Nikko AM picks up equity stake in Tikehau Capital as firms finalise strategic partnership

As well as the acquisition of an equity stake, the partnership also encompasses a distribution agreement and a joint venture.

Nikko Asset Management is set to pick up an equity stake in global alternative asset manager Tikehau Capital as the firms finalise their strategic partnership in Asia. 

Stefanie Drews

The firms confirmed that this stake will remain below the first applicable statutory disclosure threshold. 

The partnership, which came into effect earlier this week (25 June), also includes a distribution agreement and the establishment of joint venture. The key aims of the agreement are to enhance both firms’ global investment capabilities and presence.

Stefanie Drews, president of Nikko AM, asserted that the move comes as the firm seeks to enhance its European reach: “Investors in Asia are increasingly looking for private assets, and partnering with an innovative firm like Tikehau Capital with its distinct advantages in uncovering such investment opportunities in Europe is a perfect fit for our own Global Growth strategy.

“It is also a cultural fit, as Tikehau Capital also brings a considerable expertise in investing in decarbonisation, which aligns with our commitment to sustainable investment and stewardship.”

Under the distribution agreement, Nikko AM will gain exclusive distribution rights in Japan principally as well as non-exclusive distribution rights in Asian markets. 

Specifically, this is for Tikehau Capital’s European Direct Lending, Private Equity Decarbonisation and Private Debt Secondaries funds, “as well as any other funds deemed appropriate”. 

The joint venture between the firms, subject to regulatory approval, is for the development of an Asia-focused private asset investment strategies. 

In the first instance, the JV will focus on launching an investment strategy dedicated to decarbonisation in Asia, the firms confirmed, with the initiative set to be located in Singapore. Incorporation and licensing application submissions are slated for the end of this year. 

Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, and Bruno de Pampelonne, chair of Asia, jointly commented that the partnership marks a key milestone for the firm in Asia. 

“With Nikko Asset Management’s extensive distribution network and market intelligence, combined with our robust expertise in private markets, we are well-positioned to enhance our presence and drive growth in this dynamic region. Together, we are poised to create powerful synergies that will contribute to redefine the industry landscape in Asia and deliver exceptional value to our clients.”