Tikehau Capital has reported a sharp increase in net income for the first half of 2017; up to EUR85.9 million, compared with a loss of EUR5.8 million in the first half of 2016 on a pro-forma basis.
This result reflects the increase in the income from asset management activities which amounted to EUR25.1 million, up 39 per cent compared with the first half of 2016 (EUR18.1 million on a pro-forma basis) and the sound performance of the investment activities, where income amounted to EUR121.6 million (compared with EUR35.6 million for the first half of 2016 on a pro-forma basis).
The significant increase in income from asset management activities (39 per cent) reflects both the increase in the Group’s assets under management and the increase in assets under management that generate management fees. Some funds only generate management fees once the amounts committed by investor clients have been invested. Accordingly, the Group’s management fees gradually increase as the amounts committed by its investor clients are progressively invested. This increase in income from asset management activities occurred against a backdrop of tightly controlled costs: net income from asset management activities amounted to EUR2.9 million compared with a loss of EUR0.8 million in the first half of 2016 (on a pro-forma basis).
Income from investment activities amounted to EUR99 million in the first half, which marked a sharp increase compared with the first half of 2016 (EUR10.5 million on a pro forma basis) due to revenues from assets amounting to EUR23 million and positive changes in fair value amounting to EUR98.6 million. These changes mainly correspond to a EUR57.1 million revaluation of the listed securities held in the portfolio (including Assystem, Eurazeo and SES-imagotag. This portfolio is currently the subject of exclusive negotiations with a view to divestment), as well as to the revaluation of the shares in Salvepar, upon its inclusion in Tikehau Capital’s consolidation scope, for an amount of EUR32.4 million (revaluation of the percentage of Salvepar’s IFRS equity capital compared with a stock market valuation in the financial statements for the year ended 31 December 2016).
The Group reported a gross cash position of EUR120.2 million on a consolidated basis as at 30 June 2017 compared with EUR129.8 million as at 31 December 2016.
The first half of the 2017 financial year was also characterised by the completion of the reorganisation operations launched by Tikehau Capital during the 2016 financial year, and which resulted in the listing of the Company on the stock market on 7 March 2017. Tikehau Capital carried out three capital increases for a total amount of EUR351 million during the first half; two of those increases were undertaken on a cash basis for a total amount of EUR200 million, while one increase for EUR151 million formed part of the settlement of the tender offer for Salvepar.
Tikehau Capital’s assets under management amounted to EUR11.1 billion as at 30 June 2017, ie, an increase of 11.3 per cent over the first half. This EUR1.1 billion increase in assets under management results from a net inflow of EUR1.3 billion compared with market and distribution effects of -EUR0.2 billion.
Assets under management as at 30 June 2017 do not take into account the fund-raising rounds that were launched during the first half and were completed after the half-year close on 30 June, or are expected to be finalised between now and the end of the 2017 financial year.


Tikehau Capital reached several symbolic milestones as part of its asset management activities during the first half of 2017, reflecting the Group’s sound commercial momentum, which was bolstered by its recent listing on the stock market.
Tikehau Capital continued the active turnover of its portfolio of investments held on the balance sheet in the first half of 2017. Total investments came to EUR555.7 million, while disposals amounted to EUR98.2 million.
The Company continued to strengthen its shareholders’ equity in the 2nd half. It performed a capital increase in an amount of around EUR702 million (including the issue premium) on 23 July 2017, following the full exercise of the extension clause decided by the General Partner, which resulted in the issuance of 31,903,367 new shares. This capital increase was carried out at a price of EUR22 per share with preferential subscription rights and subscribed to in full by cash contribution.
The purpose of this capital increase was to finance the Company’s next development stage, as announced at the time of the stock-market listing, and to drive its growth, with a view to achieving EUR20 billion in assets under management in 2020.
This capital increase has also enabled the Company to diversify its shareholder base, and to increase its visibility on the capital markets.
Based on the fund-raising rounds undertaken since the beginning of the 2nd half, and on the transactions that are in the process of being finalised between now and the end of the 2017 financial year, the Group aims to achieve EUR13 billion in assets under management by the end of the financial year, i.e., a 30 per cent increase in assets under management over the financial year as a whole (assuming that the assets under management in the liquid strategies remain stable).
Specifically, where the debt securitisation activities are concerned, Tikehau Capital Europe launched the build-up of the asset portfolio (warehousing stage) of its 3rd CLO (Collateralised Loan Obligation) during the first half. The transaction was launched on 19 September for a final amount of EUR435 million. This 3rd CLO will enable Tikehau Capital to exceed EUR1 billion in assets managed as part of its CLO business activities.
