Private market strategies continue to deliver for Tikehau Capital, with executives expressing confidence in the firm’s future growth prospects following asset growth of 19% year over year to €36.4 billion ($35.7 billion).
The Paris-based multi-strategy alternative investment firm in its third quarter earnings report, commented on the resilient fundraising momentum and investor appetite for downside protection it continues to see among clients. Executives stressed that the firm is close to reaching its year end goal €37 billion in assets.
In July, Tikehau raised a record €3.3 billion for the fifth generation of its direct lending strategy. Tikehau Direct Lending V (TDL V) raised 57% more than the firm’s previous vintage that closed in 2019 and represented a 35% increase in the commitments received outside of Europe, officials said at the time.
In the third quarter fundraising momentum remained solid in other asset cases as well with net inflows reaching €4.8 billion, which is a 62% increase year over year.
Capital deployment totaled €4.9 billion for the first nine months of 2022 and remains healthy, officials said. Private debt funds were the main contributors accounting for 59% of capital put to work. Private equity funds accounted for 24%, while real assets made up 17% of the total assets deployed.
Officials plan to keep deploying capital in a worsening macroeconomic context. Tikehau successfully completed CLO issuances both in Europe and the US, kept a granular and disciplined deployment pace notably through Sofidy real estate funds and carried out multiple acquisitions within its aerospace and cybersecurity strategies.
As of Sept. 30, the group had dry powder of €5.8 billion (on par with that of last quarter) within the funds it manages, enabling them to capture attractive investment opportunities as and when they arise.