Tikehau raises convertible debt; reshuffles shareholding

The founders and management of the French asset manager increased their stake in the investment company, Tikehau Capital Partners, while reducing their stake in the management company in favour of Crédit Mutuel Arkéa.

Tikehau Group have raised €325 million in convertible bonds through two separate seven-year notes, the firm announced. In tandem, the founders and management reduced their stake in the management company from 90 percent to 84.2 percent while increasing their stake in one of the firm’s two investment companies, Tikehau Capital Partners (TCP), to 47 percent, co-founder and chief investment officer, Mathieu Chabran told PDI.

Tikehau Capital Partners issued a €175 million 2022 senior unsecured convertible bond. It pays a coupon of 1.3 percent, said Chabran. While Salvepor, the firm’s other investment company which targets listed and unlisted small- and medium-sized businesses through minority investments placed a €150 million senior unsecured convertible bond. It matures in January 2022 and pays a coupon of 1.6 percent.

The cash option bonds are redeemable in cash and / or exchangeable for existing shares.

The debt will be used to help grow Tikehau’s business as it sets its sights on expansion, Chabran explained. It also introduces new investors to the firm, he added.

The shareholder reshuffle executed at the same time as the bond issuance saw French bank and insurer Crédit Mutuel Arkéa, which has been an investor in Tikehau for a number of years, rejig its shareholding from the investment company level to the management company level. Crédit Mutuel Arkéa is now a 6.8 percent shareholder in management company Tikehau Capital Advisors (TCA) joining existing shareholders Amundi (6.8 percent) and UniCredit (2.2 percent). Tikehau’s founders and management reduced their holding in TCA from 90 percent to 84.2 percent while also increasing their investment company stake.

The almost fifty percent investment company holding by the founders and management means that it is fully aligned with investors, said Chabran, rather than concentrating on the fees collected by the management company.
Tikehau is also in the market fundraising for its third direct lending fund and is expecting a further close by the end of this quarter, PDI understands.

Tikehau has more than €5 billion in assets under management through its asset management subsidiary, Tikehau IM, its listed minority equity investment company, Salvepar, and its long term investment company, Tikehau Capital Partners. The firm has offices in Paris, Brussels, London and Singapore.