Tikehau Capital launches Tikehau European Sovereignty Fund, a thematic equity fund dedicated to investing in European sovereignty

1 March 2024

Tikehau Capital, the global alternative asset management group, is pleased to announce the launch of Tikehau European Sovereignty Fund. This is the first thematic equity strategy launched by the Group’s listed equities team through its Capital Markets Strategies business. Since 2004, Tikehau Capital has championed investing in Europe through various thematic strategies, supporting companies in their developmental endeavours.

FINANCING THE EUROPEAN ECONOMY: EMBEDDED IN TIKEHAU CAPITAL’S DNA

Recent global events, including the Covid-19 pandemic, escalating geopolitical tensions, and the repercussions of excessive globalisation, underscore the imperative of strengthening Europe’s resilience and autonomy. This requires reducing external dependence in critical sectors, recalibrating towards localised value chains and steering the ecological transition.

In response to this evolving landscape, Tikehau Capital remains steadfast in its commitment to investing in Europe. Amid this paradigm shift towards sovereignty, the Group’s management and analysis team perceive a fertile ground for long-term economic growth, particularly for select companies across the continent. European sovereignty represents a compelling investment opportunity and Tikehau European Sovereignty Fund is designed to invest in companies that embrace this secular trend.

With a network of nine European offices facilitating the sourcing of local opportunities, Tikehau Capital has earned distinction as a trailblazer in energy transition investment, cybersecurity, private debt acquisition financing, energy efficiency, small infrastructure financing, and real estate transformation and asset management, with a primary focus on energy-efficient buildings.

REINFORCING EUROPEAN SOVEREIGNTY THROUGH A CONVICTION-DRIVEN EQUITY STRATEGY

This new equity strategy enhances the Group’s range of investment vehicles. It aims to invest primarily in listed European companies deemed of high quality by the management team, which not only bolster European sovereignty, but also stand to benefit from regional and local policies fostering sectoral autonomy and economic resilience.

Tikehau Capital’s equity management team aims to construct a diversified portfolio comprising approximately 40-50 European companies deemed to be of high quality and poised to capitalise on the rise of European sovereignty while offering an attractive risk-return profile.

The fund, accredited with Article 8 classification under the SFDR, underscores the Capital Markets Strategies team’s commitment to incorporating extra-financial considerations

Among the themes identified by Tikehau Capital as pivotal in strengthening European sovereignty and defining Tikehau European Sovereignty Fund’s investment mandate are:

  • Industrial autonomy: strengthening local value chains, fostering sustainable industry trajectories through investment in research and innovation, and forging industrial alliances (e.g., in the clean hydrogen sectors).
  • Digital competitiveness: addressing the EU’s imperative to bolster digital prowess, particularly in areas such as semiconductors, cloud computing and artificial intelligence.
  • Healthcare autonomy: seeking to diminish reliance on imported medicines and promote medical innovation to strengthen healthcare autonomy, which is crucial as Europe contends with market share erosion vis-à-vis the United States and China.
  • Defence: Europe’s defence budgets, which currently stand at 1.3% of GPD2 remain relatively modest. However, the evolving geopolitical landscape calls for a sustained increase in military spending by European countries, particularly in Germany and France.
  • Ecological transition: pioneering efforts to achieve carbon neutrality by 2050 and foster environmentally responsible growth requires substantial investments in renewable energy, circular economy infrastructures and other eco-friendly initiatives.

Eligible for the French stock savings plan “PEA” (with over 75% of invested companies domiciled in the European Union or European Economic Area), Tikehau European Sovereignty Fund will also be marketed in several European countries, including France, Spain, Luxembourg, Germany, Italy, Belgium, the Netherlands and Switzerland.

Source: Tikehau
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