Tikehau Capital, a globally operating alternative asset manager, has completed the final closing of its sixth European Direct Lending strategy. The fund's volume amounts to EUR 5.2 billion, exclusive of external debt. This sum represents an increase of nearly 60 per cent compared to the predecessor fund and underscores the continued confidence of institutional investors in the company's investment approach in the European mid-market segment.
The fund's investment phase began in March of the current year. Since then, 30 transactions have already been successfully concluded through this strategy. Furthermore, the fund has recorded four exits with double-digit returns. This demonstrates Tikehau Capital's capacity for selective and disciplined capital management. To date, 44 per cent of the fund's capital is already invested in European companies with established business models and a solid competitive position. This results from a consistent due diligence process to identify attractive investment opportunities.
The fund's portfolio exhibits a high degree of diversification, with an average sector allocation of ten per cent. The initial net debt relative to EBITDA of the acquired companies was limited to a value of 4.0x and currently stands at 3.5x, supported by the performance of the underlying portfolio companies. This conservative metric reflects the fund's risk appetite and management.
The fund's investor base is global and heterogeneously structured. A significant portion of the capital commitments came from investors outside Europe, with 18 per cent from North America and 28 per cent from Asia and the Middle East. This highlights the international acceptance of Tikehau Capital's investment approach in direct lending.
Tikehau Capital's private debt team, comprising 30 investment professionals, continues to focus on investment opportunities in the European core mid-market segment. They preferably collaborate with established private equity sponsors, with whom trusted relationships have been built over several fund generations. This network provides access to high-quality transactions and supports the company's strategy.
With its latest fund, Tikehau Capital reaffirms its commitment to support European companies with tailored financing solutions. The selective investment approach will continue to be pursued, with capital preservation and broad portfolio diversification as primary objectives. The consistent implementation of these principles underpins Tikehau Capital's position as a relevant player in the European direct lending market.
