Tikehau invests $600m in climate deals over six months

Tikehau is set to close its debut impact lending fund and is marketing regenerative agriculture, real estate decarbonisation and North America-focused decarbonisation funds – having set a climate AUM target of €5bn by 2025.

Tikehau Capital has deployed $600 million into climate-focused investments in the past six months, deputy chief executive Henri Marcoux announced on Tikehau’s H1 results call last week.

Tikehau has set itself a target of reaching €5 billion in managed assets dedicated to climate by 2025 across a range of asset classes, including private equity, private credit, infrastructure, real estate and capital markets. It had deployed €1.5 billion of this by the end of 2021 and €2.1 billion by the end of June 2022, Marcoux said.

The firm announced a regenerative agriculture fund earlier this year with a €1 billion target, with seed investors Axa, Unilever and Tikehau committing €100 million each. And earlier this year, the firm announced a €100 million first close on its Green Assets fund, which invests in climate-friendly infrastructure technology such as electric vehicles and EV charging.

Tikehau will soon hit the road with the second vintage of its Europe-focused energy transition fund, a source close to the firm told New Private Markets earlier this year. The Paris-headquartered firm’s first vehicle in this space, T2 Energy Transition Fund, launched in 2018 and raised €1.1 billion. The fund deploys growth capital along three themes: clean energy generation, low-carbon mobility and energy efficiency. Last year, the firm launched a North American version of T2ETF, which had raised $300 million by February 2022.

Meanwhile, it is set to launch a real estate decarbonisation fund this year, which will be a successor to the firm’s €560 million, 2018-vintage first real estate fund. “Tikehau Real Estate Opportunity Fund 2 – TREO2 – is transitioning to an impact strategy, so we have the capacity to convert existing strategy to an impact-dedicated strategy, on top of our flagship impact fund,” Marcoux explained on the results call. All funds in the climate strategy are compliant with Article 9 of the SFDR, Marcoux said.

On the private debt side, Tikehau is preparing to close its impact lending fund, which launched in 2020 with a €400 million target, Marcoux said. And 65 percent of debt financing that Tikehau has received is linked to ESG KPIs, Marcoux said. “Sustainability is at the heart of our DNA.”