Tikehau and DWS to collaborate on funds and investments

Investing in funds, co-investment and joint products are expected as a result of collaboration between the two firms.

Tikehau Capital and DWS have entered into a strategic partnership which will see them launch a joint product and cross-invest in funds.

Earlier this year, Tikehau invested €250 million in DWS’s initial public offering when the asset management firm spun out from Deutsche Bank.

The two businesses are aiming to work together to identify and develop various business opportunities.

Areas to be explored will include a joint product leveraging the two firms’ experience in alternative assets, due to be launched in 2019. Details of the project are still being firmed up but it will “bring together the specific expertise of Tikehau and DWS”, according to Tikehau Capital co-chief investment officer and chief executive, Thomas Friedburger.

The deal will also include investments in Tikehau funds, with DWS investing in a new special situations strategy from the smaller firm. It will also invest in subordinated financial debt opportunities and is considering further investments in Tikehau vehicles.

Meanwhile, Tikehau will participate in DWS’s sustainable and impact investing activities. Both asset managers stated they see considerable opportunities in the sustainable and impact investing space and will strengthen their links and discussions in this and other areas.

Antoine Flamarion, co-founder of Tikehau Capital, said: “With this strategic alliance, we are creating a framework to deliver significant added-value based on our respective expertise.”

The firms will also examine opportunities to collaborate on potential distribution through their respective channels and will seek out co-investment opportunities for funds managed by either firm.

The deal will also enable Tikehau to further expand its presence in the German market, while DWS will benefit from enhanced reach into France and Southern Europe.

“Germany is not currently an area where we have a recognised brand but is an important market and this is one reason why we want to collaborate,” explained Friedburger. “We see this as a priority for our development and it would be much more challenging to go it alone.”