Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — FY2024 Earnings Presentation
47 slides from Tikehau Capital Sca's earnings presentation, Feb 20, 2025
Slide 1: Tikehau Capital FY24 Earnings Presentation
TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 20 FEBRUARY 2025
Slide 2: Today's Speakers
Today’s Speakers Antoine Flamarion Henri Marcoux Vincent Picot Co-founder Deputy CEO, Group CFO France, Finance, Operations TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 2
Slide 3: Agenda
1. Key highlights 4 1. Key highlights 4 Agenda 2. Operating highlights 11 2. Operating highlights 11 3. Financial highlights 19 3. Financial highlights 19 4. Outlook 33 4. Outlook 33 5. QA 37 5. Q&A 37 6. Appendix 38 6. Appendix 38
Slide 4: Key Highlights
1. KEY HIGHLIGHTS TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 4
Slide 5: Dynamics at work in the Alternative AM sector
Dynamics at work in the Alternative AM sector The Tikehau Capital edge Institutional capital Large asset allocators want to work with fewer GPs, across a Global platform across 17 countries concentration broader capability set in terms of asset classes and product types & 4 asset classes €5bn consol
Slide 6: A significant growth journey with increased profitability generation
A significant growth journey with increased profitability generation Asset Management AuM grew at a +24% CAGR since 2016 Core FRE(1) grew at a +63% CAGR since 2016 €0.05 Core FRE / share €0.75 €49bn €132m +24% CAGR +63% CAGR €9bn €3m 31/12/2016 31/12/2024 31/12/2016 31/12/2024 Credit Real Assets Pri
Slide 7: Tikehau Capital has outpaced its sector in fundraising since 2022
Tikehau Capital has outpaced its sector in fundraising since 2022 Gross inflows as a % of Fee-Paying AuM (BoP) €27bn 36% 30% Cumulative gross inflows 28% 27% 28% over 2022-2024 Tikehau Capital average 16% 16% 23% Peers average €20bn Cumulative net inflows over 2022-2024 2022 2023 2024 Tikehau Capita
Slide 8: Since our latest Capital Markets Day...
Since our latest Capital Markets Day... €27bn +12% 113% Cumulative gross inflows Fee-paying AuM of AM EBIT distributed to shareholders over 2022-2024 CAGR 2021-2024 on average over 2022-2024 Past performance does not predict future returns. TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 8
Slide 9: Delivering in 2024 on the core pillars of our strategy
Delivering in 2024 on the core pillars of our strategy 1 2 3 Successful diversification Focus on investment discipline, Financial performance driven by of capital formation across asset impact and sustainable value operating leverage and Tikehau classes, geographies creation Capital strategies and c
Slide 10: Continued increase in shareholder returns
Continued increase in shareholder returns Payout ratio(1) 33%(2) 38% 74% 90% Progressive payout ratio Target of In % of AM EBIT >80% 92%(2) 115% 112% 111% of AM EBIT distributed to (3) shareholders overachieved 0.80 0.40 DPS in € 0.60 0.70 0.75 +7% increase in 2024 proposed DPS 2021 2022 2023 2024 O
Slide 11: Operating Highlights
2. OPERATING HIGHLIGHTS TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 11
Slide 12: Sustained momentum in deployment and realizations in 2024
Sustained momentum in deployment and realizations in 2024 Solid and selective deployment level Robust level of value-creating exits 6.9 5.9 €5.6bn 2.4 €2.1bn €18.4bn Private Equity Real Assets 1.8 Private Equity €6.4bn Real Assets Cumulative Cumulative deployments realizations since 2022 Credit Cred
Slide 13: At the forefront of AI and digital infrastructure investments
At the forefront of AI and digital infrastructure investments Our expertise in figures(1) Investing in digital trust ecosystem Latest tech / AI / Space investments €1bn • Data Analytics Q1 2025 invested to support the growth of Cyber-enabling • Machine Learning Q1 2025 companies in the AI and cybers
Slide 14: Record level of fundraising in 2024
Record level of fundraising in 2024 +41% growth in net new money in 2024 2024 achievements Complementary Strong demand for our products and relevant strategies 7.0 +41% Value-add strategies €9.3bn €7.0bn (21%) 2024 gross inflows 2024 net inflows 5.0 Solid track-record 3.9 Net new money increased 7 Y
Slide 15: 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 €1.2bn target target (>€1bn target) x2 €3.3bn ~€3bn €2.1bn €618m €1.0bn(1) >€1bn €610m €140m Vintage III Vintage IV Vintage V Vintage VI Vintage I Vintage
Slide 16: Continued expansion of our platform and client base
Continued expansion of our platform and client base Further progress in addressing private clients’ growing demand An increasingly global client base AuM from private clients AuM from international (1) clients Others €15bn Italy UK €22bn South +30% Korea +28% €11bn €17bn ~30% Israel Top nationalitie
Slide 17: Advancing our partnership with Nikko AM
Advancing our partnership with Nikko AM Partnership progress – Dec. 2024 Distribution Agreement for Tikehau Capital funds Distribution Agreement European Direct Lending, Secondary Private Debt, ~€1bn ~€0.5bn Decarbonization Private Equity Leads Advanced stage leads JV incorporated Establishment of a
Slide 18: Sustainability achievements
Sustainability achievements Sustainability by design approach Continued growth for our thematic and External recognition impact platform 50% of companies with a (3) sustainability roadmap in Private Equity (2) 4 areas of focus 65% of new Direct and Corporate Lending deals with an ESG ratchet in 2024
Slide 19: Financial Highlights
3. FINANCIAL HIGHLIGHTS TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 19
Slide 20: Asset Management
3.1 FINANCIAL HIGHLIGHTS ASSET MANAGEMENT TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 20
Slide 21: Double digit growth in Fee-Paying AuM, supporting long-term revenue
Double digit growth in Fee-Paying AuM, supporting long-term revenue AM 49.0 42.8 KPI mainly linked to fundraising on strategies charging fees on capital deployed and Non fee-paying 4.9 fundraising on Private Equity funds which are not yet activated Future fee-paying 4.2 +14% +14% 39.8 Driven by infl
Slide 22: Continued growth in Asset Management revenue
Continued growth in Asset Management revenue AM 351 322 14 • Performance fees mainly coming from Capital Markets Strategies’ fixed income funds which delivered strong returns in 2024 10 337 +8% • 8% increase on a high comparison basis in 2023 linked to upfront subscription fees generated from gross
Slide 23: Acceleration in Core FRE and AM EBIT generation in H2 2024
Acceleration in Core FRE and AM EBIT generation in H2 2024 AM AM EBIT 107.0 116.8 126.3 Strong Core FRE and AM EBIT margin pick up in H2 2024 Core FRE 108.6 123.0 132.0 +6pts +8pts Core FRE(1) margin 37.0% 39.4% 39.2% Core FRE margin 42.1% AM EBIT margin 39.5% Management fees 35.7% and others(2) 31.
Slide 24: Performance-related earnings, a material profit driver ahead
Performance-related earnings, a material profit driver ahead AM 15% yoy increase in AuM eligible to carried interest Our approach to carried interest Material embedded performance related revenues(1) +15% 22.6 Shareholder-friendly 19.6 allocation 8.5 Cautious P&L recognition ~€210m As of 30 Septembe
Slide 25: Investment Portfolio
3.1 FINANCIAL HIGHLIGHTS INVESTMENT PORTFOLIO TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 25
Slide 26: A €4bn granular investment portfolio, high skin in the game
A €4bn granular investment portfolio, high skin in the game INVEST Number of investments 259 288 +€719m €(613)m Well-balanced exposure across Tikehau Capital strategies +€38m €4,001m €3,858m Other(1) Capital Markets Strat. €0.1bn Ecosystem & 1,053 795 €0.1bn direct invest. (23%) Negative fair value
Slide 27: Dynamic portfolio management in 2024
Dynamic portfolio management in 2024 INVEST +€719m €(613)m Investments Divestments and returns of capital Tikehau Capital strategies Ecosystem / direct investments Capital reimbursed driven by several of the firm’s +€530m +€189m CLOs, credit secondary and aerospace strategies Co-invest. (5%) Investm
Slide 28: 16% increase in portfolio revenues, with an acceleration in H2
16% increase in portfolio revenues, with an acceleration in H2 INVEST Mainly driven by significant growth for +65% Growth in H2 2024 (vs. H1 2024) +16% 207 Tikehau Capital Private Equity and 179 Credit strategies Realized revenues growth driven by Tikehau Capital strategies 202 202 Ecosystem & Reali
Slide 29: Financial Statements
3.1 FINANCIAL HIGHLIGHTS FINANCIAL STATEMENTS TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 29
Slide 30: Profit generation accelerated in H2 2024
Profit generation accelerated in H2 2024 GROUP €m FY 2023 FY 2024 % change Net profit generation accelerated in AM EBIT 116.8 126.3 +8% Solid 2024 operating performance H2 2024 (+71% vs. H1 2024) Investment portfolio revenues 179.2 207.1 +16% Corporate expenses (63.8) (63.0) (1%) 155.8 57.5 Increase
Slide 31: Cash generation on the right track
Cash generation on the right track GROUP Cash generation > revenue generation Improvement in Free Cash Flow(1) generation • IFRS revenues only capture a portion of portfolio €m FY 2023 FY 2024 gross cash flow generation Asset Management revenues 316 333 • Gross cash flow includes dividends / coupons
Slide 32: Balance sheet at 31 December 2024
Balance sheet at 31 December 2024 GROUP €m 31 Dec. 2023 31 Dec. 2024 Investment portfolio €3.2bn €1.0bn 78% 3,858 4,001 Cash & cash equivalents 228 337 Other current & non-current assets 818 859 Shareholders’ Equity, Short-term financial ESG-linked debt Total assets 4,905 5,197 Group share resources
Slide 33: Outlook
4. OUTLOOK TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 33
Slide 34: Capturing future growth for our Asset Management business
Capturing future growth for our Asset Management business Key priorities Action plan Strategic levers Source large allocations and Organic access larger transactions 1 UNLOCK LARGE & HYBRID ASSET OWNERS development Extend our liability maturity Bespoke mandates, 2 ACCESS PERMANENT POOLS OF CAPITAL c
Slide 35: Unlocking co-investment potential with our new Investment and Capital Solutions team
Unlocking co-investment potential with our new Investment and Capital Solutions team Access a new ecosystem of large and sophisticated investors focused on direct deals Optimize and €50m leverage use of Target ticket size per deal balance sheet Enhance Tikehau Capital offerings, cross-selling and ac
Slide 36: Maximizing value creation through our balance sheet
Maximizing value creation through our balance sheet Investment portfolio evolution Ecosystem & direct investments €4.0bn Capital allocation priorities Tikehau Capital strategies Prioritize active capital rotation and capital recycling Investment Maintain alignment of interests while reducing capital
Slide 37: Q&A
5. Q&A TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 37
Slide 38: Appendix
6. APPENDIX TIKEHAU CAPITAL FY24 EARNINGS PRESENTATION 38
Slide 39: Delivering solid growth in 2024
Delivering solid growth in 2024 Asset Management AuM AM revenues Core Fee-Related Earnings(1) Total portfolio revenue Net result before tax YoY growth +15% +9% +7% +16% +9% Core FRE margin 39% 39% 207 210 351 49 132 192 322 123 179 43 €bn €m €m €m €m 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024
Slide 40: Capacity to serve a variety of evolving client needs and long-term investment themes
Capacity to serve a variety of evolving client needs and long-term investment themes Diversified and complementary asset classes Relevant value proposition Capital Markets Investment Activity Clients needs Long-term investment themes 0.6 Strategies 5.7 78% of AuM within Private Yield Strategies Prot
Slide 41: Dynamic yet disciplined capital deployment
Dynamic yet disciplined capital deployment Step-up in deployment in line with Multi-local platform in place the platform’s expansion Recent examples Selectivity >95% >95% 99% ~€130m ~€150m 17 offices rate (1) Private Equity 5.6 decarbonization +35% 4.2 ~€65m ~€60m Industrial partners 2.7 Direct Lend
Slide 42: 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% +38% 25% LTM Revenue growth LTM EBITDA growth >9,000 Average EBITDA margin Units across Real Estate pl
Slide 43: Good realizations momentum
Good realizations momentum Aerospace and Defence Aerospace and Defence Private €2.1bn Equity 3.0x 60% 2.3x 29% Gross MOIC Gross IRR Gross MOIC Gross IRR Private Equity Real Assets Continued disposal of mid-sized and Real Assets granular assets notably from the portfolio 2.4 of residential assets in
Slide 44: 2025 fundraising priorities: Flagship strategies
2025 fundraising priorities Launch date Timeline End date(1) Target size Raised since launch EUROPEAN DIRECT LENDING (6th vintage) Q1 2023 Q3 2025 €4-5bn ~€3bn Flagship strategies PRIVATE EQUITY DECARBONIZATION Q2 2023 Q4 2025 €2-3bn ~€1bn (2nd vintage) PRIVATE EQUITY AEROSPACE Q3 2024 2026 ~€800m €
Slide 45: Fee-paying AuM and management fee rate by strategy
Fee-paying AuM and management fee rate by strategy in €m 2022 2023 2024 Real Assets 11,207 11,141 11,538 Credit 12,729 15,358 17,670 Capital Markets Strategies 4,078 4,644 5,732 Private Equity 3,403 3,805 4,811 Total fee-paying AuM 31,418 34,947 39,751 in bps 2022 2023 2024 Real Assets 108 100 86 Cr
Slide 46: Portfolio revenues breakdown
Portfolio revenues breakdown in €m 2023 2024 in €m 2023 2024 Tikehau Capital funds 165.6 101.7 Dividends, coupons & distributions 189.7 195.3 Investments alongside Tikehau Capital funds 13.1 21.9 Realized change in fair value (0.2) 6.4 Tikehau Capital AM strategies 178.7 123.6 Realized portfolio rev
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