Investors looking for fixed income alternatives have been increasingly bullish on the non-bank lending market.
Tikehau Capital has seen its assets under management (AUM) swell to €12.6bn after a strong third quarter, mainly driven by new cash flowing into its private debt business.
The firm saw in the three months to 30 September 2017 a 13 per cent net increase compared to 30 June 2017 and a 26 per cent increase since 31 December 2016. This included a growth of €1.5bn in AUM since 30 June 2017, mainly driven by inflows of €0.6bn in its private debt business.
In the private debt business, the increase in AUM was mainly driven by (i) Tikehau Direct Lending IV, the new vintage of direct lending fund, with the completion of an initial closing during the third quarter and (ii) the finalization of a third CLO (Collateralized Loan Obligations) for a final amount of €435m. This fund, launched on 19 September 2017, enables Tikehau Capital to exceed €1bn AUM in its CLO business.
Alternative asset classes – in particular, real assets, private equity and private debt – are set to more than double in size, reaching $21.1trn by 2025, accounting for 15 per cent of global AuM according to recent research by PwC. This is due to investors looking to diversify to reduce volatility and target specific return and risk outcomes,
Tikehau Capital employs 175 staff in its Paris, London, Brussels, Madrid, Milan, Seoul and Singapore offices.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.