Paris-based asset manager Tikehau Capital has been appointed to manage a €350 million state recovery fund in Belgium.
The Belgian federal government has appointed Tikehau to oversee the Belgian Recovery Fund, which will provide assistance to companies negatively affected by the Covid-19 pandemic. Tikehau was selected following a market consultation process.
The fund will grant subordinated and convertible loans over the next five years to companies operating in Belgium. The Federal Holding and Investment Company will provide €100 million for the fund with a further €250 million from institutional investors in Belgium and internationally.
Investment criteria for the fund specifies it must invest in companies that are directly or indirectly affected by covid-19 and can demonstrate they are still viable with a credible business plan. Firms must be headquartered in Belgium or have substantial amount of revenue or employees based in the country.
Tikehau will be responsible for raising additional capital commitments from institutional investors and will also commit up to €15 million from its own balance sheet.
Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, said in a statement: “Tikehau Capital is committed to playing a leading role in financing the economic recovery in Europe and we recognise the importance of this project for the Belgian economy and employment in the region. This initiative has a particular resonance for Tikehau Capital as Belgium is one of the first countries in which we established an on-the-ground presence, and we are delighted to receive the support of the Belgian government and the nation’s federal institutions.”
The Belgian government’s investment company has provided more than €400 million of support to Belgian companies.
This is the third covid recovery scheme Tikehau is participating in, having previously been selected to manage the Ace Aero Partenaires vehicle in France and Ace Aerofondo in Spain.