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In brief: Tikehau plots real estate decarbonisation fund

The Paris-listed firm is planning to launch several additional climate-focused funds across different strategies to meet its €5bn climate fundraising target by 2025.

Tikehau Capital will venture into new asset classes to meet its €5 billion climate fundraising target by 2025, New Private Markets has learned.

The Paris-listed firm will launch a real estate fund later this year that buys and renovates buildings to reduce their operational carbon footprint, a source with knowledge of the situation told New Private Markets. The fund will be classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation. Tikehau declined to comment.

Other planned strategies include:

  • Energy transition: a follow-up to the €1.1 billion Europe-focused T2 Energy Transition Fund.
  • Regenerative agriculture: acquiring agricultural assets to make agriculture more sustainable with “training around agricultural habits, fertilizers, new technology and feeding solutions. It’s about changing agricultural habits,” said the source.

Tikehau is already in the market with:

  • Green Assets Fund: Tikehau announced a first close at €100 million earlier this week. This Article 9 fund will invest in electric vehicle technology and EV charging technology, among other sectors, the source told New Private Markets.
  • T2 North America Decarbonisation Fund: a private equity strategy that has raised at least $300 million.
  • Impact Lending Fund: a €350 million-target private debt strategy issuing sustainability-linked loans. Tikehau announced a €100 million commitment from Pensioenfonds Detailhandel earlier this week.
  • Impact Credit Fund: a capital markets strategy.

In October 2021, Tikehau announced a target to raise €5 billion by 2025 for climate impact through private equity, private debt and capital markets strategies – of which it had already raised about €1.5 billion. On Tikehau’s multi-strategy approach, the firm’s deputy chief executive Cecile Cabanis told New Private Markets: “We make sure that we are moving solutions at all levels of the capital structure using all the platforms. That’s our differentiating factor.”