Key Takeaways
- • Tikehau Capital has closed the sixth generation of its European direct lending strategy at €5.2bn (excluding leverage), an increase of almost 60% over the previous generation.
- • The fund's investment period began in March 2024; it has completed 30 transactions and four divestments generating double-digit returns to date.
- • The portfolio is 44% deployed, with average sector exposure of 10% and entry leverage of 4.0x net debt/EBITDA, now reduced to 3.5x.
- • Commitments were drawn predominantly from outside Europe: 18% from North America and 28% from Asia and the Middle East.
Summary
Tikehau Capital, a global alternative asset manager, has announced the definitive closure of the sixth generation of its European direct lending strategy at €5.2bn excluding leverage, according to the firm's announcement reported by RankiaPro. The close represents an increase of almost 60% versus the previous generation and is described by the group as a new milestone for its Credit platform, reflecting continued investor confidence in its approach to the European middle market.
The fund's investment period began in March 2024. Since then, the strategy has completed 30 transactions and four divestments that generated double-digit returns. As of the announcement, the fund is 44% deployed into European companies with consolidated business models and strong competitive positions. The portfolio is diversified, with average sector exposure of 10%. Initial entry leverage was limited to 4.0x net debt/EBITDA and currently stands at 3.5x, which the manager attributes to the performance of portfolio companies.
The fund drew a broad institutional investor base, with the majority of commitments coming from outside Europe. North America accounted for 18% of commitments and Asia and the Middle East for 28%. The remainder of the source material does not itemize the balance of the investor base.
Tikehau's private debt team, which comprises 30 investment professionals, continues to source opportunities in the core segment of the European middle market, alongside private equity sponsors with whom the group has built relationships across successive generations of the vehicle. The firm states that the strategy maintains a selective subscription approach with a focus on capital preservation and portfolio diversification.
The fund's investment period began in March 2024. Since then, the strategy has completed 30 transactions and four divestments that generated double-digit returns. As of the announcement, the fund is 44% deployed into European companies with consolidated business models and strong competitive positions. The portfolio is diversified, with average sector exposure of 10%. Initial entry leverage was limited to 4.0x net debt/EBITDA and currently stands at 3.5x, which the manager attributes to the performance of portfolio companies.
The fund drew a broad institutional investor base, with the majority of commitments coming from outside Europe. North America accounted for 18% of commitments and Asia and the Middle East for 28%. The remainder of the source material does not itemize the balance of the investor base.
Tikehau's private debt team, which comprises 30 investment professionals, continues to source opportunities in the core segment of the European middle market, alongside private equity sponsors with whom the group has built relationships across successive generations of the vehicle. The firm states that the strategy maintains a selective subscription approach with a focus on capital preservation and portfolio diversification.
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