A growth model that accelerates
Regulatory News:
Tikehau Capital (Paris:TKO):
€42.8bn1
€6.5bn
+19%
Asset Management AuM at 31
December 2023
Net new money in 2023
AuM from international clients
YoY growth
+13%
€177m
€0.75
Core Fee-related earnings YoY
growth2
Net income, Group share in
2023
Proposed dividend per share3
Tikehau Capital delivered on all aspects of its strategy in
2023
- Record level of net new money at €6.5bn, an
amount 37% above the 2017-22 average
- Asset Management AuM, up 13% yoy, reaching €42.8bn at 31
December 2023 (26% CAGR since 2016)
- Sound deployment level at €5.9bn, with a focus on asset
selectivity, megatrends and downside protection
- Strong performance delivered on value-creating exits
across asset classes
- Active franchise expansion and recognition globally,
with 54%4 of net new money from international investors5
- Continued progress in expanding the Group’s
sustainability-themed and impact platform
Strong financial performance year-over-year
- 11% year-over-year growth in Fee-Paying and Future
Fee-Paying AuM securing incremental long-term revenues
- Core Fee-Related Earnings (Core FRE)2 of €123m, a 13%
growth yoy, representing a 39.4% margin
- Increasing contribution from Tikehau Capital strategies
to realized investment portfolio revenues
- Net income of €177m in 2023 and €105m in H2 2023 (up
144% compared to H2 2022)
- Dividend proposition of €0.75 per share, up 7% vs.
2022
Tikehau Capital is ideally positioned to capture future
growth
- Strong and compounding balance sheet with €3.1bn
invested in Tikehau Capital’s strategies
- Healthy fundraising pipeline ahead across asset
classes
- Confirmation of 2026 targets, with the additional objective
to reach c.€500m of net profit, Group share
Antoine Flamarion and Mathieu Chabran, co-founders of
Tikehau Capital, said:
“In 2023, Tikehau Capital showed remarkable resilience and
adaptability. Our multi-local presence, built over the past two
decades, allowed us to expand our franchise and onboard new
investors from key regions of growth. This internationalization
sets the stage for our future growth, bolstered by a robust and
compounding balance sheet, a healthy pipeline of fundraising
activities and a clear trajectory towards achieving our 2026
targets.
As we reflect on the achievements of 2023, we extend our
gratitude to our teams for the pivotal role they have played. Their
commitment ensures our readiness to seize opportunities in a
dynamic market.”
“Our multi-local presence, built over the past
two decades, allowed us to expand our franchise and onboard new
investors from key areas of growth.”
Key operating metrics
4th quarter
Full year
YoY change
In €bn, AM perimeter
2022
2023
2022
2023
Capital deployment
2.0
1.7
6.9
5.9
(15
%)
Realizations6
0.4
1.0
1.8
2.4
+33%
Net new money (NNM)
2.1
1.8
6.4
6.5
+2%
31-Dec-2016
31-Dec-2022
31-Dec-2023
2016-23 CAGR7
Group AuM
€bn
10.0
38.8
43.2
+23%
Asset Management AuM
€bn
8.6
37.8
42.8
+26%
Fee-paying AuM
€bn
6.0
31.4
34.9
+29%
Management fees and others
€m
38.6
293.5
312.3
+35%
Asset Management revenues
€m
39.4
303.9
322.3
+35%
Core Fee-Related earnings (FRE)
€m
2.7
108.6
123.0
+73%
Fee-related earnings (FRE)
€m
2.7
96.5
106.8
+69%
Asset Management EBIT
€m
3.5
107.0
116.8
+65%
Investment portfolio
€bn
0.9
3.5
3.9
+23%
Net result, Group share
€m
124.6
320.2
176.7
+5%
Shareholders’ equity
€m
1,512
3,144
3,184
n.a
Company
presentation
A presentation for investors and analysts will
be held at 9:00am GMT / 10:00am CET today and will be broadcasted
live. To watch the presentation, please connect via the following
link
A recording of the presentation will be
available on Tikehau Capital’s website later in the day.
Financial calendar
23 April 2024
Q1 2024 announcement (after market
close)
6 May 2024
Annual General Meeting
30 July 2024
2024 half-year results (after market
close) Management presentation to be held via audiocast
22 October 2024
Q3 2024 announcement (after market
close)
The Tikehau Capital Supervisory Board met on 5
March 2024 to review the consolidated financial statements8 at 31
December 2023.
OPERATING REVIEW
In 2023, Tikehau Capital continued to reap the benefits of its
growth strategy as well as its robust franchise, built over the
past two decades.
Tikehau Capital’s Asset Management activity delivered solid
positive flywheel effect throughout the year:
- Capital deployment was healthy while remaining
particularly selective. The firm’s closed-end funds deployed
€5.9bn in 2023, with an acceleration in the second half of
the year, driven by private debt and megatrend investing and a
continued focus on downside protection.
- Investment teams remained laser-focused on selectivity, as
evidenced by an exclusion rate maintained at a high level,
reaching 98% in 2023 (vs. 97% in 2022).
- At 31 December 2023, the funds managed by Tikehau Capital had
€6.9bn of dry powder9 (+13% compared to 31 December
2022), allowing them to capture attractive investment
opportunities.
- Realizations within the firm’s closed-end funds amounted
to €2.4bn10, a 33% year-over-year growth, reflecting the
firm’s solid market positioning. Fund performance was robust across
asset classes, reflecting the quality and defensiveness of the
firm’s portfolios of companies and assets.
- Levels of leverage remained limited for portfolio
companies within the firm’s Direct Lending strategies and across
the firm’s Real Estate strategies with weighted average net
leverage ratio of 4.4x11 at closing and average loan-to-value
levels standing at around 24%12 respectively.
- Portfolios of Real Estate assets remained highly
granular with a balanced and diversified exposure to underlying
sectors and geographies while maintaining a high level of financial
occupancy rate of around 95% across Real Estate strategies.
- Companies within the firm’s Private Equity strategies continued
to generate solid revenue and profitability growth and
recorded, on average over the last 12 months, revenue growth of 22%
and EBITDA growth of 23%.
- Tikehau Capital recorded an unprecedented level of
client demand, reflecting the firm’s robust commercial activity
driven by its multi-local and diversified platform.
- The firm attracted record levels of gross and net inflows for
its Asset Management business reaching €8.8bn of gross new
money and €6.5bn of net new money, a 37% growth
compared to the average 2017-22 level.
- The firm continued to successfully carry out the
diversification of capital formation across:
− Asset classes, with a combination of
flagship strategies as well as adjacencies and innovations.
Tikehau Capital saw solid development for its
Yield strategies across fund types and expertise, driven by
Direct Lending, Credit Secondaries, CLOs, fixed income and dated
funds as well as the launch of a Real Estate Credit strategy, in
partnership with Altarea. The firm benefitted from additional
commitments for its Value-Add strategies, which are
positioned on megatrends and themes poised for sustainable growth,
such as Private Equity Decarbonization, Regenerative Agriculture,
Cybersecurity and Special Opportunities.
− Geographies, with many successes
recorded in Asia, Europe, Middle East and North America.
International investors accounted for 54%
of net inflows13 in 2023 and 39% of Asset Management AuM
at 31 December 2023.
The firm continued to onboard high-profile
partners globally, notably in Asia. Within its European CLO
business, Tikehau Capital successfully secured the commitment of a
leading Japanese institutional investor. In addition, in December
2023, Tikehau Capital announced having entered into advanced
discussion in Japan with Nikko Asset Management14, one of
Asia’s largest asset managers, with a view to forming a business
and capital alliance. In February 2024, Tikehau Capital announced a
regional partnership with UOB-Kay Hian15, the
Singapore-based largest stockbroker in Southeast Asia, to jointly
launch an Asia Pacific Credit strategy to tap Asia’s fast-growing
private credit market. Both strategic collaborations reflect
Tikehau Capital’s strategy to continue to expand its global
footprint, particularly across Asia, deepening its presence in a
region where it has 10 years of operating history and addressing
underpenetrated markets. The opening of an office in
Hong-Kong is considered as a next step to allow the firm to
expand its local presence and build new institutional client
relationships in the region.
In North America, six years after
establishing a presence in New York and having launched four
complementary strategies, Tikehau Capital is opening its 16th
office in Montreal, to continue to build its strong local
presence in Québec and accelerated its expansion in Canada.
In 2023, the firm continued to reinforce its
presence in the MENA region with, in particular, the opening
of an office in Abu Dhabi. Tikehau Capital has also been entrusted
with the management of a €200m multi-asset mandate from a large
Middle East sovereign wealth fund. In Israel, the firm benefits
from a blue-chip institutional investor base, with cross asset
class fundraising capabilities. Since inception in 2021, the Tel
Aviv office attracted c. €1bn of AuM from Israeli investors.
− Client types, with additional progress
in democratizing private markets with strategic partners.
The firm’s private debt unit-linked
products launched with MACSF, Société Générale Assurances and
Suravenir continued to benefit from robust momentum and attracted
c. €1bn since inception and approximately €450m of inflows in
2023.
With the objective to further address private
investors’ demand to access private markets, Tikehau Capital
launched in Q4 2023 a Private Equity fund of funds providing
private wealth investors and high-net worth individuals with the
opportunity to invest in the firm’s Private Equity strategies and
its ecosystem. This new initiative aims for €400m of total
commitments.
Private investors accounted for 29% of
net inflows16 in 2023 and 27% of Asset Management AuM at 31
December 2023.
In 2023, Tikehau Capital continued to use its flexible and
compounding balance sheet to support the expansion of its Asset
Management activity while ensuring alignment of interests with its
shareholders and LPs. In particular, initial commitments from the
firm’s balance sheet allowed Tikehau Capital to:
- Launch strategic adjacencies (Real Estate Credit) and
new initiatives (Private Equity fund of funds);
- Launch new vintages of more established and scaling
strategies (such as Direct Lending, Cybersecurity,
Decarbonization, Credit Secondaries and CLOs).
In addition, the firm’s balance sheet played a facilitating role
in executing milestone transactions, particularly within the credit
secondaries space, leading to the successful onboarding of its
second Chinese LP for an investment totaling c.$100m in
2023.
At 31 December 2023, Tikehau Capital’s balance sheet
investment portfolio reached €3.9bn, compared to €3.5bn at
31 December 2022. The firm’s investment portfolio is primarily
comprised of investments in the Asset Management strategies
developed and managed by the firm for €3.1bn (79% of total
portfolio17), generating a high alignment of interests with its
investor-clients. 21% of the portfolio or €0.9bn, is
invested in ecosystem and direct investments, notably direct
private equity investments, co-investments or investments in
third-party funds, complementary to the Group’s asset management
strategies. These investments aim at generating strong returns for
the firm while serving its asset management franchise globally.
Tikehau Capital’s investment portfolio benefits from a high
level of diversification and granularity with more than 300
investments spread across several industry sectors and geographies,
thus complementing the firm’s Asset Management activity exposure.
On top of generating continued alignment of interests with
investor-clients, the firm’s investment portfolio also allows the
firm to foster opportunities and long-term relationships with
partners.
CONTINUED ACHIEVEMENTS ON SUSTAINABILITY
- Following its commitment set in 2021 to support the goal of
achieving net zero greenhouse gas emissions by 2050 or sooner, in
line with global efforts to limit global warming to 1.5°C, Tikehau
Capital finalized its Net Zero Asset Manager targets in
March 2023. The firm has made an initial commitment to manage close
to 40% of its AuM in line with this net zero goal. For Real
Estate assets, the Group aims at improving energy and carbon
intensity, with a focus on its assets in France. With regards to
Private Equity, Private Debt and Capital Markets Strategies,
the commitment involves financing companies that are setting
decarbonization commitments and making progress towards their
low-carbon transition. The proportion of AuM to be managed in line
with net zero is intended to increase over time as new funds are
launched with net zero strategies.
- In addition, Tikehau Capital has been actively developing
dedicated sustainability-themed and impact strategies to finance
companies contributing to address key structural issues such as
decarbonization, nature & biodiversity, cyber security and
resilience. At 31 December 2023, the AuM for Tikehau Capital's
sustainability-themed and impact platform dedicated to
investments in companies amounted to €4.3bn, of which €3.0bn was
specifically allocated to climate and biodiversity to enable
transition at scale. This puts Tikehau Capital on track to reach
its target of exceeding €5bn by 2025. Additionally, over the past
two years, the firm's real estate investment and ESG teams
collaborated closely to launch and fortify a platform, amounting to
€7.4bn in funds earmarked for sustainable cities.
FINANCIAL REVIEW
- Continued increase in Fee-paying AuM, securing recurring
long-term management fee generation
- Management fees18 reached €312m in 2023, up 6% compared
to 2022, driven by the continued progression in fee-paying AuM in
2023.
- Fee-paying AuM amounted to €34.9bn at 31 December 2023,
up 11% year-over-year, notably driven by Private Debt funds which
have been particularly dynamic in both fundraising and deployment
in Direct Lending, CLOs and Secondaries strategies, as well as
inflows for Private Equity funds and Capital Markets
Strategies.
- Average management fee rate stood at 0.94% in 2023, a
slight decrease compared to 2022 (-0.04%), reflecting fundraising
mix as well as calendar effects.
- Performance-related revenues amounted to €10m in 2023.
They include various contributions from several historical
mid-sized private equity and private debt vehicles, as well as
first contributions from the firm’s third vintage of Direct Lending
strategy (€4m). Performance-related revenues represent a
significant value-creation driver embedded in Tikehau Capital’s
operating model with, at 31 December 2023, €19.6bn of AuM
eligible to carried interest. This profit engine is not yet
fully crystallized in its financial statements, given the firm’s
conservative accounting policy. The Group’s funds have provisioned
approximately €180m19 of carried interest. This amount only
reflects a portion of the long-term value creation potential linked
to this type of revenue and will increase as the funds approach
their maturity and crystallize performance.
- As a result, asset management revenue increased by 6%,
reaching €322m in 2023.
- Operating leverage ramped up in 2023 driven by scalability
and disciplined cost management
- Asset management operating expenses20 amounted to €189m
in 2023, up 2% compared to 2022, with personnel expenses accounting
for c.70% of operating expenses. This modest growth reflects
selective investments carried out by the firm in 2023 to strengthen
its asset management teams and its multi-local platform as well as
the launch of initiatives to support future growth, coupled with
efficient cost management.
- Core Fee-Related Earnings21 (Core FRE) amounted to €123m in
2023, up 13% compared to 2022, mainly driven by management fees
growth and cost discipline. Core FRE margin reached 39% in 2023
(vs. 37% in 2022). In H2 2023, Core FRE grew 18% compared to H1
2023, reflecting disciplined cost management. Core FRE margin
reached 43% in H2 2023 compared to 36% in H1 2023 and 41% in H2
2022.
- Fee-Related earnings (FRE) stood at €107m in 2023, up
11% compared to 2022. FRE margin reached 34% compared to 33% a year
ago.
- Performance-related earnings (PRE) amounted to €10m in
2023. This amount is equal to performance-related revenues and
thus reflects the 100% conversion of such revenues into
profit.
- As a consequence, EBIT for the asset management
business, which corresponds to the sum of FRE and PRE, amounted to
€117m in 2023, up 9% compared to a year ago.
- Increasing contribution from Tikehau Capital strategies to
realized investment portfolio revenues
- Tikehau Capital’s investment portfolio generated €179m of
revenues in 2023, primarily driven by the investments the Group
has made in its own funds and strategies. The firm’s asset
management strategies’ contribution to total portfolio revenues
reached €179m and increased by 4% year-over-year and by 10%
compared to 2021. Those revenue streams will continue to grow as
the Group’s balance sheet invests in its own strategies and
benefits from the associated returns.
- Portfolio revenues were mainly comprised of realized
revenues, which stood at €190m in 2023. Realized revenues were
driven by a 4% growth in dividends, coupons, and distributions,
mainly coming from the firm’s own asset management strategies. The
contribution from the firm’s own asset management strategies to
realized revenues reached €168m, representing 88% of total realized
revenues (vs. 71% in 2022) and increased by 21% year-over-year. The
firm’s Private Debt and Real Assets strategies were the main
contributors to realized revenues in 2023.
- Unrealized revenues stood at €(10)m in 2023 with €11m of
positive unrealized revenues from the firm’s asset management
strategies offset by €(21)m of unrealized revenues from ecosystem
and direct investments. Unrealized revenues in 2023 include
positive contributions from the firm’s Private Equity and Special
Opportunities strategies, offset mainly by €/$ FX impacts and mark
to market effects on the firm’s listed REITs. Of note, 2022
unrealized revenues offered a high basis of comparison as they
included c.€150m of positive impact from €/$ FX effect and positive
change in fair value for the firm’s co-investment in the US media
group Univision.
- Acceleration of profit generation in the second half of the
year
- Financial result reached €(40)m in 2023, compared to
€0.2m in 2022, which benefited from positive changes in swaps fair
value offsetting financial interests linked to the firm’s financial
debt.
- After taking into account stable corporate expenses at €(64)m,
€(0.6)m of result from non-recurring and other items, €(15)m of tax
expense, and €0.1m of minority interests, net result, Group
share, reached €177m in 2023. Net profit, Group share grew
materially over the second half of the year, reaching €105m
(compared to €72m in H1 2023), reflecting higher net profit
generation for both Asset Management and Investment
activities.
- A robust balance sheet with substantial skin in the game
- At 31 December 2023, consolidated shareholders’ equity,
Group share reached €3.2bn and consolidated cash position reached
€0.2bn, compared to €0.5bn at end-December 2022, reflecting the
investments carried out over the period. The Group also benefits
from an undrawn revolving credit facility, which has been increased
to €800m in March 2022 with a maturity extended to July 2028.
- Financial debt at 31 December 2023 was stable and
reached €1.5bn, with a gearing ratio of 46%. ESG-linked debt
accounted for 78% of the Group’s total debt at 31 December 2023.
The firm has decided to exercise its pre-maturity call option with
respect to all outstanding 3% bonds due 27 November 2023 issued on
27 November 2017. The redemption date occurred on 28 August 202322.
Moreover, in September 2023, Tikehau Capital successfully priced a
new sustainable bond issue for €300m maturing in March 203023. This
issue of senior unsecured sustainable bond is associated with a
fixed annual coupon of 6.625%.
- In Q2 2023, the financial ratings agencies Fitch Ratings and
S&P Global Ratings both confirmed Tikehau Capital’s Investment
Grade credit rating (BBB-) with a stable outlook, confirming
the strength of the firm's financial profile.
- Dividend proposition of €0.75 per share for 2023
- A dividend pay-out of €0.75 per share for 2023 will be
submitted to the General Shareholders’ Meeting due to take place on
6 May 2024, which is 7% increase compared to the €0.70 reference
dividend distributed in 2022. This is in line with the Group’s
guidance to distribute to shareholders more than 80% of the EBIT of
the asset management business.
- Pending the approval from the General Shareholders’ Meeting,
the ex-date will be 9 May 2024, and the payment will take place on
13 May 2024.
SHARE BUY-BACK
- Tikehau Capital announces it has extended until 23 April 2024
(included), date of the Group’s Q1 2024 announcement, the share
buy-back mandate, which was signed and announced on 19 March 2020
and extended until today.
- As of 5 March 2023, 5,596,124 shares were repurchased under the
share buy-back mandate. The description of the share buy-back
program (published in paragraph 8.3.4 of the Tikehau Capital
Universal Registration Document filed with the French Financial
Markets Authority on 21 March 2023 under number D. 23-0120) is
available on the company’s website in the Regulated Information
section
(https://www.tikehaucapital.com/en/finance/regulatory-information).
GOVERNANCE AND MANAGEMENT
Tikehau Capital announces the following updates concerning its
Supervisory Board, which will be proposed to the next General
Shareholders’ Meeting to take place on 6 May 2024:
- Troismer (represented by Mr Léon Seynave) will
not seek renewal of its office. Tikehau Capital and the Supervisory
Board thank him for his invaluable contribution since the IPO. The
candidacy of François Pauly, Chairman of Compagnie financière La
Luxembourgeoise, will be proposed as a member of the Supervisory
Board of Tikehau Capital. Mr Pauly qualifies as independent board
member.
- The renewals of the offices of Crédit Mutuel Arkea
(represented by Sophie Coulon-Renouvel) and Mr Jean-Louis
Charon will be proposed to the next General Shareholders’
Meeting.
These evolutions reflect Tikehau Capital’s ongoing commitment to
fostering a diverse, skilled, and engaged Supervisory Board that
effectively oversees the strategic direction and performance of the
firm.
Tikehau Capital today announces several key management changes
aimed at strengthening its executive team and positioning the firm
for continued growth and success in the alternative space.
- After 3 years of dedicated service, Cécile Cabanis,
Deputy CEO of Tikehau Capital, will be transitioning to a
non-executive position by joining the board of directors of Tikehau
Capital Advisors (Tikehau Capital’s controlling entity). Cécile has
played a pivotal role in shaping Tikehau Capital’s impact and
sustainability platform, and her insights and leadership will
continue to be valued in her new capacity. Henri Marcoux, Deputy
CEO, will assume Cécile’s previous responsibilities on ESG. This
change will be effective 31 March 2024.
- Arnaud Attia has been promoted Chief Operating
Officer (COO) of Tikehau Investment Management (TIM), reporting
to Henri Marcoux, Deputy CEO of Tikehau Capital. Arnaud joined
Tikehau Capital as Internal Audit Director in November 2018, after
successively 6 years at KPMG Advisory and 6 years at Exane BNP.
Since January 2022, he was acting as TIM’s Deputy Chief Operating
Officer. This change will be effective 11 March 2024. With his
extensive experience and deep understanding of the firm's
operations, Arnaud is well-positioned to drive operational
excellence and support the firm's continued growth initiatives.
Arnaud will replace Guillaume Spinner who will be departing from
Tikehau Capital to pursue new opportunities. Guillaume’s departure
comes with gratitude for his 5 years of invaluable contributions to
the organization.
- Tikehau Capital is excited to welcome Margaux Buridant as
Co-Head of Private Wealth Solutions. With a proven track record
of success in the wealth management industry, Margaux brings her
expertise in developing innovative strategies to meet the diverse
needs of high-net-worth clients. Prior to joining Tikehau Capital,
Margaux Buridant worked at Bank of the West (BNP Paribas, and more
recently BMO) in New-York as Senior International Wealth Strategist
and Wealth management Regional Manager. Margaux is based in New
York.
Margaux will join Celia Hamoum who has
been promoted to Co-Head of Private Wealth Solutions. Celia
joined Tikehau Capital in 2015 and spent 6 years in the Sales
Distribution team as a sales representative dedicated to IFAs,
banks, and asset managers. In 2021, she joined the Private Wealth
Solutions team dedicated to private clients and family offices in
France, Belgium and Luxembourg. Her promotion reflects her
exceptional leadership and dedication to delivering tailored
solutions that drive value for clients. Celia is based in
Paris.
Tikehau Capital’s Private Wealth Solutions
Group aims at enhancing direct access to Group funds for family
offices and high net worth individuals globally, which are
increasingly sophisticated and willing to increase their exposure
to alternative assets.
Antoine Flamarion and Mathieu Chabran, co-founders,
declared: "These strategic leadership changes underscore our
commitment to delivering excellence in alternative investments and
client service. Each member of our executive team brings unique
skills and perspectives that will further enhance our ability to
meet the evolving needs of our clients and drive long-term success
for our firm."
OUTLOOK: ~€500M OF NET INCOME TARGET BY 2026
- Tikehau Capital operates in structurally growing markets and
has built strong positions to continue its profitable long-term
growth journey:
- Allocations are well oriented, with institutional and
private clients still willing to allocate an increasing amount of
capital to alternatives over the mid-to-long term,
- Tikehau Capital is well positioned to address a variety of
client needs, which are evolving to adapt to the changing macro
environment. The firm’s capacity to offer compelling “Yield”
solutions which have appealing risk/reward characteristics as well
as “Value-Add” strategies positioned on long-term megatrends is a
key competitive advantage for Tikehau Capital.
- The Group remains laser-focused on delivering strong
operating leverage and profit growth. On top of strong revenue
generation, Tikehau Capital will maintain a strong discipline in
its cost management policy, characterized by:
- A focus on international expansion, by prioritizing
markets and asset classes for strategic growth opportunities.
- A disciplined cost management, with reallocation of
resources to high-impact initiatives through rigorous
prioritization.
- Selective hiring of talent to drive efficiency and
innovation, empower teams for value creation and innovation.
- Disciplined approach to strategic partnerships for
mutual benefit and sensible resource allocation.
- In 2024, Tikehau Capital will keep deploying its strategy by:
- Expanding its flagship strategies, with typically
successor vintages for private equity (decarbonization,
cybersecurity), tactical strategies (special opportunities),
private debt (European direct lending, credit secondaries) or real
estate (European value-add).
- Scaling up innovations across assets classes, with for
example the first vintages ramping up in particular in private
equity (regenerative agriculture, fund of funds for wealthy
individuals) and real estate credit.
- Enhance international development and partnerships, with
the planned launch of offices in Hong Kong and Montreal, as well as
the implementation of the partnerships in Asia with Nikko Asset
Management and UOB-Kay Hian24.
- Drive operating leverage and cost efficiency, with
scalability and cost discipline driving strong operating leverage
in the Asset Management activity, coupled with a continued ramp up
of Tikehau Capital funds within investment portfolio revenues.
- Looking ahead, Tikehau Capital confirms its targets to
reach, by 2026, more than €65bn of AuM for its asset management
business, more than €250m of Fee-Related Earnings, and increase its
return on equity to mid-teens level, driven by c.€500m of net
income (Group share).
ABOUT TIKEHAU CAPITAL
Tikehau Capital is a global alternative asset management group
with €43.2 billion of assets under management (at 31 December
2023).
Tikehau Capital has developed a wide range of expertise across
four asset classes (private debt, real assets, private equity and
capital markets strategies) as well as multi-asset and special
opportunities strategies.
Tikehau Capital is a founder led team with a differentiated
business model, a strong balance sheet, proprietary global deal
flow and a track record of backing high quality companies and
executives.
Deeply rooted in the real economy, Tikehau Capital provides
bespoke and innovative alternative financing solutions to companies
it invests in and seeks to create long-term value for its
investors, while generating positive impacts on society. Leveraging
its strong equity base (€3.2 billion of shareholders’ equity at 31
December 2023), the firm invests its own capital alongside its
investor-clients within each of its strategies.
Controlled by its managers alongside leading institutional
partners, Tikehau Capital is guided by a strong entrepreneurial
spirit and DNA, shared by its 758 employees (at 31 December 2023)
across its 15 offices in Europe, Middle East, Asia and North
America.
Tikehau Capital is listed in compartment A of the regulated
Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP).
For more information, please visit: www.tikehaucapital.com.
DISCLAIMER
This document does not constitute an offer of securities for
sale or investment advisory services. It contains general
information only and is not intended to provide general or specific
investment advice. Past performance is not a reliable indicator of
future earnings and profit, and targets are not guaranteed.
Certain statements and forecasted data are based on current
forecasts, prevailing market and economic conditions, estimates,
projections and opinions of Tikehau Capital and/or its affiliates.
Due to various risks and uncertainties, actual results may differ
materially from those reflected or expected in such forward-looking
statements or in any of the case studies or forecasts. All
references to Tikehau Capital’s advisory activities in the US or
with respect to US persons relate to Tikehau Capital North
America.
APPENDIX
Fee-paying assets under
management
31-Dec-2021
In €m
31-Dec-2022
31-Dec-2023
Private Debt
9,670
12,255
14,573
Real Assets
10,188
11,207
11,141
Capital Markets Strategies
5,124
4,078
4,644
Private Equity
3,383
3,877
4,589
Fee-paying AuM
28,366
31,418
34,947
Weighted average management fee
rate
31-Dec-2021
In bps
31-Dec-2022
31-Dec-2023
Private Debt
84
91
84
Real Assets
111
108
100
Capital Markets Strategies
53
45
50
Private Equity
>150
>150
>150
Management fees25
102
98
94
Performance-related fees
7
4
3
Total weighted average
fee-rate26
108
102
97
Portfolio revenues
breakdown
In €m
31-Dec-2022
31-Dec-2023
Tikehau Capital funds
161.3
168.9
SPACs
2.3
(3.3)
Investments alongside Tikehau Capital
funds
8.2
13.1
Tikehau Capital AM strategies
171.8
178.7
Ecosystem investments
122.4
9.9
Other direct investments
4.2
(9.4)
Ecosystem and direct
investments
126.6
0.5
Total portfolio revenues
298.4
179.2
In €m
31-Dec-2022
31-Dec-2023
Dividends, coupons and distributions
182.2
189.5
Realized change in fair value
12.2
(0.2
)
Realized portfolio revenues
194.3
189.3
Unrealized portfolio revenues
104.1
(10.3
)
Total portfolio revenues
298.4
179.2
Simplified consolidated
P&L
Published
In €m
FY2022
FY2023
Management fees & other revenues27
293.5
312.3
Operating costs
(184.9
)
(189.3
)
Core Fee Related Earnings
(FRE)28
108.6
123.0
Core FRE margin
37.0
%
39.4
%
Share-based compensation (non-cash)
(12.1
)
(16.2
)
Fee Related Earnings (FRE)
96.5
106.8
Realized Performance-related earnings
(PRE)
10.5
10.0
Asset Management EBIT
107.0
116.8
AM EBIT margin
35.2
%
36.2
%
Group portfolio revenues29
298.4
179.2
of which Realized portfolio revenues
194.3
189.5
of which Unrealized portfolio revenues
104.1
(10.3
)
Group corporate expenses
(63.5
)
(63.8
)
Financial interests
0.2
(40.2
)
Non-recurring items and others30
30.4
(0.6
)
Tax
(52.1
)
(14.9
)
Minority interests
(0.3
)
0.1
Net result, Group share
320.2
176.7
Simplified consolidated balance
sheet
Published
In €m
31-Dec-2022
31-Dec-2023
Investment portfolio
3,526
3,858
Cash & cash equivalents
522
228
Other current and non-current assets
844
818
Total assets
4,893
4,905
Shareholders’ equity, Group share
3,144
3,184
Minority interests
7
5
Financial debt
1,472
1,470
Other current and non-current
liabilities
270
245
Total liabilities
4,893
4,905
Gearing31
47%
46%
Undrawn credit facilities
800
800
1 Figures have been rounded for presentation purposes, which in
some cases may result in rounding differences.
2 Core FRE correspond to Fee-Related Earnings excluding expenses
linked to share-based payment transactions (IFRS 2), but for the
social charges linked to share-based compensation.
3 To be proposed to the General Shareholders’ Meeting due to
take place on 6 May 2024.
4 Third-party net new money excluding Sofidy.
5 International investors refer to non-French investors.
6 The figure provided on 6 February 2024 was a first estimate
with available information at that time. This information has been
updated with additional realizations data from transactions carried
out in 2023.
7 Last seven years CAGR (31 December 2016 to 31 December
2023).
8 The audit procedures have been carried out, the audit report
relating to the certification is in the process of being
issued.
9 Amounts available for investment at the level of the funds
managed by Tikehau Capital.
10 The figure provided on 6 February 2024 was a first estimate
with available information at that time. This information has been
updated with additional realizations data from transactions carried
out in 2023.
11 Weighted average net leverage ratio at closing is calculated
for the fifth vintage of the firm’s Direct Lending strategy.
12 Across the firm’s Real Estate strategies at 31 December
2023.
13 Third-party net new money excluding Sofidy.
14 Please refer to press release dated 18 December 2023.
15 Please refer to press release dated 28 February 2024.
16 Third-party net new money.
17 Includes investments in funds managed by Tikehau Capital,
co-investments alongside Tikehau Capital asset management
strategies and SPAC sponsoring.
18 Include management fees, subscription fees, arrangement fees
& structuring fees as well as incentive fees.
19 At 30 September 2023, unrealized carried interest and
performance fees, share allocated to the listed firm.
20 Excluding the non-cash impact of share-based compensation
21 Core FRE correspond to Fee-Related Earnings excluding
expenses linked to share-based payment transactions (IFRS 2), but
for the social charges linked to share-based compensation.
22 Please refer to press release dated 17 July 2023.
23 Please refer to press release dated 8 September 2023.
24 Please refer to p. 5 of this press release.
25 Include management fees, subscription fees, arrangement fees
& structuring fees as well as incentive fees.
26 Implied fee rates are calculated based on average fee-paying
AuM over the last 12 months.
27 Include management fees, subscription fees, arrangement fees
& structuring fees as well as incentive fees.
28 Core FRE correspond to Fee-Related Earnings excluding
expenses linked to share-based payment transactions (IFRS 2), but
for the social charges linked to share-based compensation.
29 Group portfolio revenues are broken down between €179m (€172m
in 2022) generated from Tikehau Capital’s asset management
strategies and €0.5m (€127m in 2022) from ecosystem and other
investments.
30 Include net result from associates, derivatives portfolio
result and non-recurring items.
31 Gearing = Total financial debt / Shareholders’ Equity, Group
share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305117772/en/
Press Tikehau Capital:
Valérie Sueur – +33 1 40 06 39 30 UK – Prosek Partners: Philip
Walters – +44 (0) 7773 331 589 USA – Prosek Partners: Trevor
Gibbons – +1 646 818 9238 press@tikehaucapital.com
Shareholders and Investors
Louis Igonet – +33 1 40 06 11 11 Théodora Xu – +33 1 40 06 18 56
shareholders@tikehaucapital.com
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