Tikehau Capital raises more than EUR1 billion for private equity energy transition strategy
Tikehau Capital has completed fundraising for its T2 investment strategy focused on energy transition with over EUR1 billion in commitments.
Tikehau Capital launched this strategy in 2018 with EUR100 million from its own balance sheet. This unique alignment of interest with LPs has proven successful, attracting large strategic investors from several geographies (whose commitments represent 45 per cent of the funds raised overall).
Tikehau Capital’s T2 Energy Transition Fund is one of the leading and largest global growth private equity vehicles singularly committed to fighting climate change.
The T2 Energy Transition Fund, set up to help reach the goals of the 2015 Paris Agreement, provides growth equity to European SMEs that directly help lower GHG emissions. The T2 fund’s mission is to fight global warming by funding the growth of emerging corporate leaders in the energy transition space and investing in European SMEs that provide tools to response to the climate emergency.
Over the last 18 months, Tikehau Capital has invested EUR440 million in six European SMEs focused on clean energy generation, low-carbon mobility and energy efficiency.
Pierre Abadie and Mathieu Badjeck, co-managers of Tikehau Capital’s T2 Energy Transition Fund, say: "In 2019 alone, Tikehau Capital’s energy transition portfolio companies have provided goods and services that, over their lifetime, will avoid one million tons of CO2 from being emitted. And this is the just the beginning.”
Mathieu Chabran, co-founder of Tikehau Capital, says: “The purpose of our energy transition-focused platform is to make equity investments in profitable companies in this sector. We give these companies a major boost so that they can immediately reduce greenhouse gas emissions. In line with our commitment in terms of ESG and particularly with our intention to address the climate emergency, we decided to launch the first private equity fund on this scale to focus entirely on energy transition. Tikehau Capital committed EUR100 million of its own balance sheet to the fund. This close alignment of interest with our investors, whom I thank for the trust they have placed in us, has enabled us to attract a wide range of people wanting to invest in a strategy aimed at decarbonising our economy. This has made our initiative a real success. And this is just the start. We can meet the targets set by the Paris agreements in 2015 provided that we invest today in these companies that are transforming our economic system by moving us towards a decarbonised future.”
Emmanuel Laillier, Head of Private Equity at Tikehau Capital, adds: “Investors’ enthusiasm for this fund shows the appeal of our energy transition-focused private equity platform. We launched the platform in 2018 with the ambitious objective of raising between 750 million euros and 1 billion euros, which we have now far exceeded. Our success also highlights the need to strengthen companies’ equity bases to move faster with energy transition. This is an outstanding performance for a first generation of funds dedicated to energy transition. I would like to congratulate the Tikehau Capital team for this achievement. Together, we want to support the growth of European SMEs in a sector that is playing a crucial role in addressing the climate emergency.”
Tikehau Capital’s T2 Energy Transition Fund has already acquired stakes in: Greenyellow, a provider of energy efficient refrigeration solutions to retail outlets; Groupe Rougnon, a specialist in energy-efficient refurbishment of buildings; Crowley Carbon, a service provider that helps factories become more energy efficient; Amarenco a leading developer in distributed solar projects; Enso, a biomass boiler specialist; and EuroGroup, a supplier of engine parts for EVs.