France-headquartered alternatives investor Tikehau Capital saw deployment jump by 24 percent during 2022, according to the firm’s full-year results.
Tikehau said it has benefited from scarcity of debt availability allowing it to significantly increase deployment while maintaining credit discipline. Overall the business deployed €6.9 billion during 2022, up from €5.5 billion in 2021, with private debt accounting for 63 percent of capital deployed.
Despite its increased deployment rate, the firm also saw dry powder grow from €5.8 billion on 30 September 2022 to €6.1 billion on 31 December 2022 as it increased its overall assets under management to €38.8 billion.
The firm also increased its realisations in the year to €1.8 billion, up from €1.5 billion in 2021, with private debt exits accounting for €1 billion, followed by real assets at €500 million and private equity at €300 million.
Among private debt, direct lending strategies accounted for approximately 60 percent of realisations. Tikehau gave examples such as the repayment of a mezzanine facility by French electricals specialist Vulcanic which generated gross IRR of 14 percent and a multiple of 1.2x.
Debt accounted for 52 percent of the group’s fundraising activities in 2022, which included the final close of its fifth-generation direct lending fund, which raised €3.3 billion.
The group’s total management fees reached €294 million last year, up 11 percent compared to 2021 as fee-paying AUM grew 11 percent to €31.4 billion. The firm’s portfolio revenue was €298 million, driven primarily by investments made in its own funds and strategies. The firm has proposed a dividend of €0.7 per share in 2022, up 17 percent from €0.6 in 2021. Tikehau Capital is also extending its share buyback scheme until 20 April 2023.
Looking forward, Tikehau said it will continue to broaden its client base and expand its geographical footprint as its works towards its long-term AUM target of €65 billion by 2026.
The firm also announced that its main shareholder, Tikehau Capital Advisors, has received a substantial equity investment from Patrinvest subsidiary SFI, worth €400 million. The transaction will see SFI become one of its largest individual shareholders with an indirect ownership of 9.3 percent in Tikehau Capital.
SFI will be represented on TCA’s board of directors and its supervisory board.
In a statement, Tikehau co-founders Antoine Flamarion and Mathieu Chabran, said: “We have a long-standing relationship of trust and share the same entrepreneurial DNA and common values with its [SFI’s] shareholders and leaders. We are confident that SFI will act as a key partner for the future development of both TCA and Tikehau Capital, given its proven skills and deep experience in the investment field.”
SFI was advised by Evercore, Bredin Prat and PricewaterhouseCoopers, while TCA was advised by Rothschild & Co and Cleary Gottlieb.