Tikehau closes third direct lending fund on €610m

The fund structures senior, mezzanine, unitranche and PIK loans in its fund, which targets investments in Western Europe.

French asset manager Tikehau Investment Managers has reached a final close on its third direct lending fund after raising €610 million.

Titled Tikehau Direct Lending III, the fund provides a number of debt instruments, including senior debt, unitranche, mezzanine and PIK notes, to industries across Western Europe. Tikehau invests in companies valued between €50 million and €500 million, which typically source financing for a variety of reasons, from corporate financing to LBOs. Ticket sizes range between €10 million and €300 million.

So far, around 40 percent of the fund has been invested across 15 companies based in France, Spain and Norway. Notable deals completed this year include partnering with Ares Management in a €270 million unitranche facility to support private equity firm Apax Partners’ acquisition of Norwegian satellite communication company Marlink, and the financing of Atland Group’s purchase of Financière Rive Gauche.

Antoine Flamarion, co-founder of Tikehau Capital, the parent firm of Tikehau IM, said: “This fund is larger than our previous vintages and has attracted top-tier investors. In a context of growing banking disintermediation, we are convinced that private debt is an attractive and long-lasting solution adapted to the profound changes of the financing markets.”

Earlier in the summer, Tikehau launched an agricultural-focused private debt fund in partnership with Sofiprotéol, a subsidiary of the French agro-industrial firm Avril Group. The fund is targeting a final close of €200 million.

The firm has also attracted an investment from the Singaporean sovereign wealth fund Temasek. The fund acquired a 5 percent stake in Tikehau Capital in July.

As of 31 August, Tikehau Capital had €8.7 billion of assets under management across all of its investment strategies and employed a total of 170 people across its offices in Paris, Brussels, London, Milan and Singapore. The private debt group, which comprises of a team of 15 people, has €3.3 billion of assets under management.