Half Year 2024 Tikehau Capital SCA Earnings Call Transcript
Key Points
- Tikehau Capital SCA (TKKHF) achieved a record EUR3.4 billion in net new money during the first half of 2024, demonstrating strong fundraising momentum.
- The company reported double-digit growth in management fee generation, indicating robust underlying financial performance.
- Sustainability-focused assets under management (AUM) grew by 11%, reaching EUR30 billion, reflecting the company's commitment to sustainable investment strategies.
- Tikehau Capital SCA expanded its international presence, with 75% of third-party net new money coming from non-domestic clients, highlighting successful global diversification.
- The firm maintained a high level of selectivity in investments, with a selectivity rate of 99%, ensuring quality asset acquisition and downside protection.
- The company faced cyclical impacts from a high basis of comparison in 2023, affecting upfront subscription fees and unrealized mark-to-market effects on listed REITs.
- Real estate strategies experienced net outflows, with over EUR100 million in unserved exits, indicating challenges in this sector.
- The weighted average management fee rate decreased to 88 bps from 97 bps a year ago, reflecting a shift in fundraising mix towards lower-fee strategies.
- Performance-related earnings remain uncertain, with realizations dependent on market conditions and fund exits, creating potential volatility in future earnings.
- The gearing ratio increased to 54% due to higher financial debt, which could pose risks if not managed carefully in a volatile market environment.
Hello, everyone. Good evening or good morning for those joining us from the US. Thanks for joining our Tikehau H1 '24 earnings call. My name is Henri Marcoux; I'm Deputy CEO of Tikehau Capital. So I will be joined today by Fred Giovansili, Deputy CEO; as well as Vincent Picot, our Group CFO; and Sébastien Cossu, Co-Head of Real Estate acquisition. We're happy to be with you here tonight and to go through Tikehau Capital progress and milestones for the first half of '24.
Let me start maybe by a quick recap for H1 '24 highlights on slide number 5. In net sale, Tikehau Capital keeps delivering on its growth plan, and the first six months of '24 have brought further evidence of that. I will start by fundraising, which has remained strong with a record EUR3.4 billion of net new money generated in the first half. That's actually a strong achievement in the current context. The diversity of our strategies, our strong credit platform, and of course our strong performance has played out very positively in
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