’s ability
to source, structure, and finance transactions in partnership with
leading financial and real estate players, in an environment
offering attractive opportunities.
- Looking ahead, Tikehau Capital benefits from a solid pipeline
of deployment opportunities across asset classes. At 31 March 2024,
the Group had €6.7bn of dry powder2 (compared to
€6.9bn at 31 December 2023), allowing the funds managed by Tikehau
Capital to capture attractive investment opportunities.
POSITIVE REALIZATIONS MOMENTUM
In the first quarter of 2024, realizations within Tikehau
Capital’s closed-end funds amounted to €0.3bn, bringing
realizations over the last twelve months to €2.3bn. In Q1,
Private Debt strategies accounted for 56% of total exit, followed
by Real Assets at 31% and Private Equity at 13%. The Group’s
investment teams have remained actively engaged in enhancing
operational performance across portfolio companies and assets,
positioning themselves to capitalize on attractive exit
opportunities.
- Within Private Debt, approximately 70% of Q1 2024 realizations
were carried out by Tikehau Capital’s Direct Lending and
Corporate Lending strategies, corresponding to financing
repayments. The first quarter was notably marked by the repayment
of the senior secured financing of Asacha Media Group, a
consolidation platform of audiovisual production companies. In
2021, Tikehau Capital arranged a €41m financing to support Asacha
in the acquisition of two companies. Thereafter, the Group provided
add-on financing to support the acquisition of two additional
companies. In 2024, following a competitive sale process, Asacha
was acquired by Fremantle, triggering the repayment of Tikehau
Capital’s instruments.
- Realizations in Real Assets accounted for 31% of Q1 2024
realizations. Tikehau Capital’s value-add real estate strategy
continued to dispose units from a granular residential portfolio
of assets located in Portugal, which it acquired in 2021. In
January 2024, IREIT, the Group’s listed REIT in Singapore,
successfully completed the divestment of a freehold office
building located in Barcelona. The sale consideration was
€24.5m, 6.1% above the independent valuation at 31 December
2023.
ROBUST LEVEL OF NET NEW MONEY FOR A FIRST
QUARTER
Leveraging its robust track record across asset classes and
complementary investment strategies coupled with a multi-local and
multi-channel platform, Tikehau Capital continued to successfully
accommodate shifts in clients’ allocations.
Tikehau Capital attracted a record level of net new money for a
first quarter, reaching €1.5bn (+23% compared to Q1
2023), bringing net new money over the last twelve months to
€6.8bn. This illustrates Tikehau Capital’s ability to
address clients’ evolving needs. Fundraising for the Group’s
flagship strategies progressed well, reflecting client confidence
and the Group’s strong market positioning.
Net new money for the first quarter was driven by the following
developments:
- Ongoing fundraising for the sixth vintage of Tikehau
Capital’s Direct Lending strategy supported by a leadership
position in Europe and a solid track-record;
- Additional capital raised by the Group’s Private Debt
unit-linked products launched with MACSF and Société Générale
Assurances, dedicated to private investors;
- Continued momentum for the Group’s CLO business: − In Q1 2024,
Tikehau Capital launched the warehouse of its European CLO
XII;
− In addition, the Group successfully priced its European CLO
X at an upsized amount of €425m, reflecting strong demand from
approximately 30 investors across Europe, North America and the
Middle East. This transaction attracted both existing and new
investors and was well-received by the market. This achievement
reaffirms Tikehau Capital’s established track record in managing
and printing CLOs across market cycles;
- Additional commitments for Tikehau Capital’s second vintage
of Private Debt Secondaries strategy, leveraging the robust
returns delivered by the first vintage. In the first quarter,
Tikehau Capital successfully onboarded its first Mexican investor,
reflecting the relevance of its multi-local platform;
- A record first quarter for the Group’s Capital Markets
Strategies driven by continued momentum for its fixed income and
dated funds, which benefit from robust performance. These funds
also drive the Group’s outreach to private investors who are
attracted to the level of visibility and returns they provide;
- Third-party commitments for the second vintage of Private
Equity Decarbonization strategy. Tikehau Capital notably
benefited from the re-up of a large existing Spanish private bank,
which further contributes to the democratization of the
strategy;
- Continued inflows for Tikehau Capital’s third vintage of
Special Opportunities strategy, benefitting from a good level
of re-up from investors that committed into the predecessor
fund.
AuM for Tikehau Capital’s Asset Management business
amounted to €44.1bn at 31 March 2024, up 3% compared to 31
December 2023 and up 13% compared to a year ago.
Group AuM at 31 March 2024 reached €44.4bn, up 3%
compared to 31 December 2023 and up 12% compared to a year ago.
A BALANCE SHEET COMPOUNDING FUTURE
GROWTH
- Tikehau Capital’s investment portfolio amounted to €4.0bn at
31 March 2024, a stable level compared 31 December 2023. Over
the first quarter, the main variations in the portfolio were the
following:
- €153m of capital calls and investments, mainly into the
Group’s own asset management strategies, in line with the Group’s
capital allocation priority which aims at aligning interests with
investor-clients. The first quarter was also marked by capital
calls from Whistler Capital Partners, a private equity firm
specializing in the healthcare industry in North America, with
which Tikehau Capital has concluded a strategic partnership3. These
capital calls allowed Whistler Capital Partners to carry out three
investments during the first quarter.
- €54m of exits, mainly relating to divestments and
capital repayments.
- Tikehau Capital’s investment portfolio at 31 March 2024
broke down as follows:
- €3.1bn of investments in the Asset Management strategies
developed and managed by the Group (78% of total portfolio4),
generating a substantial alignment of interests with its
investor-clients.
- €0.9bn (22% of total portfolio) invested in ecosystem
and direct investments, notably direct private equity investments,
co-investments or investments in third-party funds, most of which
aim at serving Tikehau Capital’s asset management franchise
globally.
TIKEHAU CAPITAL ADVISORS
REINFORCED ITS STAKE IN TIKEHAU CAPITAL
- On 2 April 2024, Tikehau Capital announced it has been notified
by its controlling shareholder, Tikehau Capital Advisors (“TCA”, a
company which is majority owned by the founders and the management
of Tikehau Capital), that TCA completed the acquisitions of several
blocks of Tikehau Capital shares. These block purchases occurred on
27 March and 2 April 2024.
- Acquisition of these share blocks, representing an aggregate
consideration of c. €95m, reflects TCA’s strong confidence in
Tikehau Capital’s future growth prospects. Tikehau Capital remains
committed to keep delivering value to all its shareholders.
- Following these transactions, TCA owns 98,306,133 Tikehau
Capital shares and increased its stake in Tikehau Capital from
53.10%5 to 55.79%6 of the share capital and voting rights of
Tikehau Capital.
SHARE BUY-BACK
- Tikehau Capital announces it has extended until 30 July 2024
(included), date of the Group’s 2024 first half results
announcement, the share buy-back mandate, which was signed and
announced on 19 March 2020 and extended until today.
- As of 23 April 2024, 5,648,529 shares were repurchased under
the share buy-back mandate. The description of the share buy-back
program (published in paragraph 8.3.4 of the Tikehau Capital
Universal Registration Document filed with the French Financial
Markets Authority on 21 March 2024 under number D. 24-0146) is
available on the company’s website in the Regulated Information
section
(https://www.tikehaucapital.com/en/shareholders/regulated-information).
OUTLOOK
- Looking ahead, Tikehau Capital will maintain its highly
selective investment approach with a focus on mid-market,
high-quality assets positioned on secular megatrends. This will
support the Group in its objective of generating value and
delivering outperformance for both existing and new
clients.
- Building on its complementary and diversified asset classes,
the Group benefits from a robust fundraising pipeline for
2024 driven by the ramp-up of several flagship strategies and
strategic adjacencies. Tikehau Capital notably experiences
currently strong traction in specific areas, including Asia, Israel
and the Middle East.
- Tikehau Capital is confident in its ability to navigate the
evolving landscape and confirms its targets to reach, by 2026,
more than €65bn of AuM for its asset management business, more than
€250m of Fee-Related Earnings, and increase its return on equity to
mid-teens level, driven by c.€500m of net income (Group
share).
CALENDAR
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 €44.4 billion of assets under management (at 31 March
2024).
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 (€3.2 billion of shareholders’ equity at 31
December 2023), the Group 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 778 employees (at 31 March 2024)
across its 16 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
AuM at 31-03-2024
YoY change
QoQ change
In €m
Amount (€m)
Weight (%)
In %
In €m
In %
In €m
Private Debt
18,840
42%
+23%
+3,577
+4%
+647
Real Assets
13,377
30%
(5%)
(665)
(1%)
(87)
Capital Markets Strategies
5,074
11%
+18%
+788
+9%
+425
Private Equity
6,811
15%
+29%
+1,534
+5%
+303
Asset Management
44,103
99%
+13%
+5,233
+3%
+1,289
Investment activity
300
1%
(65%)
(560)
(12%)
(42)
Total AuM
44,403
100%
+12%
+4,673
+3%
+1,247
YTD evolution In €m
AuM at 31-12-2023
Net new money
Distributions
Market effects
Change in scope
AuM at 31-03-2024
Private Debt
18,193
+817
(127)
+108
(151)
18,840
Real Assets
13,464
+138
(206)
(19)
-
13,377
Capital Markets Strategies
4,649
+343
-
+82
-
5,074
Private Equity
6,508
+184
(163)
+241
+41
6,811
Total Asset Management
42,814
+1,482
(496)
+412
(110)
44,103
LTM evolution In €m
AuM at 31-03-2023
Net new money
Distributions
Market effects
Change in scope
AuM at 31-03-2024
Private Debt
15,263
+4,464
(892)
+155
(151)
18,840
Real Assets
14,042
+379
(658)
(386)
-
13,377
Capital Markets Strategies
4,286
+456
(2)
+365
(32)
5,074
Private Equity
5,278
+1,477
(548)
+564
+41
6,811
Total Asset Management
38,869
+6,777
(2,100)
+698
(142)
44,103
1Figures have been rounded for presentation purposes,
which in some cases may result in rounding differences. 2
Amounts available for investment at the level of the funds managed
by the Group. 3 Please refer to press release dated 27 July
2023. 4 Includes investments in funds managed by Tikehau
Capital, co-investments alongside Tikehau Capital asset management
strategies and SPAC sponsoring. 5 As at 25 March 2024.
6 As at 28 March 2024, taking into account the block trade
purchase of 2 April 2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240423934042/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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