Tikehau Capital (TKO) H1 2024 earnings summary

Executive summary

• Achieved record net inflows of EUR 3.4 billion in H1 2024, with 75% from international clients, driving AuM to EUR 45.6 billion, up 13% year-over-year.

• Strong fundraising momentum across strategies, especially in Private Debt, CLOs, and Capital Markets, with private clients representing 30% of AuM and EUR 1.2 billion H1 inflows.

• Continued global expansion, including strategic partnership and JV with Nikko Asset Management, new offices in Montreal and Hong Kong, and alliances with Flow Capital and UOB Kay Hian.

• Sustainability remains central, with EUR 30 billion in SFDR Article 8 and 9 funds, EUR 3.3 billion in climate/biodiversity AUM (up 35% year-over-year), and a 10% increase in sustainability-themed strategies.

• Disciplined capital deployment of EUR 2.8 billion in H1 2024, with EUR 6.7 billion dry powder at period end.

Financial highlights

• Fee-paying AuM reached EUR 37.2 billion, up 12% year-over-year, supporting long-term management fee growth.

• Management fees and other revenues were EUR 155.9 million, stable year-over-year; underlying growth offset by lower upfront fees.

• Core Fee-Related Earnings (FRE) were EUR 55.7 million (margin 35.7%), with net result group share at EUR 57.5 million for H1 2024.

• Asset Management EBIT was EUR 51.4 million, and realized portfolio revenues grew 16% year-over-year.

• Investment portfolio at EUR 4 billion, with 77% invested in in-house strategies.

Outlook and guidance

• Acceleration in fundraising and revenue generation expected in H2 2024, with robust pipelines in flagship funds, CLOs, and Capital Markets Strategies.

• Mid-term targets confirmed: >EUR 65 billion AuM, >EUR 250 million FRE, and ~EUR 500 million net profit by 2026.

• Management fee generation and core FRE expected to be skewed toward H2, with cost discipline maintained.