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Tikehau Capital doubles fundraising from Asia as demand for European private credit grows
Mathieu Chabran, co-founder of Tikehau, says the firm's choice to steer clear of US private credit was due to the saturated nature of the market there. PHOTO: TIKEHAU CAPITAL
[SINGAPORE] French private-markets firm Tikehau Capital said that it has doubled funds raised from Asia between 2024 and 2025, without disclosing specific figures. It attributed this to regional investors increasingly turning to Europe in search of diversification.
Louis d’Estienne d’Orves, head of Asia-Pacific at Tikehau, told The Business Times in a recent interview that this shift reflects a broader reallocation, rather than a wholesale move away from the United States.
“Obviously it’s not US against Europe; it’s more about reallocating slightly after Liberation Day,” he said, referring to US President Donald Trump’s broad package of import duties announced on Apr 2, 2025. “We have strong traffic on the private-debt side, private equity and on the real estate side.”
With more than US$60 billion in assets under management (AUM) and a track record of over 20 years in Europe, Tikehau is positioning itself as an option for Asian investors seeking exposure beyond US markets. Singapore investment company Temasek is also a shareholder.
Capitalising on that, Tikehau is growing its European direct lending funds, a segment that private wealth in Asia is particularly interested in. The firm recently closed its sixth European direct lending fund with an AUM of 4.8 billion euros (S$7.1 billion).
Asian limited partners (LPs) account for between 25 and 40 per cent of Tikehau’s capital raised across strategies – a notable shift, with the region contributing a larger share of inflows than before.
Currency considerations are also shaping allocations. Some investors are drawn to euro-denominated assets amid rising hedging costs for US-dollar exposures.
Mathieu Chabran, co-founder of the firm, noted: “You’ve got a currency issue – the cost of hedging becomes so expensive that many of them want to match their euro liabilities with euro origination.”
A key difference between Tikehau and other private-credit players is that the French firm has steered clear of the US private-credit market.
“I found the US market already very crowded,” noted Chabran, adding that Tikehau would have been just “another fund manager” there.
Recent headlines around banks such as JPMorgan restricting lending to private-credit firms and marking down private-credit portfolios reflect a maturing market, rather than systemic risk, he added.
Instead, Tikehau saw opportunity elsewhere in Europe, where there were fewer alternatives for mid-market companies to find financing – an issue not fully addressed by banks or the capital markets, said the co-founder.
“There is a relative advantage in playing (in) this part of the market in Europe, because structurally, it’s not the same as the US, and that’s where asset managers have a very interesting card to play.”
The firm also highlighted that several high-profile credit issues, including those involving sub-prime auto lender Tricolor and auto parts manufacturer First Brands, were also tied to bank-led syndicated loans and asset-backed securities rather than directly originated private credit.
D’Estienne d’Orves pointed out: “These things put us in a slightly different position than our peers.”
Even so, Tikehau is selectively tapping opportunities in the US private-credit market amid the turmoil, having recently closed a private-credit secondary fund with more than US$1 billion in capital commitments. Secondary funds buy up an LP’s allocations in private-market funds or a specific general partner’s assets.
Chabran noted: “Even if private credit becomes a bit more out of favour in general, credit will remain credit – it’s not going away.”
Building local presence
Even as it raises capital from Asia for European strategies, Tikehau is also stepping up its deployment in the region.
The firm has formed a joint venture with Amova Asset Management to set up a private-debt fund to tap opportunities in Asia that global managers have largely overlooked.
The kind of targets that Tikehau’s private-debt fund in Asia is looking for will be similar to those for its private-debt funds in Europe, said d’Estienne d’Orves. They would be profitable businesses in South-east Asia, Japan and South Korea that are looking to grow, and making between US$20 million and US$50 million in earnings before interest, taxes, depreciation and amortisation (Ebitda).
“That’s a segment where no one is playing – the banks won’t do it and the big funds won’t do it because it’s too granular for them,” he explained.
The firm’s strategy in Asia also hinges on building local presence, mirroring its approach in Europe.
Said Chabran: “Europe is a local market, like Asia; you need boots on the ground in every single jurisdiction in order to be close to the partners, clients, borrowers, to understand the local dynamics, to understand the culture, the language, all these things.”
D’Estienne d’Orves added that navigating the fragmented region will present challenges, but increased regional cooperation could play a key role in developing the infrastructure needed to support ongoing economic growth across Asia.
Growth for green
Beyond private credit, Tikehau’s decarbonisation and energy-transition funds are gaining more attention after the conflict in Iran. Chabran said that the war has been a brutal wake-up call to economies to strengthen resilience and manage their energy sovereignty.
The move to go green had picked up pace initially with interest rising in nuclear power and electric vehicles, before Trump’s policies put the brakes on it, he noted. But when countries are struggling to have enough petrol for cars, the focus could swing back to sustainable solutions.
“These will require a lot of capex investments, and private markets are best positioned to finance that,” Chabran added.
D’Estienne d’Orves said that investors in Asia could put more money into renewable energy production and related infrastructure, after seeing countries in the region grapple with energy-security challenges amid the conflict in the Middle East.
Tikehau has plans to launch an energy-transition fund in Asia.
The targets for the firm’s decarbonisation and energy-transition funds are similar to those for its other funds: usually existing businesses, with proven financial returns, that need capital to scale.
The companies that it invested in as part of this strategy had on average US$25 million in Ebitda. When they exited, their Ebitda was about US$100 million, driven by operational improvements rather than leverage, highlighted Chabran.
Looking ahead, the French firm aims to deepen its presence in Asia while continuing to distribute its European strategies to regional investors. To achieve that, it will double its investment team by 2027 from four currently. Overall, the firm has 30 employees, divided between Singapore and Hong Kong.
“Our footprint in Asia is highly encouraging for the next chapter,” added Chabran.
SOURCE: THE BUSINESS TIMES
