Key Takeaways
- • Tikehau Capital closed its second private debt secondaries fund, Tikehau Private Debt Secondaries II (TPDS II), at $1B, above its original $750M target and more than double the ~$425M raised by TPDS I in 2021.
- • The fundraise took more than two years on the road, longer than for the prior fund, as the GP had to prove its first fund's performance could be repeated in a more crowded market.
- • TPDS I posted an IRR of 12.5% as of September 2025, which the GP cited as the basis for investor confidence in TPDS II.
- • TPDS II's investor base broadened from mostly family offices in Fund I to include large pensions and insurers, with new interest from Southeast Asia and Latin America.
- • About 50% of TPDS II's capital is deployed, with a preference for LP-led deals and a modest tilt toward direct lending.
Summary
Tikehau Capital has closed its second vintage private debt secondaries fund, Tikehau Private Debt Secondaries II ("TPDS II"), at $1B, above its original $750M target, according to Markets Group. The raise more than doubled the size of the inaugural TPDS I fund, which closed at approximately $425M in 2021. The fund launched in 2023 and focuses on private debt secondaries across North America and Europe.
The context for the raise is a record year for secondaries. According to a recent Campbell Lutyens report cited by Markets Group, global private markets secondary transaction volume reached a record $225B in 2025, up roughly 45% from 2024, driven by strong activity in both LP-led and GP-led deals.
The process was not without difficulty. The GP was on the road for more than two years, longer than it took for its previous fund. Pierpaolo Casamento, head of private debt secondaries at Tikehau Capital, told Markets Group that the biggest challenge was demonstrating that TPDS I's strong performance could be replicated in a more crowded market. He credited the firm's consistent execution and first-to-act advantage with convincing investors, and said diligence focused on proof and repeatability. TPDS I's IRR stood at 12.5% in September 2025.
Investor composition has shifted. Casamento said most interest in the prior fund came from family offices, which he described as smaller and more agile investors willing to back a strategy at inception. TPDS II attracted a more diverse, global base, including large pensions and insurers, while retaining most of the European and U.S. investors from Fund I. Demand from Asian investors, particularly in Southeast Asia, confirmed the firm's thesis that Asia is a natural market for the strategy. Latin American investors also participated.
As of the report, the fund has deployed roughly 50% of its capital. The portfolio favors LP-led transactions, though Casamento said this is "not a hard rule" but a reflection of where opportunities have been most attractive so far. The strategy has evolved modestly to increase exposure to direct lending. Casamento also said volatility, geopolitical tensions and private credit liquidity concerns are creating opportunities for secondary buyers as investors seek liquidity.
The context for the raise is a record year for secondaries. According to a recent Campbell Lutyens report cited by Markets Group, global private markets secondary transaction volume reached a record $225B in 2025, up roughly 45% from 2024, driven by strong activity in both LP-led and GP-led deals.
The process was not without difficulty. The GP was on the road for more than two years, longer than it took for its previous fund. Pierpaolo Casamento, head of private debt secondaries at Tikehau Capital, told Markets Group that the biggest challenge was demonstrating that TPDS I's strong performance could be replicated in a more crowded market. He credited the firm's consistent execution and first-to-act advantage with convincing investors, and said diligence focused on proof and repeatability. TPDS I's IRR stood at 12.5% in September 2025.
Investor composition has shifted. Casamento said most interest in the prior fund came from family offices, which he described as smaller and more agile investors willing to back a strategy at inception. TPDS II attracted a more diverse, global base, including large pensions and insurers, while retaining most of the European and U.S. investors from Fund I. Demand from Asian investors, particularly in Southeast Asia, confirmed the firm's thesis that Asia is a natural market for the strategy. Latin American investors also participated.
As of the report, the fund has deployed roughly 50% of its capital. The portfolio favors LP-led transactions, though Casamento said this is "not a hard rule" but a reflection of where opportunities have been most attractive so far. The strategy has evolved modestly to increase exposure to direct lending. Casamento also said volatility, geopolitical tensions and private credit liquidity concerns are creating opportunities for secondary buyers as investors seek liquidity.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.