Nikko Asset Management, one of Asia’s largest asset managers with US$240.1 billion in assets under management^[1], has finalised a strategic partnership in Asia with Tikehau Capital, the global alternative asset management group, effective on 25 June 2024. The partnership encompasses three key components designed to enhance both groups’ global investment capabilities and presence: a distribution agreement, a joint venture, and Nikko Asset Management taking an equity stake in Tikehau Capital. This partnership agreement follows the earlier announcement about the commencement of discussions between the two groups.

1. The distribution agreement goes into effect immediately, giving Nikko Asset Management exclusive distribution rights mainly in Japan, and non-exclusive distribution rights in other selected Asian markets, for Tikehau Capital’s products, including its European Direct Lending, Private Equity Decarbonization and Private Debt Secondaries strategies, as well as any other funds deemed appropriate.
2. The joint venture is to be located in Singapore, with incorporation and submission of a licensing application targeted by the end of the 2024 calendar year. The launch of the joint venture is subject to obtaining regulatory approval. The objective is to jointly develop Asia focused private asset investment strategies, bringing the best capabilities of the two groups together. This joint venture aims to efficiently design and launch products to respond to the growing investor demand for private assets, while tackling strong secular investment themes. At first, the joint venture will focus on launching an investment strategy dedicated to decarbonization in Asia, leveraging Tikehau Capital’s expertise and track record achieved in Europe. The products would be distributed by both groups’ global networks.
3. Nikko Asset Management is in the process of acquiring an equity stake in Tikehau Capital, which is listed on the Euronext Paris stock exchange. This stake, which will remain below the first applicable statutory disclosure threshold, is a significant step in cementing the alliance between both groups.

Nikko Asset Management brings to the partnership an extensive distribution and client service network, an established reputation and a wealth of experience and market intelligence to the partnership, enhancing Tikehau Capital’s presence in Japan and across Asia.

Tikehau Capital, a global alternative asset manager with US$48 billion in assets under management^[2], brings to this partnership a wealth of expertise and a robust track record in the private markets sector, supported by a team of seasoned professionals with extensive experience. Driven by its entrepreneurial spirit, Tikehau Capital aims to be at the forefront of innovation, notably as a pioneer in the European mid-market private debt, sustainability and impact, as well as credit secondaries spaces.

Stefanie Drews, President of Nikko Asset Management Co., Ltd., commented, “We are pleased to enter this groundbreaking partnership with Tikehau Capital. 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 decarbonization, which aligns with our commitment to sustainable investment and stewardship. We look forward to leveraging Tikehau Capital’s expertise and innovation to drive significant growth and opportunities in the Asian market.”

Antoine Flamarion, Mathieu Chabran, Co-founders of Tikehau Capital, and Bruno de Pampelonne, Chairman of Asia, declared, “We are thrilled to officially launch our strategic partnership with Nikko Asset Management. This collaboration marks a significant milestone for Tikehau Capital in Asia, following 10 years of expansion in the region, with the successive openings of our offices in Singapore, South Korea, Japan and the upcoming opening in Hong Kong. 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.”\

Source: Nikko