climate

Tikehau launches second PE decarbonisation fund

Tikehau is raising eight other impact and climate funds simultaneously across private equity, private debt, agriculture, real estate and capital markets strategies.

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Launching two climate funds in a month is quick work, so hats off to Tikehau Capital: the firm is launching a private equity decarbonisation fund, co-founder Mathieu Chabran announced on the firm’s year-end results call last week. The news comes two weeks after Tikehau announced a private debt climate fund seeking individual investors’ capital.

TDF II, the new private equity fund, is the successor to Tikehau’s €1.1 billion T2 Energy Transition Fund. It will invest in Europe and North America; by contrast, T2 ETF was focused on Europe only. T2 ETF is nearly fully invested and has exited three portfolio companies, co-founder Antoine Flamarion said.

The firm’s deployment rate is just as quick: it has invested over €3 billion in climate-related assets since the firm set itself a target of reaching €5 billion in managed assets dedicated to climate by 2025, Chabran said on the earnings call.

The mid-market Paris-headquartered firm is notable for raising multiple impact and climate funds across different strategies simultaneously. Impact funds Tikehau is marketing, according to PEI Group’s database and Tikehau documents seen by New Private Markets, include:

  • Tikehau Decarbonisation Fund II (as above): a follow-up to the €1.1 billion Europe-focused T2 Energy Transition Fund.
  • SG Tikehau Dette Privee: a decarbonisation debt fund launched in partnership with Societe Generale and seeking individual investor commitments.
  • Growth Impact III
  • Private Equity Reg-Ag Fund: A regenerative agriculture strategy in partnership with AXA Investment Management and Unilever. Launched in May 2022, the fund has a €1 billion target, towards which Tikehau, AXA Climate and Unilever each committed €100 million.
  • Impact Lending Fund: A €350 million-target fund that issues sustainability-linked corporate loans. €201 million has been raised, of which €100 million came from Pensioenfonds Detailhandel.
  • Real estate decarbonisation fund: A “value-add” strategy that involves acquiring and renovating buildings to reduce their operational carbon footprint.
  • Green Assets fund: An infrastructure debt strategy that has raised €100 million
  • Impact Credit fund: A capital markets strategy launched in July 2021. €30 million has been raised.

In related news, the Euronext-listed firm has received a €400 million equity investment from Société Familiale d’Investissements, a subsidiary of family office Patrinvest, in exchange for a 16 percent stake in the firm’s holding company, Tikehau announced last week.