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  • Writer's pictureShernel Thielman

Tikehau Capital's 2023 Performance: A Year of Resilience and Growth

Tikehau Capital, a global alternative asset management group, showcased robust performance and strategic execution in 2023, positioning itself for future growth. Let's delve into the key highlights and achievements that marked Tikehau Capital's successful year.

A Year of Financial Triumph

In 2023, Tikehau Capital demonstrated a growth model that accelerated across various dimensions. The firm achieved a record level of net new money, amounting to €6.5 billion – a remarkable 37% above the 2017-22 average. Asset Management AuM saw a notable 13% year-over-year increase, reaching €42.8 billion by December 31, 2023, reflecting a compelling 26% CAGR since 2016.

The deployment strategy remained sound, with €5.9 billion deployed, emphasizing asset selectivity, megatrends, and downside protection. Tikehau Capital's focus on value-creating exits across asset classes resulted in strong performance, contributing to the overall positive financial outlook.

International Recognition and Expansion

Tikehau Capital achieved recognition on a global scale, with 54% of net new money coming from international investors. The firm's active franchise expansion resonated with investors worldwide. Notably, continued progress in expanding the Group's sustainability-themed and impact platform underscored Tikehau Capital's commitment to responsible investing.

Robust Financial Performance

Financial metrics highlighted a strong year-over-year performance. Core Fee-Related Earnings (Core FRE) experienced a 13% growth year-over-year, reaching €123 million, representing an impressive 39.4% margin. The net income for 2023 reached €177 million, a substantial increase of 144% compared to H2 2022. The dividend proposition of €0.75 per share, up 7% vs. 2022, further exemplifies Tikehau Capital's commitment to shareholder value.

Strategic Initiatives and Future Growth

Tikehau Capital is ideally positioned to capture future growth, boasting a strong and compounding balance sheet with €3.1 billion invested in the firm's strategies. The healthy fundraising pipeline across asset classes and the confirmation of 2026 targets, with an additional objective to reach c.€500 million of net profit, Group share, further solidify the firm's strategic vision.

Commitment to Sustainability

Tikehau Capital's commitment to sustainability was evident in its achievements. The firm finalized its Net Zero Asset Manager targets, aiming to manage close to 40% of its AuM in line with net-zero goals. The sustainability-themed and impact platform dedicated to investments in companies reached €4.3 billion, emphasizing Tikehau Capital's contribution to addressing key structural issues.

Financial Review and Shareholder Value

The financial review emphasized the continued increase in Fee-paying AuM, securing recurring long-term management fee generation. Management fees reached €312 million in 2023, up 6% compared to 2022. Tikehau Capital's disciplined cost management policy resulted in a Core FRE margin of 39% in 2023.

Management Changes and Governance

Tikehau Capital announced key management changes to strengthen its executive team, reflecting the commitment to delivering excellence in alternative investments. Noteworthy among the changes is the transition of Cécile Cabanis to a non-executive position, highlighting her pivotal role in shaping Tikehau Capital's impact and sustainability platform.

Outlook: A Vision for Future Success

As Tikehau Capital looks ahead, the firm remains focused on its strategic objectives. The planned expansion of flagship strategies, scaling up innovations across asset classes, and enhancing international development and partnerships all contribute to the firm's vision for continued success.

Conclusion and Investment Disclaimer
Tikehau Capital's performance in 2023 underscores its resilience, adaptability, and commitment to sustainable growth. Investors should carefully consider the information provided here in the context of their own investment goals, risk tolerance, and financial situation. Past performance is not indicative of future results.
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