Tikehau Capital, the privately owned investment firm and investor in private equity firm Duke Street, is to become a listed asset management business through a reverse merger with Salvepar, a listed subsidiary of the firm.
Tikehau, named after an island in French Polynesia, has offered to acquire shares of Salvepar, which is a near-century old listed investment vehicle, in exchange for shares in the newly listed Tikehau Capital, which will trade on Euronext Paris.
Tikehau has been the majority shareholder of Salvepar since 2012.
Mathieu Chabran, co-founder of Tikehau Capital, told PEI that the company will be well positioned to take advantage of increasing demand from institutional investors looking for exposure to non-traditional asset management businesses.
“Investors now more often have a bucket for alternative asset managers. The key for us is to consolidate all the Tikehau businesses into one,” he said.
Among the European peers in that bucket would be the likes of Partners Group, listed in Switzerland, and 3i Group and ICG, both listed in London.
“At a time when investors are wondering what the consequences of Brexit will be for London-based asset managers, we can take advantage of uncertainty, offering a manager with roots on the [European] continent, albeit that we have an expanding London office.”
After the proposed transaction, Tikehau will be a listed investment and asset management company with €1.5 billion of balance sheet equity and €9.6 billion in assets under management.
The majority of Tikehau’s third party assets is accounted for by its private debt fund business.
The firm’s private equity activity will be included in its “strategic equity” strategy, which currently sits as part of the Salvepar business and takes minority stakes in both listed and unlisted companies.
Tikehau has only previously raised third party capital for private equity transactions on a deal-by-deal basis, but following the transaction it could well raise new funds under the strategic equity strategy.