Fund Management

Tikehau real estate assets overtook private debt in 2019

The firm continues to diversify its asset base to achieve its ambitious long-term fundraising goals.

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Tikehau Capital grew assets under management by 17 percent during 2019, predominantly driven by an expansion in its real estate business which has now surpassed its private debt assets.

The Paris-based alternative assets investor had €25.8 billion of assets at the end of 2019, an increase of €3.8 billion compared with the end of 2018, after receiving a record of €4.6 billion of new money during the year and making distributions of €1.4 billion.

The firm’s private debt business grew by €300 million during the year to €8.6 billion in assets. Debt strategies saw net new money of €1.2 billion but also had significant distributions of €1 billion. The debt business closed its fourth-generation direct lending fund at the beginning of the year on €2.1 billion and closed its fifth collateralised loan obligation at €440 million during the summer.

However, the debt business is no longer the largest part of Tikehau as its real estate assets under management grew 21 percent during 2019 to €9.2 billion. In just the fourth quarter, Tikehau added €780 million to the real estate business, which increased by €1.6 billion over the whole of 2019.

The group’s private equity business remains relatively small with €2 billion of assets under management but saw rapid growth, increasing by €770 million or 67 percent. This was driven by net new money of €920 million during the year linked to fundraising of the group’s first private equity funds, which launched in 2018 and new funds launched last year.

The firm launched two cross-asset class projects during 2019, firstly a multi-asset solution for high-net-worth individuals in partnership with Fideuram – Intesa Sanpaolo Private Banking in Italy, which has raised €400 million for 3,000 private investors in Italy. It also launched a special situations vehicle which has already raised €210 million and will invest across credit, equity and real estate.

Tikehau said it is on course to meet its target of achieving more than €35 billion of assets under management by 2022.