PARIS–(BUSINESS WIRE)–Regulatory News:
Tikehau Capital (Paris:TKO), the global alternative asset management group, today announces its ambition to manage at least €5 billion of AUM dedicated exclusively to the fight against climate change by 2025. This will provide Tikehau Capital with sizable means to invest in companies and projects driving the decarbonisation of the economy to a more sustainable future. This significant commitment demonstrates the continued ambition of the Group to invest global savings towards a more resilient and inclusive economy, creating sustainable value for all.
For almost ten years, Tikehau Capital has been financing companies that actively support the energy transition, already attracting more than €1.5 billion in capital commitments to combat climate change across multiple investment strategies including private equity, private debt and capital markets strategies.
These strategies are classified “Article 9” as per the European Sustainable Finance Disclosure Regulation (SFDR), a set of EU rules which aim to make the sustainability profile of funds more comparable and better understood by end-investors. Going forward, the investment strategies that will allow Tikehau Capital to fulfill its ambition to exceed €5bn of AUM dedicated to the fight against climate change by 2025 will all be classified “Article 9” as per the SFDR.
As part of Tikehau Capital’s continued commitment to furthering a positive climate agenda, the Group has also today launched the Climate Action Centre, a platform that will harness financial innovation and focus on decarbonisation, biodiversity, sustainable agriculture and food, the circular economy and sustainable consumption. The Climate Action Centre will initially convene more than 30 investment professionals, ESG experts and senior advisors who are already working to deploy existing climate-focused investment strategies. In the coming months, the Center will be strengthened with the addition of several climate and sustainable finance specialists.
The Climate Action Centre will be headed by Pierre Abadie, who has been appointed Group Climate Director, in addition to his existing role as Co-head of Tikehau Capital’s T2 Energy Transition Private Equity fund. Pierre will work closely with Cécile Cabanis, Group Deputy CEO, to ensure that the Group’s climate-related objectives are fully integrated into Tikehau Capital’s impact strategy and ESG approach.
Pierre Abadie, Group Climate Director of Tikehau Capital said: “The decarbonisation of our economy is essential in limiting global warming to below 1.5°C. With the launch of the Climate Action Centre, we want to accelerate our commitment towards combatting climate change across our investment strategies with the objective of contributing to halving CO2 emissions by 2030.”
These developments demonstrate Tikehau Capital’s ambition to build upon its existing expertise and advance its efforts in tackling the climate emergency. The Group is a longstanding pioneer of climate action, as demonstrated by the numerous initiatives launched over the past decade, including:
– A series of investments in renewable energy providers that have collectively contributed close to 5 gigawatts of production capacity.
– The launch of the T2 Energy Transition Private Equity fund in 2018, one of the first funds singularly committed to the energy transition and the decarbonisation of the economy. To date, the Europe-focused climate strategy, which manages more than €1 billion, has deployed more than €500 million by investing in nine SMEs and SMIs driving the energy transition.
– The launch of several dedicated climate-focused investment strategies, including an impact lending private debt fund and a high-yield impact credit fund, both of which are designed to finance companies which have the potential to enable the global shift towards a net zero carbon economy.
– In March 2021, Tikehau Capital successfully issued its inaugural sustainable bond issuance raising €500 million, the first public sustainable benchmark bond issued by an alternative asset management firm in Europe. The proceeds of the bond, which was placed with more than 100 investors globally, will be used to invest in sustainable assets or in the Group’s ESG-focused investment funds. Following this successful issuance, and taking into account the refinancing of the Group’s undrawn revolving credit facility in July 2021, ESG-linked debt account for around 60% of the Group’s total debt to date.
– In April 2021, Tikehau Capital announced the launch of a private equity strategy dedicated to decarbonisation in North America that aims to replicate the success and investment philosophy of the European T2 Energy Transition private equity fund.
Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, said: “We strongly believe that we can have a significant impact on climate change through our investment approach, which is why we are committing to increase our investment in fighting the climate emergency. With the launch of our Climate Action Centre, we want to channel the Group’s expertise, entrepreneurial spirit and agility towards the decarbonisation of the economy. Pierre Abadie’s climate expertise and conviction, combined with the teams that are working across our climate strategies, will be key to the success of this major project.”
ABOUT TIKEHAU CAPITAL
Tikehau Capital is a global alternative asset management group with €30.9 billion of assets under management (as of 30 June 2021). 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.
Deeply rooted in the real economy, Tikehau Capital provides bespoke and innovative alternative financing solutions to companies it invests in and seeks to create long-term value for its investors, while generating positive impacts on society. Leveraging its strong equity base (€2.9 billion of shareholders’ equity as of 30 June 2021), the firm invests its own capital alongside its investor-clients within each of its strategies.
Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 629 employees (as of 30 June 2021) across its 12 offices in Europe, Asia and North America. Tikehau Capital is listed in compartment A of the regulated Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP).
For more information, please visit: www.tikehaucapital.com
Our latest Sustainability Report is available here.
This document does not constitute an offer of securities for sale or investment advisory services. It contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future earnings and profit, and targets are not guaranteed.
Certain statements and forecasted data are based on current forecasts, prevailing market and economic conditions, estimates, projections and opinions of Tikehau Capital and/or its affiliates. Due to various risks and uncertainties. actual results may differ materially from those reflected or expected in such forward-looking statements or in any of the case studies or forecasts. All references to Tikehau Capital’s advisory activities in the US or with respect to US persons relate to Tikehau Capital North America.