Tikehau Capital completed an inaugural collateralized fund obligation (CFO) for an amount of $300 million.
The CFO’s assets consist of interests in private debt funds that were mainly held on Tikehau Capital’s balance sheet. They notably include exposure to the firm’s flagship direct lending strategy and to its innovative private debt secondaries strategy.
The rated debt and equity tranches have been placed to large US institutional investors while Tikehau Capital retains part of the equity. This transaction would have a positive impact on Tikehau Capital’s cash position over the life of the vehicle.
This vehicle provides investors with an innovative access to private debt, an asset class with highly appealing features in terms of risk-adjusted returns in the current environment.
This transaction highlights U.S. investors’ confidence in the group’s strategies and represents a new milestone for Tikehau Capital expansion in North America and another illustration of the firm’s ability to structure and offer innovative products.
