Paris-based alternate investment firm Tikehau Capital raises record €3.3B for its direct lending funds

Paris-based Tikehau Capital, a global alternative asset management group, announced on Friday, July 29, that it has raised a record €3.3B in funds for its fifth direct lending vehicle. The fund exceeds the size of its predecessor, which raised €2.1B in 2019, by 57 per cent.

The funding consists of the group’s flagship direct lending fund, Tikehau Direct Lending V (“TDL V”), which is completing its final closing, as well as tailor-made and specialised investment vehicles.

Launched in 2020, TDL V offers a wide range of tailor-made financing solutions for SMEs in Europe. Since 2007, Tikehau Capital has developed its expertise in senior stretched, unitranche, mezzanine, and PIK notes financing, and claims to be the first to offer private debt financing integrating ESG criteria.

Investors in this round

The funding came from multiple investors, including family offices, pension funds and insurance companies. According to a statement by Tikehau Capital, in this fifth vintage, the direct lending strategy attracted subscribers from the previous generation who renewed and upped their commitment by almost 60 per cent.

83 per cent of capital subscriptions came from client investors based outside of France, and more than 35 per cent outside of Europe.

Cécile Mayer-Lévi, Head of Private Debt for Tikehau Capital, says, “The successful closing of TDL V is the result of the expertise of Tikehau Capital’s private debt team and its ability to finance highly diversified transactions. in Europe. This success also illustrates the support of new client-investors and existing partners globally, with investors from the previous vintage reinvesting in this latest generation of funds. We have a solid pipeline of opportunities and we will continue to focus on the deployment of the fund and support SMEs in their financing needs.”

Tikehau Capital reports that TDL V has already backed nearly 55 SMEs in Europe, including in Benelux, Spain, Italy, Germany, the UK, France, as well as in Canada.

Balancing risk and return to create long-term value

Founded in 2004 by Antoine Flamarion and Mathieu Chabranm, Tikehau Capital is an alternative asset management group with €36.8B in assets under management. The firm has developed a wide range of expertise in four asset classes, including private debt, real assets, private equity, and capital markets strategies, as well as strategies focused on multi-asset solutions and special situations.

Tikehau Capital claims to provide tailor-made and alternative financing solutions to the companies it supports, and helps create long-term value for its investors while generating a positive impact on society.