Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — Investor Presentation (December 2023)
43 slides from Tikehau Capital Sca's investor presentation, December 2023
Slide 1: Introduction to Tikehau Capital
INTRODUCTION TO TIKEHAU CAPITAL DECEMBER 2023
Slide 2: A key player in financing the economy
A key player in financing the economy Global savings The economy are growing is in need of financing Demographic growth Growing financing needs (>20m SMEs in Europe) Population ageing Flexible financing solutions offered by Search for yield and excess return Tikehau Capital (debt, equity, real asset
Slide 3: A growing global alternative asset manager
A growing global alternative asset manager TIKEHAU CAPITAL Founded in IPO in €42.0bn €3.1bn 15 757 2004 March 2017 of total AuM(1) of shareholders’ equity(2) Countries(1) employees(1) • Complementary • Strong equity base asset classes • Capital allocation priority: • Recurring and predictable ASSET
Slide 4: 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 5: Structural tailwinds for alternatives
Structural tailwinds for alternatives Alternative assets to represent 22% of global AuM by 2027… …but capturing 55% of global revenues Passive Management CAGR CAGR +5% $470bn +5% $128Tn CAGR CAGR $386bn 29 22% +6% $98Tn +6% 258 55% 20 21% $260bn 193 50% $65Tn 9 14% 103 40% $36Tn $133bn 4 11% 42 31%
Slide 6: A significant growth journey
A significant growth journey 2016-9M 2023(1) CAGR 2016 2023(3) €42.0bn +24% x4 (4) +13% # Investment professionals 57 247 x4.2 +83% in >6 years +35% # Sales professionals 8 95 x12 Group AuM €10bn AuM from +20% non-domestic investors (€bn) 2 16 x8 5 offices 15 offices 31/12/2016 30/09/2023 Private De
Slide 7: A solid track record of profitable growth
A solid track record of profitable growth AM revenues Fee-Related Earnings Shareholder returns (1) +41% (1) +81% 304 97 0.40 0.70 0.50 33% FRE 7% margin 39 0.60 3 €m €m 2016 2022 2016 2022 0.50 0.50 0.50 0.25 Management fee rate Shareholders’ Equity 2017 2018 2019 2020 2021 2022 +22 bps 97 3,144 Ord
Slide 8: Alignment of interests: a key differentiator
Alignment of interests: a key differentiator Unique 3-level alignment of interests powered by a robust equity base Management Management is the #1 shareholder owning 57% of the Group’s capital 53% of carried interest(1) retained by the firm Shareholders Dividend policy: distribute >80% of Asset Mana
Slide 9: Capital structure
Capital structure Share capital ownership 1 Including Tikehau Capital Advisors (56.2%), which owns 100% of Tikehau 4 Capital Commandité, the general partner of Tikehau Capital SCA (the listed Other shareholders company) and free float 20% 3 2 Shareholders which are also shareholders of Tikehau Capit
Slide 10: A well-balanced investment portfolio
A well-balanced investment portfolio 78% of investment portfolio exposed to Tikehau Capital strategies (€m) 3,527 3,667 794 2,685 Co-invest. & SPACs 2,410 Capital Markets Strategies 2,336 3% 5% 2,873 2,083 79% (78%) 33% Private Debt €2,873m 1,565 79% 33% Ecosystem and direct 68% Private Equity inves
Slide 11: Strategy & Outlook
01 STRATEGY & OUTLOOK TIKEHAU CAPITAL INTRODUCTION TO TIKEHAU CAPITAL 11
Slide 12: Our conviction-based thematic investments
Our conviction-based thematic investments Long-lasting expertise in mid-market financing across asset classes and strategies TACTICAL CAPITAL MARKETS PRIVATE DEBT REAL ASSETS PRIVATE EQUITY STRATEGIES STRATEGIES Mid-market financing Asset transformation and Growth Special financing Conviction-based
Slide 13: A large spectrum of investment expertise
A large spectrum of investment expertise A COMPREHENSIVE OFFERING ACROSS ASSET CLASSES AND INVESTMENT VEHICLES INVESTMENT ACTIVITY €0.5bn CAPITAL MARKETS PRIVATE DEBT STRATEGIES €17.2bn €4.4bn • Direct Lending • Fixed Income • Corporate Lending • Equity Secondaries €42.0bn • • Leverage Loans PRIVATE
Slide 14: 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 Solid and selective deployment level 97% 15 offices Selectivity rate (1)95% at 30 September 2023 6.9 €4.2bn Private Equity Industrial par
Slide 15: Robust realizations momentum
Robust realizations momentum Example of exits Private Equity Real Assets Energy Transition Value-add Real Estate 1.8 +20% 9m 21-22 €1.5bn 1.5 average (€1.3bn) Private Equity Real Assets 1.4 Private Debt Tactical Strategies 1.1 Private Debt Direct Lending Special Opportunities €bn 2021 2022 9m 2021 9
Slide 16: Material acceleration in fundraising
Material acceleration in fundraising Asset Management Net New Money €4.7bn 6.4 6.4 4.3 Capital Markets Strategies 3.8 1.4 1.1 Private Equity Resilient fundraising despite a complex Q3 1.4 environment 3.9 Real Assets Relevant strategies Solid track-record 3.2 3.3 Multi-local footprint H1 2.4 Private
Slide 17: An increasingly global & diversified client base
An increasingly global & diversified client base Strong client recognition in an out of our home market Increasing share of private investors within our client base 1% 38% 7% 10% 28% 6% 3% 10% 7% Tikehau Capital Tikehau Capital €40.5bn AM, Banks, Instit. €40.5bn 22% France HNWI, Retail, Europe(2) Pr
Slide 18: Our multilocal platform, a key asset
Our multilocal platform, a key asset OUR PLATFORM KEEPS EXPANDING IN TERMS OF PEOPLE AND GEOGRAPHIES Amsterdam London Luxembourg 15 offices Brussels Strong network of Frankfurt Seoul senior advisors Paris Israel across asset classes New York Milan Tokyo 757 employees Madrid Abu Dhabi Zurich Singapor
Slide 19: High-profile partners across our platform
High-profile partners across our platform Industrial partners Regenerative Aerospace Real Estate debt Energy transition agriculture Private banks, insurers Financial partners Public entities TIKEHAU CAPITAL INTRODUCTION TO TIKEHAU CAPITAL 19
Slide 20: A pioneer in sustainability
A pioneer in sustainability Finalization of the initial Net Zero Asset Manager targets Signatory of the Net Zero Asset Manager Initiative €2.4bn of Climate & Biodiversity AUM at 30 June 2023 >60% of Group AUM in SFDR Article T2 €1bn closing 8 & 9 funds at 30 June 2023 of variable compensation A+ 20%
Slide 21: Creation of sustainable value
Creation of sustainable value OUR SUSTAINABILITY-THEMED & IMPACT PLATFORM: FIT TO ADDRESS TRANSITION & RESILIENCE PRIVATE EQUITY REAL ASSETS • Energy efficiency solutions Decarbonization Value add impact • Increase renewable energy supply DECARBONIZATION / Green Assets • Expand low carbon mobility C
Slide 22: A very strong outlook
A very strong outlook Targets Improvement vs 2022 Scalability >€65bn x1.8 2026 AM AuM vs. €38bn of 2022 AM AuM Operating leverage >€250m 2026 FRE x2.6 vs. 2022 FRE Value creation Mid-teens vs. 10.2% Return on Equity by 2026 in 2022 As of 30 September 2023. Achievement of objectives and forecasts is
Slide 23: Financials
02 FINANCIALS TIKEHAU CAPITAL INTRODUCTION TO TIKEHAU CAPITAL 23
Slide 24: Double-digit management fees growth
Double-digit management fees growth 160 122 144 +12% 156 +12% H1 2023 increase in line with Fee-Paying AuM growth Performance fees & Management fees YoY growth carried interest 139 97% Strong visibility in Management fees of H1 2023 AM revenues are fee generation 121 and others(1) management fees +1
Slide 25: 20% FRE growth year-over-year in H1 2023
20% FRE growth year-over-year in H1 2023 FRE margin Adjusted FRE(2) margin 29.2% 33.5% 31.3% 36.8% +20% 156 FRE YoY growth 121 57 9 Strong increase in FRE generation Adjusted FRE(2) 47 107 over the LTM 99 Expenses linked to Expenses linked to 9 share-based payment share-based payment 6 49 6 transact
Slide 26: Realized revenues represent >95% of portfolio revenues in H1 2023
Realized revenues represent >95% of portfolio revenues in H1 2023 275 • High basis of comparison in H1 2022 • Growing share of realized revenues coming from Tikehau Capital strategies • Strong contribution from Growth Equity and Energy Transition funds to unrealized 129 revenues in H1 2023, reflecti
Slide 27: Simplified consolidated P&L
Simplified consolidated P&L €m H1 2022 H1 2023 • +20% FRE YoY growth Fee-Related Earnings (FRE) 40.7 48.9 • Adjusted FRE (excl. linked to share-based payment transactions(1)) of €57m (+23% YoY) FRE margin 29.2% 31.3% Asset Management EBIT 45.5 53.1 AM EBIT margin 31.6% 33.1% Investment portfolio rev
Slide 28: Consolidated balance sheet
Consolidated balance sheet Simplified balance sheet(1) Total €4.8bn €4.8bn Robust financial structure supporting the business model(1) Other €0.2bn liabilities €3.1bn €1.1bn 65% Other assets €0.9bn Financial Cash €0.3bn €1.5bn Debt & equivalents Shareholders’ Equity, Short-term financial ESG-linked
Slide 29: Appendix
APPENDIX TIKEHAU CAPITAL INTRODUCTION TO TIKEHAU CAPITAL 29
Slide 30: An experienced and committed leadership team (1/3)
An experienced and committed leadership team (1/3) CO-FOUNDERS GROUP MANAGEMENT Cécile CABANIS Thomas FRIEDBERGER Frédéric GIOVANSILI Group Deputy Chief Executive Officer Group Deputy Chief Executive Officer, Co-Chief Group Deputy Chief Executive Officer Investment Officer, Chief Executive Officer D
Slide 31: An experienced and committed leadership team (2/3)
An experienced and committed leadership team (2/3) HEADS OF BUSINESS LINES AND OPERATIONAL FUNCTIONS HEADS OF COUNTRY/REGIONS Rodolfo CACERES Emmanuel LAILLIER Raphaël THUIN Carmen ALONSO Head of Credit Research Head of Private Equity activity Dominik P. FELSMANN Mark PENSAERT Head of Capital Market
Slide 32: An experienced and committed leadership team (3/3)
An experienced and committed leadership team (3/3) EXPERTISE TEAM CAPITAL REAL PRIVATE MARKETS TACTICAL PRIVATE DEBT ASSETS EQUITY STRATEGIES STRATEGIES Cécile Maxime Guillaume Jean-Marc Emmanuel Mathieu Raphaël Peter MAYER-LÉVI LAURENT-BELLUE ARNAUD PETER LAILLIER BADJECK THUIN CIRENZA Head of Priv
Slide 33: High-quality portfolio of companies and assets
High-quality portfolio of companies and assets LTM REVENUE GROWTH LTM EBITDA GROWTH EBITDA MARGIN AVERAGE LEVERAGE PRIVATE DEBT(1) +14% +13% 19% 4.4x (2) PRIVATE EQUITY(3) +24% +25% 20% 3.9x AVERAGE RENT COLLECTION RATE AVERAGE OCCUPANCY RATE AVERAGE LTV REAL ESTATE(4) 95% ~90% 25% (1) Across Tikeha
Slide 34: Private Debt
Private Debt TIKEHAU CAPITAL EXPERTISE OUTLOOK Secondaries Continue to scale up Direct Lending, Secondaries and Impact Lending strategies (5%) European Direct Lending (38%) Corporate Lending Expand SMAs and evergreen unit-linked vehicles Leveraged (14%) Loans (41%) €17.2bn Direct Lending (54%) Europ
Slide 35: Private Equity & Special Opportunities
Private Equity & Special Opportunities TIKEHAU CAPITAL EXPERTISE OUTLOOK Others (3%) PRIVATE EQUITY Special Opportunities Aero & Expand Decarbonization platform globally (21%) Cybersecurity (25%) Scale up Aero and Cybersecurity strategies Secondaries €5.9bn Raise Regenerative Agriculture strategies
Slide 36: 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 €13.9bn 3 of AuM(2) Expand our listed REITs in Fran
Slide 37: 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) >8,500 25% €2.1bn • Prudent and targeted investment approach, while taking advantage
Slide 38: Capital Markets Strategies
Capital Markets Strategies TIKEHAU CAPITAL EXPERTISE Flexible & Equity (13%) High Yield, Investment Grade corporates and Subordinated financials in various open-ended funds and managed accounts Fixed Income Value Quality and Reasonable Valuation equity stocks (87%) €4.4bn of AuM(1) Conviction based
Slide 39: Democratizing private markets
Democratizing private markets A wide range of solutions already available to private investors Tikehau Capital will keep moving forward Open-ended funds SCPI(1) Listed REITs ELTIF solutions RECENT INITIATIVES Mandates and feeders distributed through private banks 2019 2020 2021 2022-2023 Dedicated E
Slide 40: Contacts
Contacts Shareholders and Investors contact Louis IGONET Théodora XU Head of Corporate Strategy, Investor Relations Officer Development and Investor Relations txu@tikehaucapital.com ligonet@tikehaucapital.com +33 (0) 1 40 06 18 56 +33 (0) 1 40 06 11 11 Analyst coverage Bank of America CIC Market Sol
Slide 41: 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 42: Disclaimer
Disclaimer This Presentation includes certain pro forma financial information about the Group. This pro forma Calculations of Gross Return at the investment level use the date of the relevant investment without financial information has been prepared on the basis of historical financial statements o
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