Tikehau Capital Completes First Closing of Its Impact Lending Fund to c. €100 Million With EU Support

Regulatory News:

Tikehau Capital (Paris:TKO), the alternative asset management and investment group has completed the first closing for its investment platform focused on impact lending, raising c. €100 million from the European Investment Fund, backed by the Investment Plan for Europe, an anchor investor alongside other key institutional investors.

Tikehau Capital intends to contribute to a sustainable European economy while providing investors with competitive returns by investing primarily in European SMEs which contribute to the sustainable economic transition in Europe through their offering, their resource management, or their processes.

The EIF-participation in the fund is made possible thanks to the support of the Investment Plan for Europe of the European Commission and is expected to facilitate the fundraising from other institutional investors, helping the fund to reach a target size of €350 million to €400 million.

In the midst of a pandemic radically transforming our economies and societies, this successful fundraising highlights the relevance of Tikehau Capital’s impact lending strategy, which provides more favourable financing conditions such as lower interest rates to companies that meet their sustainability goals. The fund aims at contributing to the achievement of Sustainable Development Goals (SDGs) relating to climate action, innovative growth, and social inclusion, which are priorities to move forward in the sustainable economic transition in Europe. The economic crisis caused by Covid-19 has made the need to urgently address these issues even more crucial.

Through an investment in Tikehau’s impact lending fund, EIF aims at supporting Tikehau Capital’s first impact fund in the private debt space, helping companies to move towards more sustainable operations and encouraging them to positively contribute to at least two out of five targeted SDGs as defined by the United Nations on an individual and tailor-made basis.

EIF seeks to support Tikehau Capital to foster more private capital towards the lower end of the market and create a catalytic effect in attracting new investors looking for investment opportunities for their SDGs allocations.

EIF Chief Executive Alain Godard declared: “Through its Diversified debt funds division, EIF seeks to support alternative managers to foster more private capital towards the lower end of the market, with bespoke financing solutions. Our cooperation with Tikehau Capital with the support of EFSI demonstrates Europe’s strong commitment to Social Development, in the broader context of the EU's green transition.”