Tikehau boosts debt assets by over 30%

An oversubscribed fundraising for its fourth direct lending fund has pushed Tikehau’s assets under management to new records.

Tikehau Capital has increased its private debt assets under management by 31 percent over the past year to €8.4 billion.

Announcing its second-quarter results, the firm said fundraising on its fourth-generation direct lending fund closed on €2.1 billion in the first quarter of 2019, making it the firm’s largest fund.

Growth of the private debt business was much lower in the first six months of 2019 at just €0.1 billion following the fund close, while distributions of €0.5 billion were made to investors.

Tikehau also acquired Homunity, a real estate crowdfunding business in France, through its Credit.fr subsidiary, which the firm said will help it strengthen its position in the crowdfunding sector and diversify its offering.

Overall assets under management across Tikehau’s activities increased by 16 percent to €23.4 billion over the last 12 months with strong growth in its private equity and real estate investment activities. Net inflows for the first six months of 2019 reached €1.2 billion with 60 percent coming from the private equity and real estate businesses. Tikehau said it is rebalancing its business towards higher fee-generating strategies.

The real estate business grew assets under management by €0.6 billion over the past year, while the private equity business added €0.4 billion of assets to bring its total to €1.5 billion. This was mainly driven by new fundraising by a dedicated energy transition fund and the first close of its Brienne III fund, a fund dedicated to cybersecurity.

The firm said it has sought to support its growth with further expansion, increasing employee numbers by 2 percent in the first half of 2019 to 480 employees, including several senior hires. The firm has also opened an office in Tokyo and expanded its team in Seoul to increase its presence in Asia-Pacific.