Tikehau Capital has completed the first closing of its investment platform focused on impact lending, raising cEUR100 million from the European Investment Fund, backed by the Investment Plan for Europe, an anchor investor alongside other key institutional investors.
Tikehau Capital intends to contribute to a sustainable European economy while providing investors with competitive returns by investing primarily in European SMEs which contribute to the sustainable economic transition in Europe through their offering, their resource management, or their processes.
The EIF-participation in the fund is made possible thanks to the support of the Investment Plan for Europe of the European Commission and is expected to facilitate the fundraising from other institutional investors, helping the fund to reach a target size of EUR350 million to EUR400 million.
In the midst of a pandemic radically transforming our economies and societies, this successful fundraising highlights the relevance of Tikehau Capital’s impact lending strategy, which provides more favourable financing conditions such as lower interest rates to companies that meet their sustainability goals. The fund aims at contributing to the achievement of Sustainable Development Goals (SDGs) relating to climate action, innovative growth, and social inclusion, which are priorities to move forward in the sustainable economic transition in Europe. The economic crisis caused by Covid-19 has made the need to urgently address these issues even more crucial.
Through an investment in Tikehau’s impact lending fund, EIF aims at supporting Tikehau Capital’s first impact fund in the private debt space, helping companies to move towards more sustainable operations and encouraging them to positively contribute to at least two out of five targeted SDGs as defined by the United Nations on an individual and tailor-made basis.
EIF seeks to support Tikehau Capital to foster more private capital towards the lower end of the market and create a catalytic effect in attracting new investors looking for investment opportunities for their SDGs allocations.
EIF Chief Executive Alain Godard says: “Through its Diversified debt funds division, EIF seeks to support alternative managers to foster more private capital towards the lower end of the market, with bespoke financing solutions. Our cooperation with Tikehau Capital with the support of EFSI demonstrates Europe’s strong commitment to Social Development, in the broader context of the EU’s green transition.”
Commissioner for the Economy, Paolo Gentiloni, says: “I am glad that with support from the Investment Plan for Europe, the EIF has invested in the Tikehau’s impact lending fund, which focuses on creating a more inclusive and sustainable economy. The fund will make available new financing for European SMEs and contribute to promoting climate action, innovative growth and social inclusion – important values that are at the heart of our European economy as well.”
Nathalie Bleunven, head of Corporate Lending at Tikehau Capital, says: “We are thrilled to have the European Investment Fund at our side with a significant contribution to the fund. Our priority is to generate a positive social and environmental impact in addition to a financial return. The EIF’s investment will be an important factor in ensuring the success of our impact lending fund. With respect to our strategy to align our interests with those of our investor partners, we have also committed our own balance sheet. I also would like to thank the other institutional investors for their commitment in the fund and for the trust they have placed in us.”