France’s Tikehau Capital Completes $300m Collateralized Fund Obligation

Tikehau Capital has successfully completed an inaugural Collateralized Fund Obligation (CFO) for an amount of $300m.

The CFO’s assets consist of interests in private debt funds that were mainly held on Tikehau Capital’s balance sheet. They notably include exposure to the firm’s flagship Direct Lending strategy and to its innovative Private Debt Secondaries strategy.

The rated debt and equity tranches have been placed to large US institutional investors while Tikehau Capital retains part of the equity. This transaction would have a positive impact on Tikehau Capital’s cash position over the life of the vehicle for a total amount of c. $0.2bn.

This vehicle provides investors with an innovative access to private debt, an asset class with highly appealing features in terms of risk-adjusted returns in the current environment.

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This transaction highlights US investors’ confidence in the Group’s strategies and represents a new milestone for Tikehau Capital expansion in North America and another illustration of the firm’s ability to structure and offer innovative products.

Tikehau Capital is a global alternative asset management group with €37.5 billion of assets under management (at 30 September 2022).

Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies.

Tikehau Capital is a founder-led team with a differentiated business model, a strong balance sheet, proprietary global deal flow and a track record of backing high quality companies and executives.

Source: Business Wire

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