Tikehau to raise €3.5bn for cross-asset climate impact

Tikehau is targeting over €5bn of climate-dedicated AUM by 2025 – of which it has raised about €1.5bn – and is linking its carry to impact.

Tikehau Capital is aiming to raise a further approximately €3.5 billion by 2025 for climate impact funds in private equity, private debt and capital markets to reach its €5 billion target. These existing and forthcoming private impact funds will link carried interest to impact performance.

The Paris-headquartered firm has appointed Pierre Abadie as group climate director to lead the strategies under Tikehau’s newly formed Climate Action Centre. Abadie is also co-head of the Europe-focused private equity T2 Energy Transition Fund.

Pierre Abadie, Tikehau

Tikehau has already raised approximately €1.5 billion for decarbonisation and the energy transition through a range of funds, Abadie told New Private Markets: its T2 Energy Transition Fund closed this year at €1.1 billion; it has raised $300 million for its T2 North America Decarbonisation Fund; it has launched Impact Lending Fund, a private debt strategy; and it has launched an Impact Credit Fund, a capital markets strategy. The Impact Lending Fund has a €350 million target, according to affiliate title Private Debt Investor’s database. All of these funds are compliant with Article 9 of the EU’s SFDR, according to the firm’s statement.

Tikehau is linking its carried interest to its impact performance for the T2 Energy Transition Fund, the T2 North America decarbonisation fund and the Impact Lending Fund, said Abadie. The specific KPIs around decarbonisation and climate impact vary by fund, he added. Abadie declined to comment on the portion of carry this applies to or how it is calculated.

Tikehau is considering a global strategy for future climate funds and plans to hire local teams in the regions it invests in. The firm is growing its North America investment team and plans to recruit in Benelux and Germany in particular, said Abadie.