The funds invest in businesses with a long-term investment horizon and favour companies having the following characteristics:

• Understandable business model that can sustain high returns on capital employed for many years due to their competitive advantages

• Well-incentivized management team with a sensible strategy of capital allocation between reinvestments in the business, acquisitions, and returning cash to shareholders

• Valuation sufficiently low to allow for an attractive 5-year IRR assuming a conservative exit multiple in line with the quality and the risks inherent to the business
  

Tikehau IM adopts a proactive and fundamental credit approach to selecting and managing assets. Capital preservation and an attractive risk-reward balance are key objectives of the firm. The investment approach to credit selection is primarily based on fundamental credit analysis, relative value analysis, examination of structural and transaction features, and portfolio diversification.

Tikehau IM’s investment philosophy favours companies that display a strong track record of sustainable cash flow generation, have access to capital markets or alternative lender platforms for liquidity, or the ability to dispose assets to produce cash flow, in order to limit downside risk. Careful credit selection and liquidation analysis are vital to avoid defaults or maximise recoveries in cases when asset quality deteriorates. Diversification of the asset investment pool is also emphasised and ensures that returns are broadly spread and less volatile, with no excessive concentration risk on a single credit or sector.

Tikehau IM’s credit investment approach is based on strong convictions, mostly through a bottom-up approach, on an objective selection criteria (not a benchmark index approach).

• Strong Local European Presence in core markets generates significant proprietary deal flow

• Tier 1 relationships built through our global footprint generates a sustainable and growing deal pipeline

• €13.2bn of AuM in Real Estate expertise with strong track record over the last 15 years

• Frequent co-investment opportunities offered to large investors
  
  

Long-lasting Experience in Private Debt

• c. € 13.4bn under management in Private Debt Strategies

• Private debt is, and has been since inception, Tikehau’s core activity, accounting for nearly 36.4% (as of 30.06.2022) of AuM. It is not an adjunct to a private equity or broader banking group, or recent spin-off

• Our experience spans all levels of the capital structure including senior, stretched senior, unitranche and mezzanine/PIK. This experience has enabled it to achieve a leading position in European mid-market lending

• Our investment professionals based across Europe, with more than 15 years of average experience
  

Tikehau offers wide range of financing solutions:

• Tailor made financing solutions adapted to company needs and financial resources at all levels of the capital structure

• Enable companies to achieve goals without the limitations of secured debt financing or the costs associated with raising ordinary equity capital

• Flexibility in terms of underlying instruments (Loans, Bonds, PIK, Preferred Equity,...)
  

Tikehau Direct Lending: Attractive risk reward premium

• More conservative capital structure: lower leverage and higher equity cushion

• Enhanced pricing terms

• Increased control over the terms of the end product
  

Targeting high growth potential in private companies which have achieved underlying profitability.
We invest amounts usually ranging between €10 and €70 million alongside the management teams, entrepreneurs and founding families who remain majority shareholders.

Helping successful companies fulfill their ambitions. We support closely the management teams of the companies we invest in, across all key aspects of their development (strategic projects for organic growth, external growth, etc.). We also connect companies into our wide network of contacts and experts, to further help them achieve their potential.

Expanding companies and creating value. By providing patient capital and operational support, the companies we invest in are in a better position to seize new opportunities, expand operations, break into new markets, and ultimately increase in value.
The Private Equity team also manages the legacy portfolio of Tikehau Capital’s opportunistic investment strategy, comprising both listed and non-listed investments with a global footprint.

Liquid strategies are ‘liquid’ in that they are carried out through open-ended funds, from which investors can invest or withdraw at any time by requesting redemption of their fund units.

Through our fixed income funds, we invest in High Yield, Investment Grade corporates and Subordinated financials in various open-ended funds and managed accounts. These are mostly in pan-European credit and Asian credit (focused on China, India and Indonesia), Value Quality and Special Situations equity stocks.

Through our balanced and equities management business, we manage open-ended funds offering access to a flexible balanced management in the equity and credit markets.