Investment firm Tikehau Capital experiences significant growth, as its Assets Under Management (AUM) surge to €51 billion.
Tikehau Capital, a leading European asset manager, has reported impressive results from its credit strategies in the first half of 2025. The firm's strategy focused on active deployment, with €1.9 billion invested, making up 65% of its total H1 2025 deployment.
The company prioritised direct lending, supporting portfolio companies with add-on financings and follow-on transactions. This approach was coupled with disciplined capital allocation, careful leverage management, and stringent documentation standards. Tikehau Capital's commitment to these practices helped it maintain a strong position in the market.
In line with its proactive approach, Tikehau Capital also diversified geographically. It expanded beyond Europe into the Asia Pacific (notably a partnership with UOB-Kay Hian), Spain, Belgium, Italy, the United States, and Norway. This geographic diversification allowed the firm to tap into various markets and opportunities.
In addition to direct lending, Tikehau Capital maintained an opportunistic position on collateralized loan obligation (CLO) issuances. The firm focused on resetting older CLO vintages to secure better financing terms and boost returns. This strategy, combined with its focus on direct lending, positioned Tikehau Capital for robust earnings growth and capital deployment across multiple credit dimensions.
The realizations from Tikehau Capital's credit strategies were significant, accounting for 83% of total exits in H1 2025. This reflects the active portfolio management and capital recycling that characterise Tikehau Capital's approach.
Tikehau Capital's assets under management (AUM) increased by 12% in the past year to €51bn. The firm's fee-paying AUM amounted to €40.8bn. In June this year, Tikehau Capital launched its first semi-liquid private debt fund for private investors accessible outside of French life insurance.
The strong performance in the first half of 2025 demonstrates the resilience of Tikehau Capital's diversified platform and the disciplined execution of its strategy. Portfolio revenues grew by 42% over the same period, and gross and net inflows reached record levels at €5.2bn and €4bn, respectively.
Tikehau Capital increasingly deployed capital into larger-scale, cross-border transactions in high-conviction sectors. This approach, combined with its geographic diversification, helped the firm achieve record fundraising from a broader and more global client base.
The deal flow for Tikehau Capital's direct lending strategies remained active in the first half of the year. Core fee-related earnings were up 8% year-on-year to €60m, reflecting the firm's robust momentum across all its investment strategies.
In conclusion, Tikehau Capital's credit strategy in H1 2025 combined disciplined but proactive lending, geographic diversification, opportunistic CLO management, and maintaining strong documentation and leverage controls. This approach has positioned the firm for continued success in the future.
Tikehau Capital's commitment to disciplined capital allocation and leverage management, as well as its focus on direct lending and opportunistic CLO management, has been crucial in its strong position in the market (finance). The firm's motivated approach of diversifying geographically and focusing on larger-scale transactions in high-conviction sectors has also contributed to its robust capital deployment and earnings growth across multiple credit dimensions (finance).
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