Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — Investor Presentation (November 2024)
74 slides from Tikehau Capital Sca's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
INVESTOR PRESENTATION NOVEMBER 2024
Slide 2: Agenda
1. Introduction to Tikehau Capital 2. A large spectrum of expertise Agenda 3. Accelerating growth in Asset Management 4. Granular & Synergetic Investment Portfolio 5. Financials 6. Outlook 7. Appendix
Slide 3: Introduction to Tikehau Capital
01 INTRODUCTION TO TIKEHAU CAPITAL TIKEHAU CAPITAL INVESTOR PRESENTATION 3
Slide 4: A growing global alternative asset manager
A growing global alternative asset manager TIKEHAU CAPITAL Founded in IPO in €47.1bn €3.1bn 17 767 2004 March 2017 of Group AuM(1) of shareholders’ equity(2) offices(1) employees(1) • Complementary • Strong equity base asset classes • Capital allocation priority: • Recurring and predictable ASSET in
Slide 5: Tikehau Capital's key differentiators
Tikehau Capital’s key differentiators A fast-growing global alternative asset manager using its strong balance sheet as a compounder of future growth Complementary and relevant investment Robust balance sheet allowing for Strong alignment of interests at the heart strategies offering compelling risk
Slide 6: A significant growth journey
A significant growth journey 2016-2024(1) CAGR 2016 2024(1) €47.1bn +24% x4 (4) +15% # Investment professionals 57 242 +70% x4.7 in c. 8 years +30% # Sales professionals 8 94 x12 Group AuM €10bn AuM from +21% non-domestic investors(3) (€bn) 2 19 x10 5 offices 17 offices 31/12/2016 30/09/2024 Credit
Slide 7: A solid track record of profitable growth
A solid track record of profitable growth AM revenues Core Fee-Related Earnings(2) Shareholder returns (1) +34% (1) +73% 123 312 0.40 0.75 0.50 39% FRE 7% margin 0.70 39 0.60 3 €m €m 0.50 0.50 0.50 2016 2023 2016 2023 0.25 Management fee rate Shareholders’ Equity 2017 2018 2019 2020 2021 2022 2023 +
Slide 8: Our balance sheet acts as a strong growth compounder
Our balance sheet acts as a strong growth compounder Balance-sheet compounding effect Asset Management Investment portfolio Scalability & operating leverage Tikehau Capital’s Funds performance Direct & ecosystem investment performance Mid-teens Target Return on Equity by 2026 Fee-related Performance
Slide 9: Structural tailwinds for alternatives
Structural tailwinds for alternatives Alternative assets to represent 23% of global AuM by 2028… …but capturing 57% of global revenues Passive Management CAGR CAGR $167tn $597bn +7% +7% 23% CAGR $421bn 38 343 $119tn CAGR +6% 57% +7% 24 20% 227 $269bn 54% $69tn 14% 108 40% 10 $37tn $138bn 4 12% 44 32
Slide 10: An increasingly global platform
An increasingly global platform 12% of FTEs in 29% of FTEs in 17 North America Europe(1) & Middle East Offices globally Amsterdam 9% of FTEs in Asia Montreal London Luxembourg 45 New York Brussels Frankfurt Nationalities Seoul Tel Aviv Milan Tokyo Madrid 49% Abu Dhabi Zurich Hong Kong of AM professi
Slide 11: A strong outlook
A strong outlook Our growth playbook 2024 Action Mid-term targets Expand flagship strategies ✓ Scalability >€65bn 2026 AM AuM Operating leverage >€250m Scale up innovation ✓ 2026 FRE Mid-teens Return on Equity by 2026, driven by Enhance international development Value creation and partnerships ✓ ~€5
Slide 12: A large spectrum of expertise
02 A LARGE SPECTRUM OF EXPERTISE TIKEHAU CAPITAL INVESTOR PRESENTATION 12
Slide 13: Our conviction-based thematic investments
Our conviction-based thematic investments Long-lasting expertise in mid-market financing across asset classes and strategies CREDIT CAPITAL MARKETS TACTICAL REAL ASSETS PRIVATE EQUITY PRIVATE DEBT STRATEGIES STRATEGIES Mid-market financing Special financing Asset transformation and Growth Conviction
Slide 14: A large spectrum of investment expertise
A large spectrum of investment expertise A COMPREHENSIVE OFFERING ACROSS ASSET CLASSES AND INVESTMENT VEHICLES INVESTMENT ACTIVITY CAPITAL MARKETS €0.4bn Complementary vehicle types CREDIT STRATEGIES €21.7bn €5.6bn Direct Lending • Fixed Income • Permanent capital • Corporate Lending • Equity Second
Slide 15: What our investor-clients are looking for
What our investor-clients are looking for VALUE-ADD 22% YIELD Main performance driver Main performance drivers = = Capital gains Income €46.7bn of AM AuM at 30.09.24 • Targets mid-high teens gross • Targets mid-high single digit IRRs gross IRRs • Back-ended returns • Predictable & regular returns 78
Slide 16: Credit
Credit TIKEHAU CAPITAL EXPERTISE OUTLOOK Tactical Strategies European Direct (10%) Lending (34%) Continue to scale up Direct Lending and Secondaries strategies Secondaries Corporate Lending (11%) (5%) Expand SMAs and evergreen unit-linked vehicles European Lev. CLOs & Loans (4%) Direct Lending Lev.
Slide 17: Private Equity
Private Equity TIKEHAU CAPITAL EXPERTISE OUTLOOK Others Secondaries (5%) (1%) PRIVATE EQUITY Growth Equity Expand Decarbonization platform globally (7%) Aero & Cybersecurity (33%) Scale up Aero and Cybersecurity strategies €6.1bn of AuM(1) Raise Regenerative Agriculture strategies and launch success
Slide 18: Real Assets
Real Assets TIKEHAU CAPITAL EXPERTISE OUTLOOK Scale up European value-add and US Infrastructure strategies through successor Liquid funds & others 4 1 Closed-end funds funds 9% 29% Keep an active watch for club deals and co-investment opportunities €13.4bn 3 of AuM(1) Expand our listed REITs in Fran
Slide 19: A granular and diversified Real Assets platform
A granular and diversified Real Assets platform • Diversified platform composed of granular small-sized assets in prime locations • • High-quality long-term tenants Embedded hedge against inflation (rent indexation) >9,000 26% €1.5bn • Prudent and targeted investment approach, while taking advantage
Slide 20: Capital Markets Strategies
Capital Markets Strategies TIKEHAU CAPITAL EXPERTISE Flexible & Equity (9%) High Yield, Investment Grade corporates and Subordinated financials in various open-ended funds and managed accounts Fixed Income Focus on Conviction based management through benchmark free approach (91%) €5.6bn of AuM(1) Fu
Slide 21: Accelerating growth in Asset Management
03 ACCELERATING GROWTH IN ASSET MANAGEMENT TIKEHAU CAPITAL INVESTOR PRESENTATION 21
Slide 22: Strong growth reflects successful execution
Strong growth reflects successful execution SELECTIVE DEPLOYMENT • High investment discipline • Strong & local sourcing capabilities DYNAMIC FUNDRAISING • High level of skin in the game • Asset class complementarity • Full integration of sustainability criteria • Innovation-driven mindset • Business
Slide 23: Step-up in deployment in line with the growth of the Group's AM platform
Step-up in deployment in line with the growth of the Group’s AM platform Multi-local platform in place Step-up in deployment in line with the platform’s expansion 98% 17 offices Selectivity rate (1)95% €3.9bn 5.9 Private Industrial partners 6.9 Equity Real Assets 5.5 4.9 4.2 3.7 Credit 3.6 €6.6bn 2.
Slide 24: Good realizations momentum
Good realizations momentum +33% 2.4 • Healthy pace of realizations €1.3bn • Credit accounted for 2/3 of total realizations, driven by sizeable 1.8 Private Equity refinancings in Direct Lending Real Assets Corporate Lending and Tactical Strategies 1.6 • Realizations in Private Equity 1.4 1.5 Credit m
Slide 25: Solid performance across our funds
Solid performance across our funds Strong performance metrics(1) Example of realizations in 2024(3) Fund performance Cybersecurity Aerospace(4) Solid exit pipeline across verticals Private Gross Net Equity (Aerospace, Decarbonization, IRR IRR Growth) Direct Lending Strategy (3rd vintage) 9.3% 7.0% D
Slide 26: Granular and diversified exposure by sector and geography
Granular and diversified exposure by sector and geography AM AuM breakdown by sector AM Assets breakdown by geography RoW Other North America 2% Dry Powder 8% 8% Dry Powder 14% UK 5% 14% Continental €46.7bn Europe (excl. France) €46.7bn of AM AuM at 30.09.24 of AM AuM at 30.09.24 Top 15 Real Estate
Slide 27: Attractive portfolio metrics with embedded downside protection
Attractive portfolio metrics with embedded downside protection Asset selection + Value creation DIRECT LENDING(1) PRIVATE EQUITY(2) REAL ESTATE(3) High level of granularity High-quality assets +14% +30% 25% LTM Revenue growth LTM EBITDA growth >9,000 Average EBITDA margin Units across Real Estate pl
Slide 28: Dynamic fundraising momentum
Dynamic fundraising momentum Asset Management Net New Money 6.5 €4.8bn 4.7 Broad range of investment +37% 4.3 Capital Markets • Strategies strategies 4.7 1.4 1.4 Private Q3 1.1 Equity • Solid market positioning in long- 3.9 term growth themes Real Assets • Good progress in fundraising for flagship s
Slide 29: Continued expansion of our client base globally
Continued expansion of our client base globally AM AuM breakdown by investors nationalities at 30 June 2024 Most represented nationalities in AuM at 30 June 2024(2) 1% Office Opening Year Non-domestic investors(1) €19.1bn 8% 10% 1 United States 2018 9% 2 Italy 2015 +23% 3 United Kingdom 2013 Non-dom
Slide 30: Major steps forward in expansion in Asia
Major steps forward in expansion in Asia Client Finalization of the outreach & strategic partnership with Investment Client outreach & Investment Partnership with Hong-Kong + office opening Distribution agreement for Tikehau Capital funds Client Establishment of an investment outreach & joint-ventur
Slide 31: Continued progress in the democratization of private markets
Continued progress in the democratization of private markets AM AuM breakdown by client type at 30 June 2024 Key partners Insurance Private banks Distribution Private investors companies platform 1% €13.6bn 5% 10% 30% 25% of AM AuM at 30 June 2024 €45.6bn AM AuM at 30 June 2024 36% Opale Capital’s l
Slide 32: Tikehau Capital's Sustainability Milestones
Tikehau Capital’s Sustainability Milestones Strengthening the sustainability-themed and impact platform with addition of the sustainable cities vertical Signatory of the Net Zero Asset Finalization of the initial Manager Initiative Net Zero Asset Manager targets €1bn €3.5bn of Climate & Biodiversity
Slide 33: Sustainability-themed & impact platform
Sustainability-themed & impact platform FIT TO ADDRESS TRANSITION & RESILIENCE INVESTEE COMPANY REAL ASSETS DECARBONISATION RESILIENCE NATURE AND BIODIVERSITY RESILIENT CITIES PRIVATE EQUITY PRIVATE DEBT PRIVATE EQUITY PRIVATE DEBT PRIVATE EQUITY REAL ESTATE (3) Decarbonisation Unit-linked product(1
Slide 34: Sustainability fully embedded within our business model
Sustainability fully embedded within our business model Sustainability at Tikehau Capital 2024 recognition(1) (1) >65% 20% 78% of variable compensation linked to of Group’s debt linked to (2) of AuM in SFDR Article 8 & 9 funds people & climate goal sustainability criteria Thematic and impact platfor
Slide 35: Granular & Synergetic Investment Portfolio
04 GRANULAR & SYNERGETIC INVESTMENT PORTFOLIO TIKEHAU CAPITAL INVESTOR PRESENTATION 35
Slide 36: Our investment portfolio is increasingly exposed to our Asset Management strategies
Our investment portfolio is increasingly exposed to our Asset Management strategies Balance sheet investment portfolio mix (€m) • Disciplined capital allocation • Support of innovation initiatives 4,016 • Exposure to returns deemed attractive 3,858 associated with investments within own 3,527 Ecosys
Slide 37: Strong alignment of interests
Strong alignment of interests 4,016 4,016 206 Other direct investments Ecosystem 896 and direct 698 Ecosystem investments investments SPAC sponsoring (€8m) 116 Alongside Tikehau Capital’s Strategies 79 Capital Markets Strategies Fixed income & equity European Core / Core+ real estate 699 Real Assets
Slide 38: Ecosystem and direct investments serving our global platform
Ecosystem and direct investments serving our global platform 4,016 Invest as an LP to complement and Develop long-term strategic relationships Ecosystem 896 consolidate expertise through GP stakes and direct investments Co-invest alongside top-tier GPs globally Create value through balance sheet leg
Slide 39: Financials
05 FINANCIALS TIKEHAU CAPITAL INVESTOR PRESENTATION 39
Slide 40: Simplified consolidated P&L
Simplified consolidated P&L €m H1 2023 H1 2024 High basis of comparison linked to subscription fees Management fees & other revenues(1) 156.1 155.9 Structural growth in management fees (+13% YoY) offset by cyclical Operating costs(2) (99.6) (100.2) impact on Real Estate fundraising Core Fee-Related
Slide 41: Continued growth in Fee-Paying AuM supporting long-term management fee generation
Continued growth in Fee-Paying AuM supporting long-term management fee generation €37.2bn +12% 45.6 40.5 Non fee-paying +12% 4.4 Fee-paying AuM Fee-paying AuM Future fee-paying 4.4 at 30 June 2024 YoY growth ~€40m Fundraising on strategies 37.2 charging fees on Fee-paying 33.3 capital deployed + Inc
Slide 42: Continued growth in management fees
Continued growth in management fees Average management LTM average weighted management fee evolution reflects cyclical effects with high basis fee rate (LTM) 97 bps 88 bps of comparison on subscription fees in H1 2023, as well as H1 2024 fundraising mix Management fees and others 156.1 155.9 High co
Slide 43: Structural Core FRE growth offset by cyclical effects
Structural Core FRE growth offset by cyclical effects Structural growth in management fees Core FRE €56.5m in line with FPAuM growth €55.7m Core FRE(1) margin 36.2% 35.7% +13% Cyclical impact linked to lower YoY growth in management fees subscription fees from 156.1 and others Real Estate strategies
Slide 44: Performance-related earnings, a material profit driver ahead
Performance-related earnings, a material profit driver ahead 13% yoy increase in AuM eligible to carried interest Our approach to carried interest Material embedded performance related revenues(1) +13% 20.5 Shareholder-friendly 201 18.2 allocation 15.8 x2.5 123 Cautious P&L recognition 8.7 81 7.1 7.
Slide 45: Tikehau Capital's approach to performance fees
Tikehau Capital’s approach to performance fees Shareholder-friendly Material mid-term Cautious P&L recognition allocation profitability driver 53% No negative ~€20bn of carried interest on closed-end funds AuM eligible for carried interest at revenue retained by Tikehau Capital 30 June 2024 100% giv
Slide 46: Increasing contribution from Tikehau Capital strategies to realized portfolio revenues
Increasing contribution from Tikehau Capital strategies to realized portfolio revenues Realized revenues growth driven by Tikehau Capital strategies 95 82 78 Ecosystem & 84 direct invest. 81 +13% Unrealized portfolio 2 Tikehau Capital 72 YoY growth in realized revenues revenues strategies from Tikeh
Slide 47: Robust financial structure supporting our business model
Robust financial structure supporting our business model €m 31 Dec. 2023 30 June 2024 Investment portfolio €3.1bn €0.8bn 78% 3,858 4,017 Cash & cash equivalents 228 227 Other current & non-current assets 818 867 Shareholders’ Equity, Short-term financial ESG-linked debt Total assets 4,905 5,112 Grou
Slide 48: Outlook
06 OUTLOOK TIKEHAU CAPITAL INVESTOR PRESENTATION 48
Slide 49: Tikehau Capital is well-positioned to capture future growth
Tikehau Capital is well-positioned to capture future growth Strong structural growth themes Cyclical headwinds Tikehau Capital’s strengths Institutional LPs want to allocate Lower distributions from more, to fewer GPs Private Equity put constraints on LPs resources Broad range of investment strategi
Slide 50: Outlook: acceleration in H2 2024, confirmation of mid-term targets
Outlook: acceleration in H2 2024, confirmation of mid-term targets Confirmation of mid-term targets H2 2024 outlook >€65bn Solid fundraising pipeline for flagship funds, positive momentum for Credit and Private Equity 2026 AM AuM >€250m Anticipation of an acceleration in net inflows, which should gr
Slide 51: Fundraising pipeline
Fundraising pipeline Emerging Scaling Established strategies strategies strategies Regenerative Agriculture Decarbonization (2nd vintage) Cybersecurity (4th vintage) European Sovereignty (equity) Value-Add Real Estate (2nd vintage) Value-Add Aerospace (2nd vintage) Tikehau 2027(1) Special Opportunit
Slide 52: Asset class target mix by 2026
Asset class target mix by 2026 EXCLUDING POTENTIAL M&A 78% ~1/3 Value-add c.100% 22% €9bn at 31.12.16 €47bn at 30.09.24 >€65bn in 2026 Yield Value-add ~2/3 Yield At 30 September 2024. Achievement of objectives and forecasts is not guaranteed. TIKEHAU CAPITAL INVESTOR PRESENTATION 52
Slide 53: Appendix
07 APPENDIX TIKEHAU CAPITAL INVESTOR PRESENTATION 53
Slide 54: Continued increase in fee-paying AuM
Continued increase in fee-paying AuM SUPPORTING LONG-TERM MANAGEMENT FEE GENERATION AuM breakdown Fee-paying AuM by duration 15% 8% Permanent capital Fee-paying 9% 7y or + Future fee-paying €37.2bn 25% 3 to 6y Non fee-paying 10% €45.6bn 21% Fee-paying AUM at Less than 3y AuM at 30 June 2024 82% 30 J
Slide 55: A model on its way to deliver full potential
A model on its way to deliver full potential Fee-related earnings Performance-related earnings Investment returns Platform investments ahead of Large flagship funds still in ~50% of investments maturing Current features management fees generation J-curve effect + investment phase Conservative P&L ac
Slide 56: Solid track record in European mid-market lending
Solid track record in European mid-market lending Breakdown of Credit AuM Tactical Strategies • Leadership position in European mid-market lending allowing for selective (10%) deal sourcing Secondaries • Attractive features and risk-adjusted returns thanks to floating rate (5%) instruments Direct Le
Slide 57: Solid performance track record in Credit (1/2)
Solid performance track record in Credit (1/2) Direct Lending: from emerging to flagship strategy Credit Secondaries: future flagship in the making Net IRR 7.0% 7.5% 7.7% €3.3bn • Early mover within the credit secondaries space €2.1bn illustrating our innovation capabilities • Solid sourcing capacit
Slide 58: Solid performance track record in Credit (2/2)
Solid performance track record in Credit (2/2) Direct Lending: from emerging to flagship strategy Credit Secondaries: future flagship in the making €m Vintage III Vintage IV Vintage V €m 1st vintage Date of inception Dec. 2014 Jul. 2017 Oct. 2020 Date of inception Oct. 2020 Strategy size(1) €610m €2
Slide 59: Our value-creating approach in Private Equity
Our value-creating approach in Private Equity Tikehau Capital Expertise • Disciplined investment on value-creating megatrends Others Secondaries (5%) • Thematics approach with top-tier corporate partners (1%) • Conservative use of leverage Growth Equity • Patient capital and active management Aero &
Slide 60: Record level of inflows for Capital Markets Strategies in H1 2024
Record level of inflows for Capital Markets Strategies in H1 2024 driven by solid performance across a well-diversified range of products Highest level of net inflows in a half-year Performance recognition Solid momentum for short duration and dated funds 637 Dynamic demand from Spanish and Swiss in
Slide 61: Focus on Tactical Strategies
Focus on Tactical Strategies LEVERAGING ON TIKEHAU CAPITAL’S PLATFORM TO OFFER DIFFERENTIATED INVESTMENT SOLUTIONS INVESTMENT UNIVERSE 2 CONTRARIAN INVESTMENT PROPOSITIONS Broad investment scope providing multi-asset Special Opportunities Multi-Asset Solutions exposure and navigating across the capi
Slide 62: An active and accretive M&A strategy
An active and accretive M&A strategy SUCCESSFUL INTEGRATION OF PAST ACQUISITIONS What we look for in an acquisition 2020 AuM at acquisition AuM at 30 Sept. 2024 AuM CAGR International expansion €0.5bn €0.8bn +13% 2019 AuM at acquisition AuM at 30 Sept. 2024 AuM CAGR Business mix rebalancing €0.05bn
Slide 63: Fee-paying AuM and management fee rate by strategy
Fee-paying AuM and management fee rate by strategy in €m 2019 2020 2021 2022 2023 30 June 2023 30 June 2024 Real Assets 7,775 8,925 10,188 11,207 11,141 11,660 11,212 Credit 6,727 7,286 10,013 12,729 15,358 13,977 16,601 Capital Markets Strategies 3,810 4,184 5,124 4,078 4,644 4,299 5,417 Private Eq
Slide 64: Investment portfolio
Investment portfolio 78% OF THE INVESTMENT PORTFOLIO IS INVESTED IN TIKEHAU CAPITAL’S OWN STRATEGIES +€543m €(324)m €(60)m €4,016m €3,858m 896 795 (22%) Ecosystem & direct invest. Of which €428m Including returns of Negative fair value invested into the capital changes mainly Group’s own Asset resul
Slide 65: Financial indebtness and amortization plan
Financial indebtness and amortization plan 4.2 years of average debt maturity (1) 0.8 0.5 0.5 0.3 0.1 0.1 2019 Bond - €0.5bn 2021 Sustainable Bond - €0.5bn RCF - €0.8bn 2023 Sustainable Bond - €0.3bn USPP - 10 Y - $115m USPP - 12Y - $65m (1) At 30 September 2024. TIKEHAU CAPITAL INVESTOR PRESENTATIO
Slide 66: Capital structure
Capital structure Share capital ownership at 30 June 2024 Other shareholders and free float 1 Including Tikehau Capital Advisors(1) and other Management 19% entities(2) 2 Shareholders which are also shareholders of Tikehau Capital Fonds Stratégique 7% 1 Advisors and / or part of a shareholders’ agre
Slide 67: Tikehau Capital's simplified organizational chart
Tikehau Capital’s simplified organizational chart Founders & Management Strategic investors 66% 34% Tikehau Capital Advisors and Other shareholders other Management entities(1) (incl. free float) 58% 42% Tikehau Capital (TKO FP) At 30 June 2024. (1) Other entities controlled by AF&Co, MCH and the Ma
Slide 68: Shareholder-friendly allocation of carried interest
Shareholder-friendly allocation of carried interest Tikehau Capital: Group’s parent company whose securities are listed on Tikehau Capital the regulated market of Euronext Paris. The purpose of the Company is to 53.3% 26.7% invest directly or indirectly in the Group’s investment platforms Asset Mana
Slide 69: Strong Corporate Governance
Strong Corporate Governance A highly independent and experienced Supervisory Board Capital Allocation Committee Board composition Board Committees Role: assist the Managers in its 11 ▪ Audit & Risk Committee investment decisions and in Members, including 1 monitoring the financial performance non-vo
Slide 70: Tikehau Capital – Supervisory Board
Tikehau Capital – Supervisory Board INDEPENDENCE, EXPERIENCE AND EXPERTISE Christian de LABRIFFE Roger CANIARD Fonds Stratégique de Participations, Sophie COULON-RENOUVEL Maximilien DE LIMBURG STIRUM Jean-Pierre DENIS Chairman of the Supervisory board Head of MACSF Financial represented by Florence
Slide 71: Contacts
Contacts Shareholders and Investors contact Louis IGONET Théodora XU Head of Corporate Strategy, Investor Relations Director Development, and Investor txu@tikehaucapital.com Relations +33 (0) 1 40 06 18 56 ligonet@tikehaucapital.com +33 (0) 1 40 06 11 11 Analyst coverage Berenberg CIC Market Solutio
Slide 72: Disclaimer
Disclaimer By viewing or receiving or reading this Presentation (as such term is defined herein) or attending any This Presentation contains forward looking statements about the Group and its subsidiaries. These meeting where this Presentation is made, you agree to be bound by the limitations, quali
Slide 73: Disclaimer
Disclaimer This Presentation includes certain pro forma financial information about the Group. This pro forma a revolving credit facility to be subsequently repaid with investor contributions. financial information has been prepared on the basis of historical financial statements of the Calculations
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