Strong Start to the Year for Tikehau Capital
April 21 2022 - 10:45AM
Business Wire
Regulatory News:
During the first quarter of 2022, Tikehau Capital (Paris:TKO)
saw strong momentum across geographies and asset classes. The
Group’s global footprint expanded both in terms of fundraising and
deployment, leveraging its multi-local platform as well as the
strong performance of its investment strategies. In addition,
Tikehau Capital’s new initiatives are ramping up rapidly, and its
flagship strategies continue to attract strong client
demand.
In this context, Tikehau Capital reached €35.5bn in Group AuM
at 31 March 2022, up 21% year-over-year. The Group thus exceeded
its target of reaching, by the end of 2022, more than €35bn in
Group AuM. This growth was driven by the increase in AuM for the
firm’s asset management business (+23% YoY), which amounted to
€34.1bn.
This strong first quarter echoes Tikehau Capital’s 2022
Capital Markets Day during which the firm set new mid-term
perspectives with the ambition, by 2026, to reach over €65bn of AuM
for its asset management business, generate over €250m of
Fee-Related Earnings1 and drive its Return on Equity to mid-teens
level.
KEY FIGURES OF THE
QUARTER
Group AuM
€35.5bn
+21%
at 31 March 2022
YoY growth
Asset Management AuM
€34.1bn
+23%
at 31 March 2022
YoY growth
Strong fundraising
€1.5bn
x3
in Q1 2022
vs Q1 2021
Dynamic deployment
€1.5bn
x2
in Q1 2022
vs. Q1 2021
Antoine Flamarion and Mathieu Chabran, co-founders of
Tikehau Capital, said:
"2022 is off to a strong start for Tikehau Capital. We continue
to leverage our teams’ ability to innovate, while remaining highly
selective in investing our clients' capital and our balance sheet.
Client demand remained high for our strategies, as evidenced by
material inflows recorded in the quarter. We are staying the course
and focusing on executing our plan in a world currently in
transition. As announced during our Capital Markets Day on 22
March, we are committed to accelerating our profitable growth
journey and delivering strong performance, while scaling up our
platform. Strategic nimbleness will be key to seizing opportunities
that will emerge in the context of rising inflation and higher
interest rates.”
“We are staying the course and focusing on
executing our plan in a world currently in transition.”
AuM at 31-Mar-2022
YoY change
QoQ change
In €m
Amount (€m)
Weight (%)
In %
In €m
In %
In €m
Private debt
12,351
35%
+32.9%
+3,060
+5.5%
+643
Real assets
12,593
36%
+20.3%
+2,123
+5.0%
+604
Capital markets strategies
4,879
14%
+15.1%
+640
(4.8%)
(245)
Private equity
4,281
12%
+16.0%
+590
+3.4%
+142
Asset Management
34,104
96%
+23.2%
+6,412
+3.5%
+1,143
Investment activity
1,347
4%
(19.0%)
(315)
+3.3%
+43
Total AuM
35,451
100%
+20.8%
+6,097
+3.5%
+1,186
CONTINUED STRONG MOMENTUM FOR THE
ASSET MANAGEMENT BUSINESS
- At 31 March 2022, AuM for Tikehau Capital’s asset management
business reached €34.1bn, representing a 23.2% growth
year-over-year and a 3.5% growth compared to 31 December
2021. This growth results from:
- +€1.5bn of net new moneyover the quarter, bringing
net new money for the last twelve months to €7.4bn,
reflecting the trust placed by investor-clients in the Group’s
disciplined investment approach,
- €(0.2)bn of distributions, mainly across private debt
and real assets strategies,
- €(0.1)bn of market effects, mainly on fixed income
funds.
- Leveraging the firm’s multi-local platform, deployment
momentum remained strong during the quarter with €1.5bn of
capital deployed selectively across Tikehau Capital’s closed-end
strategies, almost twice the amount deployed in Q1 2021.
- Private Debt funds were the main contributor to Q1 deployment,
accounting for 63% of total deployment, followed by Private Equity
funds, representing 24% of total deployment, and Real Assets for
13% of total.
- In Private Debt, Tikehau Capital acted as sole arranger
of a £60m unitranche financing supporting One Equity Partners in
their acquisition of Trustmarque, a UK value-added reseller of IT
software and hardware. In addition, the firm maintained a strong
momentum for its CLO business in Q1 2022 after a milestone year in
2021, with the launch of its second US CLO and the ramp-up of its
European CLO VII.
- In Private Equity, the firm acquired a 40% stake in
Egis, a leading French specialist in construction engineering and
mobility services, via its Energy Transition Fund. The firm’s
growth equity strategy invested in Oryx Group
(Proprietes-privees.com), a digital platform which connects supply,
demand and talent in the real estate property market, supporting
the group’s growth development plan in France and globally.
- In Real Assets, Selectirente, the firm’s French REIT,
pursued its development with the acquisition of the iconic “Les
Grands Hommes” market in the city center of Bordeaux for a total
area of nearly 3,000 sqm for c. €25m.
- Looking ahead, Tikehau Capital has a significant deployment
pipeline across asset classes. At 31 March 2022, the Group had
dry powder of €5.8bn within the funds it manages, enabling
them to capture attractive investment opportunities.
- Client demand was robust in Q1 2022 with net new money
reaching €1.5bn, compared to €0.5bn in Q1 2021. Over the last
twelve months, net new money for the asset management business
reached €7.4bn. The successes recorded during the quarter reflect
the relevance of the Group’s international expansion, asset class
mix and expertise in impact investing:
- 12 months after opening an office in Frankfurt, Tikehau Capital
was awarded a €250m real-estate evergreen investment mandate
by a leading global industrial company for its German pension
fund.
- Tikehau Capital was entrusted by Pensioenfonds Detailhandel,
the pension fund for the retail sector in The Netherlands, to
manage a €100m private debt mandate, through its Impact
Lending strategy, launched in December 2020.
- Tikehau Capital’s platform continues to expand across North
America, with the launch of the Group’s second US CLO, which
closely follows the successful launch and closing of the firm’s
first US CLO for a size of $400m in Q4 2021.
- The Group’s real estate investment vehicles dedicated to
retail investors achieved an impressive c.€400m in net new money
during Q1 2022. This is one of the highest levels of net new money
recorded by Sofidy in a single quarter.
- The firm successfully launched a new impact fund focusing on
green assets which buys, finances, builds, owns and operates
small, decentralised assets that enable to reduce the carbon
footprint of their end-users. The first closing of the fund reached
more than €100m of commitments.
INVESTMENT
PORTFOLIO
- Tikehau Capital’s investment portfolio amounted to
€3.2bn at 31 March 2022, compared to €2.7bn at 31 December
2021. This €0.5bn increase results from:
- +€0.6bn of investments carried out over the quarter, of
which €0.5bn into the Group’s own asset management strategies, in
line with the Group’s capital allocation strategy aiming to align
its interest with its investor-clients. Investments notably include
the acquisition of a Limited Partnership interest in a direct
lending fund managed by a leading US alternative asset manager
alongside the firm’s Private Debt Secondaries strategy2
- -€0.1bn of exits, mainly corresponding to divestments
and capital repayments.
- Over the quarter, the investments in the funds and strategies
developed and managed by Tikehau Capital performed, on an
annualized basis, in line with the 10-15% expected returns.
- The firm’s €3.2bn investment portfolio at 31 March 2022
broken down into the following:
- €2.7bninvested in the funds and strategies developed and
managed by the firm (83% of total portfolio), generating high
alignment of interests with its investor-clients
- €0.6bn invested in ecosystem and direct investments,
notably direct private equity investments, co-investments or
investments in third party funds, all of which aim at serving
Tikehau Capital’s asset management franchise globally and offer
diversification to the Group’s portfolio exposure.
- Tikehau Capital will continue to use its balance sheet, a
differentiating asset and enabler of growth, to strengthen its
platform by launching new families of products and vehicles, and
also maintain a high level of alignment of interests with its
shareholders and investor-clients.
SHARE BUY-BACK
- Tikehau Capital announced it has extended until 28 July 2022
(included), date of the Group’s 2022 half-year results release, the
share buy-back mandate, which was signed and announced on 19 March
2020 and extended on 9 March 2022 until today. The size of this
mandate has increased from €90m to €100m.
- As of 20 April 2022, 3,562,626 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 25 March 2022 under number D. 22-0152) is
available on the company’s website in the Regulated Information
section
(https://www.tikehaucapital.com/en/finance/regulatory-information).
STRONG OUTLOOK
- Tikehau Capital will continue to closely monitor how the
current geopolitical situation unfolds, and risk assessment
work will continue as the political and economic crisis evolves.
There are no portfolio companies domiciled in Ukraine or Russia,
and total portfolio companies’ exposure to revenue generated from
those countries is very limited.
- Client demand remains strong across the asset classes in
which Tikehau Capital is positioned, demonstrating the relevance
and the strong performance of the firm’s investment
strategies.
- In addition, Tikehau Capital operates with a differentiating
investment approach based on megatrendswhich are set to
accelerate, especially in a world currently in transition, of which
energy transition, digitalization, cybersecurity and real estate
conversion. The firm is convinced that these investment focus will
drive long-term value creation.
- During its Capital Markets Day, which took place on 22 March
2022, Tikehau Capital set the ambition to materially accelerate
its expansionand aims to:
- Reach more than €65bn of AuMfor its asset management
business by 2026, thus doubling the size of its AuM
- Generate more than €250m of Fee-Related Earnings by
2026, a 2.6x progression vs 2021
- Drive its return on equity to mid-teens level by
2026
- To achieve these new targets, the firm will continue to scale
its investment strategies, driving strong operating leverage going
forward, while continuing to leverage its compounding balance
sheet, which is on track to generate growing and increasingly
predictable returns.
CALENDAR
18 May 2022
Annual General Meeting of Shareholders
28 July 2022
2022 first half results (after market
close)
20 October 2022
Q3 2022 announcement (after market
close)
ABOUT TIKEHAU
CAPITAL
Tikehau Capital is a global alternative asset management group
with €35.5 billion of assets under management (at 31 March
2022).
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 (€3.0 billion of shareholders’ equity at 31
December 2021), 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 723 employees (at 31 March 2022)
across its 13 offices in Europe, 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
YoY (in €m)
AuM at 31-03-2021
Net new money
Distri- butions
Market effects
Change in scope
AuM at 31-03-2022
Change (%)
Change (€m)
Private debt
9,292
+3,856
(975)
+179
-
12,351
+32.9%
+3,060
Real assets
10,470
+2,225
(379)
+277
-
12,593
+20.3%
+2,123
Capital markets str.
4,239
+703
(7)
(56)
-
4,879
+15.1%
+640
Private equity
3,691
+566
(55)
+30
+49
4,281
+16.0%
+590
Total Asset Mgt
27,692
+7,350
(1,417)
+430
+49
34,104
+23.2%
+6,412
YTD (in €m)
AuM at 31-12-2021
Net new money
Distri- butions
Market effects
Change in scope
AuM at 31-03-2022
Change (%)
Change (€m)
Private debt
+11,709
+772
(158)
+29
-
12,351
+5.5%
+643
Real assets
+11,989
+663
(62)
+3
-
12,593
+5.0%
+604
Capital markets str.
+5,124
(113)
-
(121)
-
4,879
(4.8%)
(245)
Private equity
+4,139
+147
(28)
+23
-
4,281
+3.4%
+142
Total Asset Mgt
+32,961
+1,469
(248)
(77)
-
34,104
+3.5%
+1,143
1 Fee-Related Earnings, defined as management and other
fees minus asset management operating costs. 2 Please see
press release dated 22 March 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220421005783/en/
PRESS CONTACTS: Tikehau Capital: Valérie Sueur – +33 1 40 06 39
30 UK – Prosek Partners: Henrietta Dehn – +44 7717 281 665 USA –
Prosek Partners: Trevor Gibbons – +1 646 818 9238
press@tikehaucapital.com
SHAREHOLDER AND INVESTOR CONTACTS: Louis Igonet – +33 1 40 06 11
11 Théodora Xu – +33 1 40 06 18 56
shareholders@tikehaucapital.com
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