Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — H1 2024 Earnings Presentation
46 slides from Tikehau Capital Sca's earnings presentation, Jul 30, 2024
Slide 1: H1 2024 Results Presentation
H1 2024 RESULTS PRESENTATION 30 JULY 2024
Slide 2: Today's Speakers
Today’s Speakers Henri Marcoux Frederic Giovansili Vincent Picot Sebastien Cossu Deputy CEO, Deputy CEO, Group CFO Co-Head of Real Estate France, Finance, Operations Franchise, Clients, Solutions Acquisition TIKEHAU CAPITAL H1 2024 RESULTS PRESENTATION 2
Slide 3: Agenda
1. Key highlights 4 1. Key highlights 4 Agenda 2. Operating highlights 6 2. Operating highlights 6 3. Financial highlights 22 3. Financial highlights 22 4. Outlook 24 4. Outlook 24 5. QA 26 5. Q&A 26 6. Appendix 27 6. Appendix 27
Slide 4: Key highlights
1. KEY HIGHLIGHTS TIKEHAU CAPITAL H1 2024 RESULTS PRESENTATION 4
Slide 5: H1 2024 highlights
H1 2024 highlights €45.6bn “All weather” platform with a diversified and complementary range of investment strategies AM AuM at 30 June 2024 €3.4bn Solid momentum for the firm’s credit solutions across public and private markets H1 2024 net inflows An increasingly diversified and global client base,
Slide 6: Sustainability achievements
Sustainability achievements Sustainability by design approach Continued growth for our thematic and External recognition impact platform 40% of companies with a (2) (3) sustainability roadmap in Private Equity 4 areas of focus 67% of new Direct and Corporate Lending deals with an ESG ratchet in H1 2
Slide 7: Operating highlights
2. OPERATING HIGHLIGHTS TIKEHAU CAPITAL H1 2024 RESULTS PRESENTATION 7
Slide 8: Dynamic fundraising momentum in the first half
Dynamic fundraising momentum in the first half H1 2024 fundraising driven by our Public and Private Debt expertise €3.4bn €4.4bn ~40 H1 2024 New institutional clients Capital Markets Strat. gross inflows onboarded in H1 2024 Private Equity Real Assets • Broad range of investment strategies 3.2 3.3 •
Slide 9: Solid progress in fundraising for flagship strategies
Solid progress in fundraising for flagship strategies EUROPEAN DIRECT LENDING PRIVATE EQUITY DECARBONIZATION SPECIAL OPPORTUNITIES €4-5bn €2-3bn €1bn target target target €3.3bn €620m €2.1bn €1.0bn(1) €610m €140m Vintage III Vintage IV Vintage V Vintage VI Vintage I Vintage II Vintage I Vintage II V
Slide 10: Record level of inflows for Capital Markets Strategies
Record level of inflows for Capital Markets Strategies driven by solid performance across a well-diversified range of products Highest level of net inflows in a half-year Key benefits for Tikehau Capital Solid momentum for short duration and dated funds 637 Global addressable client base Dynamic dem
Slide 11: Continued expansion of our platform and client base
Continued expansion of our platform and client base Most represented nationalities in Increasing share of international clients ~75% H1 2024 third-party inflows in our AuM of H1 2024 third-party inflows €45.6bn raised from international clients(1) Others Italy €40.5bn South France Korea 42% Israel H
Slide 12: 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 13: Further progress in the democratization of private markets
Further progress in the democratization of private markets Achievements at 30 June 2024 Increasing share of private clients ~35% in our AuM of H1 2024 third-party inflows raised from private clients >€1bn €45.6bn of total commitments for Private €40.5bn Debt unit-linked products since inception €1.2
Slide 14: Dynamic yet disciplined capital deployment
Dynamic yet disciplined capital deployment Selectivity 98% 97% 98% 99% rate(1) • Strong multi-local platform supporting the sourcing of compelling opportunities • Additional milestones in international deployment €2.8bn • Dynamic deal flow in Direct Lending coupled with high selectivity Private Equi
Slide 15: 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 +15% +25% 25% LTM Revenue growth LTM EBITDA growth >9,000 Average EBITDA margin Units across Real Estate pl
Slide 16: Agile and contrarian deployment approach in Real Estate (1/2)
Agile and contrarian deployment approach in Real Estate (1/2) February 2024 Acquisition of a shopping center in the North of Paris Acquisition through a club deal with Klepierre and institutional co-investors Mature asset with a stabilized rental flow Opportunistic transaction >11 million 188 95% Nu
Slide 17: Agile and contrarian deployment approach in Real Estate (2/2)
Agile and contrarian deployment approach in Real Estate (2/2) July 2024 Acquisition of real estate assets from Groupe Casino Signed agreements for the acquisition of a portfolio of 30 food retail assets (hypermarkets and supermarkets) Premises leased to the Intermarché, Carrefour, Auchan and Casino
Slide 18: Good realizations momentum
Good realizations momentum Cybersecurity Aerospace Solid exit pipeline across verticals Private €0.9bn Equity (Aerospace, Decarbonization, Growth) Private Equity Real Assets Continued disposal of mid-sized and Real granular assets notably from the portfolio Assets of residential assets in Iberia 0.8
Slide 19: Financial highlights
3. FINANCIAL HIGHLIGHTS TIKEHAU CAPITAL H1 2024 RESULTS PRESENTATION 19
Slide 20: Continued growth in Fee-Paying AuM
Continued growth in Fee-Paying AuM supporting long-term AM 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 +
Slide 21: Continued growth in management fees
Continued growth in management fees AM 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
Slide 22: Structural Core FRE growth offset by cyclical effects
Structural Core FRE growth offset by cyclical effects AM 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 strateg
Slide 23: Performance-related earnings, a material profit driver ahead
Performance-related earnings, a material profit driver ahead AM 13% yoy increase in AuM eligible to carried interest Our approach to carried interest Material embedded performance related revenues(1) +13% 20.5 200 Shareholder-friendly 180 18.2 allocation 15.8 123 Cautious P&L recognition 8.8 81 7.1
Slide 24: A €4bn growth-compounding investment portfolio
A €4bn growth-compounding investment portfolio INVEST 259 269 Number of investments +€398m €(239)m €(0)m €4,017m €3,858m Well-balanced exposure across Tikehau Capital strategies 904 Ecosystem & 795 (23%) Other(1) direct invest. Capital Markets Strat. €0.1bn Of which €301m Including returns Negative
Slide 25: 16% increase in realized portfolio revenues
16% increase in realized portfolio revenues INVEST 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 Tikehau Capital strategies H1 2023 H1 202
Slide 26: Simplified consolidated P&L
Simplified consolidated P&L GROUP €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 (3) Core Fe
Slide 27: Robust financial structure supporting our business model
Robust financial structure supporting our business model GROUP Simplified balance sheet at 30 June 2024 Total 5.1 5.1 0.3 Other €3.1bn €0.8bn 78% Other assets 0.9 liabilities Shareholders’ Equity, Short-term financial ESG-linked debt Cash Group share resources 0.2 Financial & equivalents 1.7 Debt St
Slide 28: Outlook
4. OUTLOOK TIKEHAU CAPITAL H1 2024 RESULTS PRESENTATION 28
Slide 29: A new presentation of our AuM highlighting our integrated global Credit platform
A new presentation of our AuM highlighting our integrated global Credit platform Current presentation New presentation(1) €bn €bn 0.5 0.5 Special Opportunities and Direct Lending Private Debt strategies to be 5.4 5.4 Corporate Lending included in a single 5.6 5.6 Secondary Private “Credit” business
Slide 30: 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 more, to fewer GPs Lower distributions from PE put constraints on LPs resources Broad range of investment strategies LPs look
Slide 31: 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 2026 AM AuM Solid fundraising pipeline for flagship funds, positive momentum for CLOs and CMS >€250m 2026 FRE Positive outlook for deployment and realization activity Mid-teens
Slide 32: Q&A
5. Q&A TIKEHAU CAPITAL H1 2024 RESULTS PRESENTATION 32
Slide 33: Appendix
6. APPENDIX TIKEHAU CAPITAL H1 2024 RESULTS PRESENTATION 33
Slide 34: Diversified and complementary value proposition
Diversified and complementary value proposition fit to accommodate allocation shifts Diversified and complementary asset classes Relevant value proposition Capital Markets Investment Activity Clients needs Long-term investment themes Strategies 79% of AuM within Yield Strategies Private Protection a
Slide 35: Solid deployment capabilities at a global scale
Solid deployment capabilities at a global scale PE Decarb. PE Decarb. strategy strategy July 2024 Dec. 2023 • Engineering Group specialized in energy transition • Utility infrastructure service provider and life sciences • Key figures • Key figures − FY23 revenues > €200m − >3,500 employees − 1,000
Slide 36: Agile and contrarian deployment approach in Real Estate
Agile and contrarian deployment approach in Real Estate July 2024 Residential project in Porto Acquisition of 5 plots of land from Goldman Sachs, to deliver up to 958 residential units Development of ~100,000 sqm with “Build to Rent” and “Built to Sell” schemes 40% discount vs. initial price 7th €1b
Slide 37: Capital Markets Strategies – solid track record across products
Capital Markets Strategies – solid track record across products Strong AuM growth since IPO Strong performance recognition +15% Dec. 2016-June 2024 CAGR 5.4 AuM at 28.06.24 Overall Rating Tikehau Short Duration €2,381m Tikehau Credit Court Terme €353m Tikehau European High yield €308m 1.9 Tikehau Su
Slide 38: 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% 9% 10% Dry Powder Dry Powder UK 15% 5% 15% €45.6bn Continental Europe(1) €45.6bn of AM AuM at 30.06.24 of AM AuM at 30.06.24 Real Estate 30% Top 15 sectors
Slide 39: APAC: an attractive region from an allocation perspective
APAC: an attractive region from an allocation perspective ~4% Global LP allocation to alternatives moved ...and is expected to further increase towards APAC in the past decade…(1) in the future of Alternative AuM as a % of GDP in APAC (vs. 11% globally) 3% 3% Under-allocation to alternative assets 2
Slide 40: 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 International investors(1) €19.1bn 8% 10% 1 United States 2018 9% 2 Italy 2015 +23% 3 United Kingdom 2013 Intern
Slide 41: 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 1% Insurance Private banks Distribution Private investors companies platform €13.6bn 5% 10% 30% 25% of AM AuM at 30 June 2024 €45.6bn AM AuM at 30 June 2024 37% Opale Capital’s l
Slide 42: 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 Private Debt 6,727 7,269 9,670 12,255 14,573 13,396 15,843 Capital Markets Strategies 3,810 4,184 5,124 4,078 4,644 4,299 5,417 Priva
Slide 43: Continued platform investing and disciplined cost management
Continued platform investing and disciplined cost management Stable AM operating expenses due to disciplined cost management 41% 99.7 100.2 of AM professionals located in Other operating international offices(1) costs(2) 29.7 (5%) 28.3 3% YoY AM headcount growth Selective hires in key functions and
Slide 44: Simplified consolidated P&L and balance sheet
Simplified consolidated P&L and balance sheet Simplified consolidated P&L Simplified consolidated balance sheet €m H1 2023 H1 2024 €m 31 Dec. 2023 30 June 2024 (1) Management fees & other revenues 156.1 155.9 Investment portfolio 3,858 4,017 Operating costs(2) (99.6) (100.2) Cash & cash equivalents
Slide 45: Portfolio revenues breakdown
Portfolio revenues breakdown in €m H1 2023 H1 2024 in €m H1 2023 H1 2024 Tikehau Capital funds 84.8 18.1 Dividends, coupons & distributions 82.2 94.0 Investments alongside Tikehau Capital funds (0.3) 9.5 Realized change in fair value 0.0 1.3 Tikehau Capital AM strategies 84.5 27.6 Realized portfolio
Slide 46: Slide 46