Tikehau holds first close on debut Asian FoF – exclusive

The firm is opening a new Tokyo office to help diversify its LP base and accelerate its investment pace in Asia.

Tikehau Capital has held a first close on its first Asian private equity fund of funds as it pushes further into the region, Private Equity International has learned.

The Paris-headquartered asset manager collected $100 million for Tikehau Fund of Funds I and could raise up to $150 million, head of Asia Bruno de Pampelonne told PEI. Tikehau is the largest investor in the fund, which is expected to hold a final close by mid-2020.

Fund I will also be mandated to invest in Asian private debt and venture capital funds.

Tikehau, which has offices in Singapore and South Korea, is opening a Tokyo office to help diversify its LP base, speed up its investment pace in the region and source investment partnerships or joint ventures with Asian players. Sergei Diakov, who used to promote alternative investments to Japanese pension funds at Rogers Investment Advisors, will lead the bureau, according to a statement on Thursday.

“Japan is one of our key priorities in the region,” de Pampelonne said, noting that Tikehau has never previously committed to a Japanese fund or invested directly in the country.

“Japanese investors are looking to diversify outside of the domestic market or the US, and Europe presents a new opportunity for them. We want to bring European investors to Asia and Asian investors to Europe.”

Tikehau has fully deployed TKS1, a $60 million 2018-vintage venture capital fund, de Pampelonne added. The firm will target between $100 million and $150 million for Fund II, for which it will begin marketing next month.

Tikehau had €2.8 billion of private equity assets under management as of 31 December, comprising €1.2 billion of third-party capital and €1.6 billion from its balance sheet, according to its 2018 annual results. It had €22 billion of AUM across all asset classes, with private debt the largest at €8.3 billion.

Japan is an obvious target for managers looking to expand their Asian investor base. The $700 billion Japan Post Insurance, which established its alternatives unit in 2017, plans to deploy as much as 1.5 percent of its total assets under management – about $10 billion – in private equity, real estate, infrastructure and hedge funds by 2020.

Japan’s Ministry of Health, Labour and Welfare gave approval in July for the Government Pension Investment Fund, the largest pension in the world with $1.5 trillion in assets, to invest in alternative assets via limited partnership structures.