Tikehau Capital (TKO) H2 2024 earnings summary

Executive summary

• Achieved record fundraising in 2024 with €9.3bn gross and €7.0bn net inflows, marking the third consecutive record year and a 41% year-over-year increase in net new money.

• Asset Management AuM reached €49bn at year-end, growing at a 24% CAGR since 2016, with international investors contributing 66% of net inflows.

• Core Fee-Related Earnings (FRE) rose to €132m, with a margin of 39.2% and strong acceleration in H2 2024.

• Dividend increased to €0.80 per share, up 7% from 2023, with a payout ratio above 80% of AM EBIT.

• Strong profit generation, with net result before tax up 9% to €210m and free cash flow improving to €124m.

Financial highlights

• Fee-paying AuM grew 14% year-over-year to €39.8bn, driven by inflows in Private Equity and Capital Markets Strategies.

• Management fees and other revenues increased 8% to €337m, with H2 2024 showing 16% sequential growth; net management fees grew 17% excluding one-time effects.

• Core FRE margin stable at 39.2%, improving to 42% in H2 2024.

• Asset Management EBIT rose to €126m, with net result, Group share at €156m, reflecting higher financial and tax expenses.

• Shareholders’ equity increased to €3.25bn; financial debt at €1.6bn and gearing ratio at 51%.

Outlook and guidance

• Focus for 2025 on fundraising for flagship strategies, scaling innovations, international expansion, and driving operating leverage.

• Plans to unlock co-investment potential, optimize balance sheet, and prioritize active rotation and carry generation.

• 2025 priorities include new vintages in Direct Lending, Decarbonization, and Aerospace strategies.

• Targets for 2026: €65bn AuM, €250m Fee-Related Earnings, and €500m net income, subject to market conditions.