Tikehau Capital, a global alternative asset manager, raised €3.3 billion ($3.38 billion) for the fifth generation of its direct lending strategy. The fundraise comprises Tikehau Direct Lending V (TDL V), the flagship vehicle for the group’s direct lending strategy, which has reached a final close and bespoke mandates and side vehicles.
The record fundraise reflects Tikehau Capital’s position as one of the most established direct lenders in Europe and signals continued strong appetite for the asset class from institutional investors globally. The €3.3 billion ($3.38 billion) raised for the fifth generation of the direct lending strategy exceeds by 57% the €2.1 billion ($2.15 billion) raised for the previous generation in 2019.
The capital raise received strong support from a variety of investors globally, including family offices, pension funds and insurance companies. The strategy attracted capital from investors already present in the previous vintage and which increased their commitments by 60% in the fifth generation, as well as a growing number of new international LPs, which shows a wide recognition of Tikehau Capital’s expertise and is a testament to the Group’s global expansion strategy.
In addition, 83% of capital commitments were received from LPs based outside of France, and more than 35% outside of Europe.
This latest generation direct lending fund has already invested in 55 SMEs across Europe to build a highly diversified portfolio, including Benelux, Spain, Italy, Germany, UK and France, as well as Canada. Since inception, Tikehau Capital’s private debt team has continued to focus on maintaining its highly disciplined approach towards attractive risk-return profiles and the creation of diversified portfolios.
“The successful closing of TDL V is tribute to the work of Tikehau Capital’s experienced private debt team and its capacity to finance highly diversified operations in Europe,” Cécile Mayer-Lévi, head of private debt for Tikehau Capital, said. “It also illustrates the support of new and existing LPs and partners globally with investors in the fourth vintage reinvesting in this latest generation. This is testament to Tikehau Capital’s disciplined investment approach and solid long-term track record. We have a very strong pipeline of opportunities and will continue to focus on deploying the fund’s capital to finance Europe’s leading SMEs.”
