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Tikehau Capital to acquire ACE Management

Tikehau Capital, an alternative investment and asset management group, has acquired asset management company ACE Management. In addition, Marwan Lahoud has been appointed to strengthen Tikehau’s private equity business.

Tikehau Capital continues its policy for growth with the 100 per cent acquisition of ACE Management. The acquisition of a specialist in the aerospace, defence and cybersecurity sector, further supports Tikehau Capital’s momentum of strengthening its private equity expertise. ACE Management will provide Tikehau Capital with a new range of specialist funds, complementing Tikehau’s generalist funds focusing on growth equity, alongside the specialist energy sector and special situations funds already managed by the group.

Lahoud, who has held several leading roles in the aeronautic sector, is joining Tikehau Capital and will take over as chairman of ACE Management’s supervisory board. His international experience and his sector expertise will be key assets to support Tikehau Capital’s and ACE Management’s ambitions.

ACE Management is an asset investment management company which has specialised in capital investment in the innovation and industrial sectors over the past 20 years. ACE Management’s investors are primarily major international groups, operating across the aerospace and defence industries. The company manages three main categories of funds on behalf of its clients, representing close to EUR440 million of assets under management: Aerofund (aerospace), Brienne (defence and security) and Atalaya (maritime).

Following the ACE Management’s acquisition, Tikehau Capital will participate to the launch of a new generation of funds managed by ACE Management, including cybersecurity focused fund Brienne III, maritime specialist fund Atalaya II and Elara, a fund investing in cutting-edge production units.

Tikehau Capital co-founder Antoine Flamarion says: “With this acquisition, we are pursuing the implementation of our strategy, by accelerating our development in the private equity industry, and establishing our expertise in a buoyant sector. ACE Management’s sector-based approach is highly complementary to Tikehau Capital’s business know-how.”

Lahoud adds: “I am drawn by Tikehau Capital’s company spirit, the ambition and creativity of its teams, and I am honoured to be able to contribute to the group’s development, particularly the private equity business. ACE Management is a leading manager in its sector and will be able to launch a new expansion phase thanks to the support from Tikehau Capital.”

ACE Management Chairman of the management Board Thierry Letailleur says: “We are delighted by the deal with Tikehau Capital which will strengthen our position in the private equity market and enable us to attract new investors into our entrepreneurial adventure which began 20 years ago. Transactions so far this year have once again demonstrated the relevance and robustness of ACE Management’s sector-based funds model, which continues to remain focused on both the industry sector and innovation.”

ACE Management has been particularly active over the past six months, supporting the aerospace surface-treatment chemical products group Socomore in its external growth strategy. The company was also involved in the capital restructuring of the aeronautic equipment supplier Rafaut and the capital restructuring of aeronautic equipment supply company Duqueine.

The price paid for the acquisition of ACE Management will be based on an enterprise value of €6.5m. Up to 30 per cent of the consideration for the acquisition will be paid in the form of newly-issued Tikehau Capital shares in connection with a contribution in kind, with the balance to be paid in cash. The contribution in kind will lead to the issuance of up to 104,231 new Tikehau Capital shares.
The deal is expected to close before the end of 2018 and is subject to approval from the French Autorité des marchés financiers (as a result of the change of ownership of the management company) and the relevant competition authorities.

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