Tikehau Capital (TKO) H1 2024 earnings summary

Executive summary

• Achieved record net inflows of €3.4bn in H1 2024, with 75% from international investors, driving AuM to €45.6bn–€46.1bn, up 12–13% year-over-year, and strong fundraising momentum across strategies and geographies.

• Fee-paying AuM reached €37.2bn, up 12% year-over-year, with private clients representing 30% of AuM and €1.2bn H1 inflows.

• Sustainability remains central, with €30bn in SFDR Article 8 and 9 funds and €3.3bn in climate/biodiversity AUM, up 35% year-over-year.

• Continued global expansion, including new offices in Montreal and Hong Kong, and a strategic partnership with Nikko Asset Management in Asia.

• Disciplined capital deployment of €2.8bn in H1 2024, with €6.7bn dry powder at period end.

Financial highlights

• Management fees and other revenues were €155.9m–€161m, stable year-over-year; Core Fee-Related Earnings (FRE) were €55.7m with a margin of 35.7–36%.

• Net income (Group share) for H1 2024 was €57.5m–€58m, down from €72.0m in H1 2023, reflecting cyclical impacts and higher financial expenses.

• Asset Management EBIT was €51.4m, compared to €53.1m in H1 2023.

• Realized portfolio revenues grew 16% year-over-year, driven by Tikehau Capital strategies.

• Gross debt increased to €1.7bn, with gearing ratio at 54%.

Outlook and guidance

• Acceleration in fundraising and revenue generation expected in H2 2024, with robust pipelines in capital markets, CLOs, and flagship funds.

• Mid-term targets confirmed: over €65bn AuM, more than €250m Fee-Related Earnings, and around €500m net income (Group share) by 2026.

• Management fee generation and core FRE expected to be skewed toward H2, with cost discipline maintained.