- €1.1 bn net new money in asset management
- €25.7 bn in assets under management as at 30 June
2020
- €1.6 bn additional assets under management in July
2020
- Confirmation of targets set for 2022
Regulatory News:
Tikehau Capital (Paris:TKO):
- The Group's assets under management as of 30 June 2020
amounted to €25.7 billion, up by 9.8% in twelve months, and up by
1.2% during the second quarter;
- The Group maintained good business momentum despite the
difficult context, with resilient net new money of +€1.1 billion
for the asset management activity in the first half, bringing
assets under management in this activity to €24.0 billion at 30
June 2020 (an increase of 13.2% in twelve months, and 2.6% up on
the second quarter);
- All Tikehau Capital’s asset classes contributed positively
to net new money in the first half, with continued ramp-up of real
estate and private equity;
- In the private debt area, Tikehau Capital has been selected
to manage Novo 2020, a new French institutional fund designed to
provide financing solutions to French medium-sized
enterprises;
- The Group kept actively managing its portfolio, and took
advantage of market conditions to dispose of 54% of its stake in
DWS, while both groups remain fully committed to pursuing their
strategic partnership;
- In July 2020, Ace Management was selected to exclusively
manage the fund to support the aerospace sector, with an initial
closing of €630 million;
- On 29 July 2020, the Group successfully raised €220 million
as part of the first closing of its fifth-generation of Direct
Lending fund and finalized the acquisition of Star America
Infrastructure Partners, representing a major step forward in the
Group's expansion in North America.
Tikehau Capital's assets under management to 30 June 2020
amounted to €25.7 billion, up by 9.8%1 in a year, an increase of
€2.3 billion. In the second quarter of 2020, assets under
management rose by €0.3 billion (up 1.2%).
The Group's assets under management to the end of June 2020
break down into €24.0 billion for the asset management activity and
€1.7 billion for the investment activity.
Antoine Flamarion, co-founder of Tikehau Capital, stated:
"Tikehau Capital demonstrated its resilience and ability to
maintain its growth momentum in the second quarter of 2020 despite
the unprecedented global impact of the Covid-19 pandemic. The
strength of our balance sheet and our entrepreneurial spirit
enabled us to embark upon and pursue new initiatives despite the
major economic slowdown. Fundraising remained at a high level in
the first half, thanks to the unwavering commitment of our teams.
Our global platform and the investment strategies we offer to our
institutional and private clients are more relevant than ever in
this uncertain economic situation. We continued our investments
during the first half and consolidated our position as a financing
provider for medium-sized enterprises in France and Europe.”
Mathieu Chabran, co-founder of Tikehau Capital, added:
“Economic uncertainty and volatility will most probably remain in
the second half of the year. Against this backdrop, the specific
characteristics of our product range, our bespoke approach to
investments and the flexibility of our teams will be key
differentiating factors. Tikehau Capital is on track to achieve its
targets to reach over €35 billion in assets under management for
the Group and generate over €100 million in net operating profit
from asset management activities by 2022."
Asset Management activity: net new
money of €1.1 billion in the first half of 2020
As at 30 June 2020, assets under management in Tikehau Capital's
asset management business amounted to €24.0 billion, up by €2.8
billion in twelve months (up 13.2%). In the second quarter of 2020,
assets under management increased by 2.6%, (+€600 million), taking
their growth over the entire first half of the year to 1.7% (+€400
million). This growth was due to:
- Resilient net new money of €1,100 million, of
which €580 million raised in the second quarter. This strong
performance, despite the critical economic and health situation,
reflects the appeal of the Group's model and investment strategies
to investors. It also reflects structurally favorable tailwinds in
favor of the market segments where the Group is positioned. Robust
commercial performance over the first six months of the year was
mostly due to strong momentum in real estate and private equity,
which attracted around 80% of net new money for the half-year,
which improves the Group's business mix and revenue
generation.
- Distributions of -€500 million over the first half,
mostly for private debt activities.
- Market effects of -€200 million, due to severe
macroeconomic downturn caused by the Covid-19 pandemic. Capital
markets strategies bore the brunt of these impacts.
At end-June 2020, Tikehau Capital has a level of dry
powder of €4.7 billion within the funds it manages, which
allows the Group to remain positioned alongside portfolio companies
and to be able to seize investment opportunities.
Private debt: €8.3 billion in assets under
management at 30 June 2020
Assets under management in private debt amounted to €8.3
billion at the end of June 2020, compared to €8.4 billion one year
earlier. In the second quarter of 2020, private debt assets under
management remained stable, with net new money of €100 million,
offset by distributions of -€150 million, mostly in relation to
direct lending activities. Market effects on private debt
activities were positive at around +€70 million over the second
quarter.
Already in charge for managing the Novo2, Novi1 and Novo 2018
French fonds de place (fund sponsored by institutional investors),
Tikehau Capital was selected during the second quarter to manage a
new fund (Novo 2020), designed to support French medium-sized
enterprises over the long term, by providing tailored senior
financing solutions against the backdrop of the current pandemic.
Through this initiative, spearheaded by insurers under the aegis of
the FFA (French Insurance Federation) and by the Caisse des Dépôts
et Consignations, Tikehau Capital collected around €60 million over
the first half and over €110 million to date, consolidating its
position as a key player in financing the real economy.
Tikehau Capital also successfully completed a second closing for
over €40 million as part of the initiative launched in partnership
with Fideuram in Italy designed to provide investment solutions on
European private markets to the Italian private bank’s private
clients.
Real Estate: €9.6 billion in assets under
management at 30 June 2020
Tikehau Capital's assets under management in real estate
grew 4.3% (+€400 million) in the first half, reaching €9.6 billion
at the end of June 2020. After a very buoyant first quarter, assets
under management were stable in the second quarter (+0.3%, or €27
million).
Net new money amounted to around €520 million in
the first half, with Sofidy continuing to perform well and the
completion, on 28 February 2020, of the final closing of the
Group's first pan-European discretionary real estate fund, which
was launched in 2018 and raised a total of €560 million.
Distribution and market effects respectively amounted
to -€65 million and -€70 million over the first half, mostly
relating to Sofidy.
On 6 April 2020, Tikehau Capital increased its investment in
IREIT Global, a real estate firm listed in Singapore focusing on
the European real estate market. This transaction was completed
under highly favourable financial conditions for the Group, with
IREIT Global's stock price rising by 51% since the
transaction2.
Private equity: €2.3 billion in assets
under management as at 30 June 2020
The Group has been successful in achieving growth in private
equity, a promising asset class, in which assets under
management rose by over 53% during the last twelve months, reaching
€2.3 billion at the end of June 2020. Assets under management
increased by around €300 million compared to 31 December 2019
(+15.0%), of which €200 million over the second quarter (+9.5%
growth).
As a leading player in financing the European economy, Tikehau
Capital is convinced that its alternative financing solutions,
particularly in equity, will be more crucial than ever in financing
economic recovery and the energy transition.
Net new money performed well, reaching €350
million over the half-year (of which €250 million in the second
quarter), driven by the success of the second generation fund for
special situations, managed by the Tactical Strategies team set up
during the fourth quarter of 2019.
The private equity fund dedicated to the energy
transition continued to fundraise in the first half. This
fund, launched in 2018 in partnership with Total, aims to offer
high returns while accelerating the transition to a low-carbon
economy. It reflects the Group's strong conviction that investing
in equity is well suited to the current environment, and an
effective approach, which places companies at the heart of a
successful energy transition.
In addition, the French government, following the submission of
a report by Mr Philippe Tibi, launched at the end of 2019 an
initiative aimed at improving the financing of French technology
companies. As part of this initiative, major French
institutional investors have committed to dedicate more than €6
billion by December 31, 2022 to enable these companies to finance
their growth. On July 29, 2020, Tikehau Capital's energy transition
fund was declared eligible for this initiative and thus confirms
the relevance of its positioning.
In April 2020, the Group also launched its first European
Long-Term Investment Fund (ELTIF) for private clients of Banca
March in Spain, which will replicate the Group's energy transition
fund. Thanks to this initiative, the Group raised €59 million over
the first half, in an extremely difficult health and economic
situation. Tikehau Capital has thereby confirmed the relevance of
its private equity strategy and continues to expand its customer
base toward private clients.
Finally, new money in the private equity segment also benefited
from an allocation in the first half from the multi-asset strategy
launched at the end of 2019 in partnership with Fideuram.
Distributions had an impact of -€120 million on assets
under management in private equity in the first half of 2020, while
market effects had no significant impact on assets under
management during the same period.
Capital markets strategies: €3.8 billion
in assets under management at 30 June 2020
The capital markets strategies business proved resilient
in a highly turbulent market during the first half. Assets under
management increased by 0.7% (+€25 million) since 31 December 2019,
with growth of 8.6% (+€300 million) in the second quarter.
Net new money amounted to €150 million in the first six
months of the year, driven by strong second-quarter performances in
fixed income as well as in flexible and equity strategies. Negative
market effects amounted to -€120 million over the half-year,
with the second-quarter markets rebound largely offsetting the
negative impacts of the first quarter.
Investment activity: assets under
management amounted to €1.7 billion at the end of June
2020
Assets under management from investment activities
amounted to €1.7 billion at the end of June 2020, compared to €2.2
billion at the end of December 2019.
This €500 million decrease recorded over the first half
of 2020 was principally due to the following elements:
- Tikehau Capital has committed around €140 million to its
funds, in line with its strategy of alignment of interests;
- The impacts of dividend payments amount to approximately €80
million;
- Negative market effects on the Group's direct investment
portfolio amounted to around -€70 million over the half-year
(mostly as a result of listed investments), a negative impact of
around 8%, of which -€170 million in the first quarter, followed by
a positive impact of €100 million in the second quarter. The
positive market effects recorded in the second quarter were offset
by a negative impact -€165 million related to the financial
instruments set up by the Group as part of its risk management
policy, at a time when the global economy was facing a major
systemic risk. These instruments can be regarded as hedging tools
for the Group’s investment portfolio, particularly for its listed
component, in the face of uncertainty levels which remain very high
in light of the future development of the health crisis and
financial markets over the coming quarters. The costs relating to
these instruments will have a negative impact on the Group's
financial statements to 30 June 2020, in line with the impact on
its assets under management.
Active rotation of the investment
portfolio in the first half
With a total of 210 investment lines as at 30 June 2020, Tikehau
Capital's consolidated portfolio benefits from a high
level of diversity in terms of asset types, a high level of
granularity and increasing exposure to its own asset management
strategies.
At the end of June 2020, 65% of Tikehau Capital's
portfolio was exposed to its own funds (compared to 61% at the end
of December 2019), in line with the Group’s targets. This approach
has a dual advantage for the Group, as it aligns its interests with
those of its investor clients, and it provides more recurring
revenue streams. As such, the impact of the fair value adjustments
to the Group's investments in its funds was limited to around -3%
over the first six months of the year, despite a particularly
difficult and volatile market environment.
Since January 1st, Tikehau Capital has also actively pursued the
rotation of its direct investment portfolio. Thus, the Group took
advantage of market conditions to sell 54% of its stake in the
German asset management company DWS, generating total
proceeds of €110 million. Meanwhile, Tikehau Capital and DWS are
also continuing to roll-out their strategic partnership, the spirit
and nature of which remaining unchanged, with several joint
projects and initiatives currently under development.
In addition, the Group has been informed by Conforama, a
major player in household equipment in Europe, of the upcoming
repayment of the €115m loan it provided to the company in early
2018, partly funded by Tikehau Capital's balance sheet and partly
by several funds managed by the Group.
Outlook
Tikehau Capital is fully up and running to achieve its 2022
targets to reach over €35 billion in assets under management for
the Group and to generate more than €100 million in net operating
profit from asset management.
Throughout July 2020, the Group has continued to deliver on its
strategy and has achieved major commercial successes. This has
enabled Tikehau Capital to recognize €1.6 billion of additional
assets under management since the end of June 2020, of which €1.1
billion organically, an amount equivalent to net new money for the
entire first half of the year, and €0.5 billion in external
growth:
- In the field of private equity, Ace Management, a
private equity firm and a subsidiary of Tikehau Capital
specialising in the industrial and technological sectors, recorded
a major success in July 2020. Following a call for tender process
organised by the leading aerospace players (Airbus, Safran, Thales,
Dassault Aviation) with the support of the French State, in
particular through BPI France, Ace Management was selected to
exclusively manage a fund to support the aerospace industry. The
aim of this fund will be to shore up the equity of all key
subcontractors in the industry and to facilitate the consolidation
of a sector of excellence of the French industry. A first €630
million closing of the fund already took place. Tikehau Capital has
invested €230 million via its balance sheet as part of this fund’s
first closing, in line with its alignment of interests
strategy;
- In the field of private debt, the Group successfully
raised €220 million of commitments as part of the first closing of
the fifth generation of its Direct Lending fund. In line with its
strategy to align interests with its investor clients, Tikehau
Capital contributed to this first closing, committing €60 million
via its own balance sheet. As a pioneer in Europe on the private
debt market, the Group is an expert in the European Direct Lending
segment. The fourth-generation fund raised a total of €2.1 billion,
over three times higher than the previous generation. The
fifth-generation fund will provide Tikehau Capital and its
investor-clients with renewed resources to support European SMEs,
by offering them a wide range of tailored financing solutions.
- In addition, a French institutional investor also granted
Tikehau Capital a €150 million management mandate to invest in
several strategies developed by the Group, principally in
private debt. This mandate takes the form of a closed-ended
evergreen fund, i.e. one with an unlimited lifespan, a first for
Tikehau Capital in the field of private debt.
- Tikehau Capital also raised an additional € 55 million as part
of the Novo 2020 fund, which the Group had obtained
management during the first half of the year.
- Lastly, on 29 July 2020 the Group finalised the acquisition of
100% of the share capital of Star America Infrastructure Partners,
an independent US asset management company which develops and
manages medium-sized infrastructure projects in North
America with c.$600 million (€535 million3) of assets under
management. This acquisition enables Tikehau Capital to diversify
its assets under management towards a new promising asset class and
boost its strategy to expand in North America. The acquisition
price has been paid partly in cash and partly in shares. The terms
of the transaction also include the payment of a potential earn-out
in 2021.
Given the ongoing extremely depressed global economic situation
and high levels of uncertainty, Tikehau Capital remains very
prudent with regards to market developments in the coming quarters.
The Group believes that the current financial market levels do not
fully reflect the profound impact that the Covid-19 pandemic will
have on the real economy in the short and medium terms. There
remains a high degree of uncertainty as to how the pandemic will
develop, and major risks will continue to weigh heavily on global
economic growth and companies’ health over the coming quarters.
In this context, Tikehau Capital's business model sets it
apart, and is based on high levels of shareholders’ equity,
invested as a priority in its various asset management strategies,
alongside its investor clients. In addition to ensuring an
unparalleled alignment between the interests of the Group and those
of its investor clients, this approach gives the Group firepower to
cope with adverse market conditions.
Share buyback programme
Tikehau Capital is extending until 17 September 2020 the mandate
granted to an investment services provider for the repurchase of
shares under its buyback programme authorised by the Annual General
Meeting of Shareholders of 19 May 2020.
The shares repurchased will be used for external growth, merger,
spin-off or investment transactions, within the limit of 5% of the
share capital in accordance with the law.
The terms of the share buyback programme remain unchanged. A
description of the share buyback programme (which appears in
paragraph 8.3.4 of the Tikehau Capital Registration Document filed
by the Autorité des marchés financiers (French Financial Markets
Authority) on 14 April 2020 under number D. 20-0290) is available
on the Company's website under the "Regulatory information"
section.
(https://www.tikehaucapital.com/fr/shareholders/regulatory-information).
Calendar
17 September 2020 – 2020 half-year results 5 November
2020 – Assets under management at end-September 2020
Detail of change in assets under
management for asset management activities4
First half 2020 (€m)
Net new money *
Distributions
Market effects5
AuM change
AuM as at 30/06/2020
(€m)
Private debt
+65
(307)
(62)
(304)
8,329
Real Estate
+520
(67)
(70)
+383
9,560
Capital Markets Strategies
+153
(10)
(117)
+25
3,836
Private Equity
+351
(120)
+50
+281
2,296
Total asset under management
+1,089
(504)
(200)
+386
24,021
*The net new money by business line takes into account internal
reallocations from multi-asset strategies, in particular funds
raised through the partnership with Fideuram, which were initially
recognised as private debt and have been progressively deployed
across the Group's different asset classes. Therefore, in the first
half, the impacts are: -€91 million in net new money in private
debt, +€45 million in real estate and +€46million in private
equity.
Q2 2020 (€m)
Net new money *
Distributions
Market effects5
AuM change
AuM as at 30/06/2020
(€m)
Private debt
+103
(148)
+71
+26
8,329
Real Estate
+81
(30)
(23)
+27
9,560
Capital Markets Strategies
+148
(9)
+182
+321
3,836
Private Equity
+250
(120)
+76
+206
2,296
Total asset management
+582
(306)
+306
+581
24,021
*The net new money by business line takes into account internal
reallocations from multi-asset strategies, in particular funds
raised through the partnership with Fideuram, which were initially
recognised as private debt and have been progressively deployed
across the Group's different asset classes. Therefore, in the first
half, the impacts are: -€5 million in net new money in private debt
and +€5 million in private equity.
Breakdown of assets under management as
at 30 June 20206
Assets under management as at
30/06/2020
Change compared to
30/06/2019
Change compared to
31/12/2019
Amounts (€m)
Weight (%)
In %
In €m
In %
In €m
Private debt
8,329
32%
-1%
-80
-4%
-304
Real Estate
9,560
37%
19%
1,511
4%
383
Capital Markets Strategies
3,836
15%
15%
506
1%
25
Private Equity (a)
2,296
9%
58%
839
14%
281
Asset management activity
24,021
93%
13%
2,775
2%
386
Investment activities* (b)
1,683
7%
-20%
-424
-23%
-490
Total assets under management
25,704
100%
10%
2,351
0%
-104
Total Private Equity (a+b)
3,979
15%
12%
415
-5%
-209
* For own account
About Tikehau Capital:
Tikehau Capital is an asset management and investment group with
€25.7 billion of assets under management (as at 30 June 2020) and
shareholders’ equity of €3.1 billion (as at 31 December 2019). The
Group invests in various asset classes (private debt, real estate,
private equity, capital markets strategies), including through its
asset management subsidiaries, on behalf of institutional and
private investors. Controlled by its managers, alongside leading
institutional partners, Tikehau Capital employs more than 530 staff
(as at 31 December 2019) in its current offices in Paris, London,
Amsterdam, Brussels, Luxembourg, Madrid, Milan, New York, Seoul,
Singapore and Tokyo.
Tikehau Capital is listed on the Euronext Paris regulated
market, Compartment A (ISIN code: FR0013230612; Ticker:
TKO.FP).
DISCLAIMER:
This document is not an offer of securities for sale or
investment advisory services. This document contains general
information only and is not intended to represent general or
specific investment advice. Past performance is not a reliable
indicator of future results and targets are not guaranteed.
Certain statements and forecasted data are based on current
expectations, current market and economic conditions, estimates,
projections, opinions and beliefs of Tikehau Capital and/or its
affiliates. Due to various risks and uncertainties, actual results
may differ materially from those reflected or contemplated in such
forward-looking statements or in any of the case studies or
forecasts. All references to Tikehau Capital’s advisory activities
in the U.S. or with respect to U.S. persons relates to Tikehau
Capital North America.
1The figures shown have been rounded for presentation purposes,
which in some cases may result in rounding differences. 2Based on a
unit price for IREIT Global of SGD0.74 on 29 July 2020. 3 Based on
a $/€ exchange rate of 0.89 as of 30 June 2020. 4The figures shown
are the Group’s best estimates to the end of June 2020 and may
change slightly. They have been rounded for presentation purposes,
which in some cases may result in rounding differences. 5 Including
non-material scope changes. 6 The figures shown are the Group’s
best estimates to the end of June 2020 and may change slightly.
They have been rounded for presentation purposes, which in some
cases may result in rounding differences.
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version on businesswire.com: https://www.businesswire.com/news/home/20200729006144/en/
Press : Tikehau Capital:
Valérie Sueur – +33 1 40 06 39 30 France - Image 7: Florence Coupry
& Juliette Mouraret – +33 1 53 70 74 70 UK - Finsbury: Arnaud
Salla & Charles O’Brien – +44 207 251 3801 USA - Prosek
Partners: Trevor Gibbons – +1 646 818 9238
press@tikehaucapital.com
Shareholders and Investors:
Louis Igonet – +33 1 40 06 11 11
shareholders@tikehaucapital.com
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