Tikehau closes flagship direct lending fund with €3.3bn

The fund manager has widened its base of LPs, with a growing number of commitments coming from outside of Europe.

Paris-based alternatives manager Tikehau Capital has closed its latest direct lending fund on €3.3 billion, raising 57 percent more capital than its predecessor vehicle.

Tikehau Direct Lending V launched in December 2020 and received backing from institutional investors around the world, including family offices, pension funds and insurance companies. Tikehau said 83 percent of commitments were from LPs outside of France and more than 35 percent from investors outside of Europe. Investors in previous vintages increased their commitments by 60 percent for the fifth fund.

The fund will follow a similar strategy to its predecessors, looking to provide bespoke financing for European SMEs. It has already invested in 55 companies across Europe, including in Benelux, Spain, Germany, the UK and France, as well as in Canada.

The previous fund, TDL IV, closed in February 2019 with €2.1 billion of commitments, substantially over its target of €1 billion.

Cécile Mayer-Lévi, head of private debt at Tikehau Capital, said: “This is a testament to Tikehau Capital’s disciplined investment approach and solid long-term track record. We have a very strong pipeline of opportunities and will continue to focus on deploying the fund’s capital to finance Europe’s leading SMEs.”