French alternative investment manager Tikehau Capital, which has recently opened a Japan office to boost its Asia operations, has achieved a first close at $100 million for its debut fund-of-funds in Asia, according to a report by Private Equity International (PEI).
The 22 billion euro fund manager planned to raise $150 million and close fundraising for the vehicle by mid 2020, the report said. Tikehau is the largest investor in Fund of Funds I.
The fund has a mandate to invest in Asian private debt and venture capital.
Tikehau opened its new Asia office in Tokyo last week in a bid to gain greater proximity with Japanese limited partners who have a growing appetite for European private markets.
“Japanese investors are looking to diversify outside of the domestic market or the US, and Europe presents a new opportunity for them. We want to bring European investors to Asia and Asian investors to Europe,” Bruno de Pampelonne, head of Asia for the French asset manager, told PEI.
He reportedly added that Tikehau has never committed to a Japanese fund or made a direct investment in the country.
Prior to the Japan presence, it had established presence in Singapore and South Korea. The firm has partnered with Singapore-listed real estate company City Developments Limited (CDL) in IREIT Global, a Europe-focused real estate investment trust.
CDL has acquired a 50 per cent stake in the trust manager, IREIT Global Group (IGG), for S$18.36 million from Tikehau Capital. The French investment firm, which invested in IGG in November 2016, holds the remaining 50 per cent.
In addition, CDL has also bought 12.4 per cent of the trust for S$59.36 million. IREIT Global has been listed in Singapore since 2014. Meanwhile, Tikehau Capital itself has increased the ownership in IREIT Global from 8.4 per cent to 16.4 per cent.
“This strategic partnership with CDL offers Tikehau Capital a stronger economic foothold in Asia,” it said in a statement.
Tikehau Capital invests in various asset classes, including private debt, real estate, private equity and liquid strategies. Last year, the Temasek-backed private equity firm partnered with Sprim Ventures to launch TKS1, an early-stage venture capital fund. The $60-million fund has been fully deployed, and the duo will raise a second fund with anticipated $150 million hard cap, according to PEI.
Meanwhile, Sprim said in late 2018 that they aimed to bring TKS1 to as much as $75 million.
Tikehau Capital is also an investor in Deskera, Singapore-based software company that has raised over $100 million in extended Series A round with participation of Mirae Asset-Naver’s Asia Growth Fund.