Tikehau to launch impact and secondary debt strategies this year

The fund manager continued to raise capital during a difficult Q2 and reveals plans for the latter half of 2020.

Paris-based fund manager Tikehau Capital has revealed plans to launch two new private debt strategies this year targeting secondaries and impact lending.

In its H1 2020 results, published today, the fund manager said it has plans to launch several strategies in the second half of the year including private debt and capital markets strategies covering impact lending, secondary private debt and long-term equity. Details of vehicles linked to these strategies have not yet been revealed.

The group said it has continued to grow its assets under management despite lockdowns being imposed across much of Europe during the second quarter. Year-on-year AUM growth was 9.8 percent, bringing its total to €25.7 billion, with Q2 growth of 1.2 percent.

Tikehau also revealed it had a significant €4.7 billion pile of dry powder at the end of June 2020, which it said will allow it to take advantage of investment opportunities. It has continued to deploy capital during the covid-19 pandemic with investments in the first half of €0.8 billion, though this is down on the €1.5 billion deployed in the same period last year.

The firm’s asset management division, which represents €24 billion of its assets under management, saw operating profit climb by 39.5 percent and revenues up 16.3 percent. Its smaller investment division saw revenues fall by €77.2 million and an operating loss due to adverse market conditions caused by the pandemic.

Tikehau said it will continue to integrate acquisitions it has made, including Star America Infrastructure Partners, a US-based infrastructure asset manager it purchased in July 2020.

The firm added that its fundraising targets remain on track and it hopes to reach more than €27.5 billion in assets by the end of the year and will aim for €35 billion by the end of 2022.