€319m of net profit in 2021 Strong growth
from top to bottom line
Regulatory News:
Tikehau Capital (Paris:TKO) has been reaping the benefits of
its differentiating business model and delivered strong financial
results in 2021 across its businesses. The Group’s asset management
business delivered robust growth on all fronts from AuM to revenue
while further improving its profitability. Tikehau Capital’s
balance sheet portfolio returns increased sharply during the year
thanks to an active and relevant portfolio rotation as well as the
strong ramp-up from the investments made by the Group in its own
funds.
As a result of these strong performances, Tikehau Capital
will propose the payment of a dividend of €1 per share for 2021,
which includes a €0.60 reference dividend and €0.40 of
special dividend.
Thanks to its strong balance sheet, which has been further
reinforced in 2021, Tikehau Capital is well positioned to navigate
current market conditions. The Group will hold its Capital Markets
Day on 22 March 2022 and will outline on that occasion the key
drivers supporting its next phase of profitable growth.
KEY FIGURES OF THE YEAR
+33%
€95m
+49%
Management fees1 growth
Fee-related earnings (FRE2)
Asset Management EBIT3 growth
€387m
€319m
€1.0
Investment portfolio revenues
Net result, Group share
Dividend per share x2 vs 2020
distribution
€3.0bn
€1.1bn
43%
Shareholders’ equity at
31.12.21
Consolidated cash position at
31.12.21
Gearing ratio4
Antoine Flamarion and Mathieu Chabran, co-founders of
Tikehau Capital, said: "2021 has been a pivotal year for
Tikehau Capital. We have delivered robust growth and solid results
thanks to our unique business model. Our asset management platform
delivered strong performance across businesses in terms of
fundraising, deployment, as well as recurring revenue and profit
generation. Our investment portfolio also delivered strong returns,
thanks to an active and value-creating asset rotation as well as
the strong performance of our own funds in which we are
increasingly investing. Tikehau Capital has built solid foundations
with a future-facing organization as well as a strong and liquid
balance sheet, which allows us to contend with the uncertainties
linked to the current geopolitical situation. We also strongly
believe that Tikehau Capital operates on structurally growing
markets, and that we are in a strong position to further improve
our financial performance in the years to come.”
"Tikehau Capital has built solid foundations
with a future-facing organization as well as a strong and liquid
balance sheet, which allows us to contend with the uncertainties
linked to the current geopolitical situation”
The Tikehau Capital Supervisory Board met on 8
March 2022 to review the consolidated and statutory financial
statements5 at 31 December 2021.
OPERATING REVIEW
In 2021, Tikehau Capital has stepped up on multiple fronts of
its operating model.
- Investment momentum was very dynamic, and funds managed by
Tikehau Capital deployed a total of €5.5bn in the year while
remaining highly selective
- This represents an 83% increase compared to the average
yearly deployment level achieved over the past 3 years.
- Investment teams remained laser-focused on selectivity,
as evidenced by an exclusion rate of 97%, maintained at a
high level although the volume of opportunities analysed in 2021
rose by 29% compared to 2020.
- This strong investment discipline stems from Tikehau Capital’s
multilocal platform, a critical asset to originate relevant
investment opportunities, coupled with the high level of capital
the firm has committed in its own funds, generating significant
skin in the game.
- Performance of Tikehau Capital funds has remained strong in
2021
- Realizations within Tikehau Capital funds reached €1.5bn
in 2021, which compares to €1.4bn in 2020, driven by realizations
on the Group’s private debt and real assets strategies.
- Performance across Tikehau Capital funds remained
strong, which bodes well for future fundraising and enables to
generate growing returns for the Group’s investment portfolio.
- Performance-related revenues were multiplied by 3 in
2021 compared to 2020, reaching €19.2m primarily reflecting the
strong performance generated by Tikehau Capital’s UCITS.
- The revenues from the investments of Tikehau Capital in its
own funds more than doubled to €156m in 2021, representing 40%
of total the Group's total investment portfolio revenues.
- Fundraising accelerated sharply in 2021, validating Tikehau
Capital’s growth strategy
- Net new money for the Group’s asset management activities
amounted to €6.4bn in 2021, representing a 53%
increase compared to the €4.2bn average yearly fundraising achieved
over the past 3 years.
- Net new money breakdown by asset class in 2021 reflects
the mix of strategies that were raising capital during the year. As
such, Private Debt accounted for 50% of 2021 net new money, driven
by the firm’s flagship strategy in direct lending as well as its
newly launched impact lending and secondary private debt
strategies.
- The Group continued to internationalize its client base
with AuM from international clients reaching €12.1bn, a 30.6%
increase yoy, growing faster than asset management AuM.
- In addition, Tikehau Capital further expanded its client base,
adding over €1.3bn of AuM in strategies dedicated to private
investors. In that spirit, in September 2021, Tikehau Capital
launched a Private Wealth Solutions Group within its sales
and marketing team, aiming at enhancing direct access to Group
funds for family offices and high net worth individuals globally.
This is a new step forward in addressing a growing client category,
which is becoming increasingly sophisticated and willing to raise
its exposure to alternative assets. This direct initiative
complements the existing intermediated private clients coverage
through Private Banks, IFAs and unit-linked insurance
contracts.
- The strong client demand across asset classes validates the
relevance of the Tikehau Capital’s model, with high alignment of
interests and constant innovation at its core.
- Investment portfolio amounted to €2.7bn at 31 December 2021,
with continued investment in Tikehau Capital funds as well as
value-creating asset rotation.
- Tikehau Capital’s investment portfolio is primarily composed of
investments in the asset management strategies developed and
managed by the firm for €2.0bn (75% of total portfolio),
generating high alignment of interests with its clients.
- 25% of the portfolio, i.e €0.7bn, is invested in ecosystem and
direct investments, notably direct private equity investments,
co-investments or investments in third party funds, all of which
aim at serving Tikehau Capital’s asset management franchise
globally.
- Portfolio movements during the year are reflective of Tikehau
Capital’s capital allocation policy and serve its growth
strategy:
- €0.7bnof investments were carried out over the
full year, mainly into the Group’s own asset management strategies,
alongside its clients
- €(0.6)bnof exits were realized, reflecting the active
and value-creating rotation of the Group’s investment portfolio,
with in particular the disposal of a number of listed
investments
- €0.2bn of positive fair value changes, reflecting the
value appreciation across portfolio assets, mainly driven by the
performance of Tikehau Capital funds as well as listed
investments.
- Tikehau Capital will continue to use its balance sheet, a
differentiating factor and enabler of growth, to strengthen its
platform by launching new families of products and vehicles, and
also maintain a high level of alignment of interests with its
shareholders and investor-clients.
FINANCIAL
REVIEW
- Asset management revenues grew by a strong 38% in 2021 to
€283m
- Management fees6 reached €264m, a 33% increase thanks
to the combination of:
- 20% growth in AuM, reaching €33.0bn at 31
December 2021. 86% of that amount are fee-paying AuM,
representing €28.4bn (up 22% in 2021). The compelling growth in
fee-paying AuM is driven by record net new money in 2021, coupled
with sustained deployment momentum across strategies.
- +10 bps improvement in the average management fee
rate, reaching 1.02% in 2021, compared to 92 bps in
2020.
- Performance-related revenues amounted to €19m, 3 times
the amount recorded in 2020, primarily driven by the strong
performance of UCITS managed by the Group.
- EBIT for the asset management7 activity posted a significant
49% increase in 2021, reaching €114m for the full year. Asset
management EBIT margin increased to 40.3%, up 3 percentage points
compared to 2020
- Fee-related earnings (FRE) have improved by 35%
in 2021 reaching €95m, with a FRE margin of 36%, up 65bps
over the year. This reflects the strong operating leverage
sustaining Tikehau Capital’s growth model in the alternative asset
management space.
- Performance-related earnings (PRE) of €19m. This amount
is equal to performance-related revenues and thus reflects the 100%
conversion of such revenues into profit.
- Strong portfolio performance compounding value creation
- Group portfolio revenuereached €387m compared to €85m in
2020. The increase was driven by both realized revenue,
reaching €243m, up €109m compared to 2020, as well as unrealized
revenue, amounting to €144m, resulting from value-creation
across Group portfolio.
- Tikehau Capital’s asset management strategies’
contribution to Group portfolio revenue more than doubled
year-over-year and amounted to €156m, representing 40% of
total portfolio revenue. Those revenue streams will continue to
grow as the Group’s balance sheet invests in its own
strategies.
- The contribution of ecosystem and direct investments to
Group portfolio revenue reached €231m, mainly driven by the
disposal of the Group’s investments in several listed assets as
well as positive unrealized changes in fair value.
- Net result group share reached €319m
- Group corporate expenses for 2021 amounted to €44m.
These expenses have been reduced by €55m (i.e 56%) compared to the
€98.5m costs published in 2020, as a consequence of the Group’s
reorganisation, which became effective as of 15 July 2021 and was
retroactive to 1 January 2021.
- Financial interest expense decreased to -€24m (-33% yoy)
in 2021, compared to -€36m in 2020, reflecting the Group’s relevant
debt management policy.
- Net profit Group share for 2021 was €319m, a significant
improvement compared to 2020 reflecting the strong momentum across
the business lines.
- Strong and liquid balance sheet, further reinforced in
2021
- At 31 December 2021, consolidated shareholders’ equity,
Group share came at €3.0bn and consolidated cash position
reached €1.1bn, compared to €845m at end December 2020. The Group
also benefits from an undrawn revolving credit facility, which has
been increased to €725m on 15 July 2021.
- Financial debt at end-December 2021 amounted to €1.3bn,
with a gearing ratio of 43%. Following the successful issuance of a
€500m inaugural sustainable bond in March 2021 and the launch of an
inaugural sustainable US Private Placement in February 2022,
ESG-linked debt will account for 63% of the Group’s total
debt.
- Dividend proposition of €1 per share, twice the amount
distributed in 2020
- A dividend pay-out of €1 per share for 2021 will be
submitted to the General Shareholders’ Meeting due to take place on
18 May 2022, which is twice the €0.50 distributed for 2020.
- The total dividend includes a €0.60 reference dividend,
a 20% increase compared to the 2020 distribution. This
represents 92% of Tikehau Capital’s asset management EBIT, in line
with the Group’s guidance to distribute more than 80% of that
metric to shareholders.
- The €1 per share proposed dividend also includes €0.40 of
special dividend, linked to the strong value creation in 2021
coming from the active rotation of Tikehau Capital’s investment
portfolio.
- The ex-date will be 20 May 2022, and the payment will take
place on 24 May 2022.
- Share buy-back
- Tikehau Capital extended the share buy-back mandate, which was
signed and announced on 19 March 2020 and extended on 15 September
2021 until today, under the same conditions until 21 April 2022
(included), date of the Group’s Q1 2022 AuM release.
- As of 8 March 2022, 3,317,091 shares were repurchased under the
share buy-back mandate. The description of the share buy-back
program (published in paragraph 8.3.4 of the Tikehau Capital
Universal Registration Document filed with the French Financial
Markets Authority on 1 April 2021 under number D. 21-0246) is
available on the company’s website in the Regulated Information
section
(https://www.tikehaucapital.com/en/finance/regulatory-information).
OUTLOOK
- Building on a strong set up and robust performances across its
activities, Tikehau Capital achieved in 2021 over 95% of each of
its 2022 guidance, which had been communicated in 2019:
- Group AuM reached €34.3bn, representing 98% of 2022
target,
- Fee-related earnings reached €95m, representing 95% of
2022 target,
- The investment portfolio was 75% exposed to Tikehau
Capital’s own strategies, achieving one year earlier, the high
range of its 2022 target.
- Tikehau Capital is closely monitoring how the current
geopolitical situation unfolds, and highlights that across
all business units, there are no portfolio companies domiciled in
Ukraine or Russia, and total portfolio companies’ exposure to
revenue generated from those countries has been reviewed in detail
and is very limited. The risk assessment work continues as the
political and now economic crisis evolves.
- The current geopolitical crisis is set to undoubtedly
accelerate some of the megatrends on which the Group has
built a growing exposure over the recent years, with in particular:
- investments in energy transition and
cybersecurity, which are expected to increase sharply,
- an increasing search for supply chain resilience from
corporates, through re-onshoring and
digitalisation,
- anticipated growing needs for special financings and
hybrid capital,
- volatility and liquidity gaps that may trigger opportunities in
private assets secondary as well as liquid credit and
equities.
- Tikehau Capital benefits from a strong balance sheetwith
€3.0bn of shareholders’ equity and €1.1bn of cash at 31 December
2021, allowing the Group to navigate the current context with
confidence. At 31 December 2021, Tikehau Capital had dry
powder of € 6.2bn within the funds it manages, enabling
investment opportunities provided by market dislocations to be
seized upon.
- Tikehau Capital will provide an updated mid-term outlook during
its Capital Markets Day to take place on 22 March 2022 in
London.
CALENDAR
22 March 2022
2022 Capital Markets Day
21 April 2022
Q1 2022 announcement (after market
close)
28 July 2022
2022 first half results (after market
close)
ABOUT TIKEHAU
CAPITAL
Tikehau Capital is a global alternative asset management group
with €34.3 billion of assets under management (at 31 December
2021).
Tikehau Capital has developed a wide range of expertise across
four asset classes (private debt, real assets, private equity and
capital markets strategies) as well as multi-asset and special
opportunities strategies.
Tikehau Capital is a founder led team with a differentiated
business model, a strong balance sheet, proprietary global deal
flow and a track record of backing high quality companies and
executives.
Deeply rooted in the real economy, Tikehau Capital provides
bespoke and innovative alternative financing solutions to companies
it invests in and seeks to create long-term value for its
investors, while generating positive impacts on society. Leveraging
its strong equity base (€3.0 billion of shareholders’ equity at 31
December 2021), the firm invests its own capital alongside its
investor-clients within each of its strategies.
Controlled by its managers alongside leading institutional
partners, Tikehau Capital is guided by a strong entrepreneurial
spirit and DNA, shared by its 683 employees (at 31 December 2021)
across its 12 offices in Europe, Asia and North America.
Tikehau Capital is listed in compartment A of the regulated
Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP).
For more information, please visit: www.tikehaucapital.com
DISCLAIMER:
This document does not constitute an offer of securities for
sale or investment advisory services. It contains general
information only and is not intended to provide general or specific
investment advice. Past performance is not a reliable indicator of
future earnings and profit, and targets are not guaranteed.
Certain statements and forecasted data are
based on current forecasts, prevailing market and economic
conditions, estimates, projections and opinions of Tikehau Capital
and/or its affiliates. Due to various risks and uncertainties.
actual results may differ materially from those reflected or
expected in such forward-looking statements or in any of the case
studies or forecasts. All references to Tikehau Capital’s advisory
activities in the US or with respect to US persons relate to
Tikehau Capital North America.
APPENDIX
Assets under management
AuM at 31-Dec-2021
YoY change
QoQ change
In €m
Amount (€m)
Weight (%)
In %
In €m
In %
In €m
Private debt
11,709
34%
+25%
+2,366
+15%
+1,526
Real assets
11,989
35%
+16%
+1,656
+7%
+735
Capital markets strategies
5,124
15%
+23%
+940
+1%
+34
Private equity
4,139
12%
+19%
+648
+4%
+144
Asset Management
32,961
96%
+21%
+5,610
+8%
+2,440
Direct investment
1,304
4%
+11%
+124
+2%
+28
Total AuM
34,265
100%
+20%
+5,734
+8%
+2,468
Q4 2021 (in €m)
AuM at 30-09-2021
Net new money
Distri- butions
Market effects
Change in scope
AuM at 31-12-2021
Private debt
10,182
+1,767
(249)
+8
-
11,709
Real assets
11,254
+641
(133)
+227
-
11,989
Capital markets strategies
5,090
+20
(1)
+16
-
5,124
Private equity
3,995
+165
(6)
(15)
-
4,139
Total Asset Management
30,521
+2,593
(389)
+236
-
32,961
Amount
YoY change
In €m
In %
In €m
Fee-paying AuM
28,366
+22%
+5,121
Future fee-paying AuM
2,821
(6)%
(191)
Non-fee-paying AuM
1,774
+62%
+679
Asset Management AuM
32,961
+21%
+5,610
Fee-paying assets under
management
31-Dec-2019
31-Dec-2020
31-Dec-2021
In €m
Private debt
6,727
7,269
9,670
Real assets
7,775
8,925
10,188
Capital markets strategies
3,810
4,184
5,124
Private equity
1,637
2,296
3,383
Fee-paying AuM
19,949
23,245
28,366
Weighted average management fee
rate
31-Dec-2019
31-Dec-2020
31-Dec-2021
In bps
Private debt
73
76
84
Real assets
110
96
111
Capital markets strategies
53
60
53
Private equity
>150
>150
>150
Management fees8
92
92
102
Performance-related fees
5
3
7
Total weighted average
fee-rate9
97
95
108
Simplified consolidated
P&L
FY2020
FY2021
In €m
Published
Proforma10
Published
Management fees & other revenues
198.6
198.6
263.6
Operating costs
(128.4)
(128.4)
(168.7)
Fee Related Earnings (FRE)
70.2
70.2
94.9
FRE margin
35.3%
35.3%
36.0%
Realized Performance-related earnings
(PRE)
6.3
6.3
19.2
Asset Management EBIT
76.4
76.4
114.1
AM EBIT margin
37.3%
37.3%
40.3%
Group portfolio revenues11
84.9
84.9
386.9
of which Realized portfolio revenues
133.9
133.9
243.1
of which Unrealized portfolio revenues
(49.0)
(49.0)
143.8
Group corporate expenses
(98.5)
(48.9)
(43.6)
Financial interests
(36.1)
(36.2)
(24.4)
Non-recurring items and others12
(291.5)
(292.6)
(60.8)
Tax
58.6
48.3
(52.5)
Minority interests
(0.5)
(0.5)
(1.1)
Net result, Group share
(206.6)
(168.6)
318.7
Simplified consolidated balance
sheet
31-Dec-2020
31-Dec-2021
In €m
Published
Proforma
Published
Investment portfolio
2,410
2,508
2,685
Cash & cash equivalents
845
845
1,117
Other current and non-current assets
764
672
811
Total assets
4,018
4,025
4,614
Shareholders’ equity, Group share
2,797
2,792
3,041
Minority interests
7
7
7
Financial debt
999
999
1,301
Other current and non-current
liabilities
216
228
265
Total liabilities
4,018
4,025
4,614
Gearing13
36%
36%
43%
Undrawn credit facilities
500
500
725
1 Include management fees, subscription fees, arrangement fees
and other revenues, net of distribution fees 2 Fee-Related
Earnings, defined as management and other fees minus asset
management operating costs. 3 EBIT for the asset management
activity, previously referred to as NOPAM (Net operating profit for
the asset management activity). 4 Gearing = Total financial debt /
Group share shareholders’ equity. 5 The audit procedures have been
carried out, the audit report relating to the certification is in
the process of being issued. 6 Include management fees,
subscription fees, arrangement fees and other revenues, net of
distribution fees. 7 Previously referred to as NOPAM. 8
Corresponding to management fees, subscription fees and arrangement
fees. 9 Implied fee rates are calculated based on average
fee-paying AuM. 10 Financial information pro forma the
reorganisation dated 15 July 2021 and retroactive to 1 January
2021. 11 Group portfolio revenues is broken down between €156m
(€58m in 2020) generated from Tikehau Capital’s asset management
strategies and €231m (€27m in 2020) from ecosystem and other
investments. 12 Include net result from associates, derivatives
portfolio result and non-recurring items, including the residual
part of non-recurring share-based payments of 1 December 2017,
including social security costs, put in place following the IPO. 13
Gearing = Total financial debt / Shareholders’ Equity, Group
share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220309005735/en/
PRESS CONTACTS: Tikehau Capital: Valérie Sueur – +33 1 40 06 39
30 Image 7: Florence Coupry & Juliette Mouraret – +33 1 53 70
74 70 press@tikehaucapital.com
SHAREHOLDER AND INVESTOR CONTACT: Louis Igonet – +33 1 40 06 11
11 Théodora Xu – +33 1 40 06 18 56
shareholders@tikehaucapital.com
Tikehau Capital (EU:TKO)
Historical Stock Chart
From Feb 2024 to Mar 2024
Tikehau Capital (EU:TKO)
Historical Stock Chart
From Mar 2023 to Mar 2024