Tikehau Capital announced 2026-2029 strategic targets projecting assets under management above €60 billion with core fee-related earnings margins reaching 45-50%, up from 41% in 2025. The Paris-based firm expects cumulative net inflows exceeding €34 billion over the period, 22% higher than the €28 billion raised between 2022-2025.
The firm set 2026 milestone targets of €175-225 million in fee-related earnings, representing 37-76% growth versus 2025 and approximately 20-50% above market expectations. Value-add strategies now account for 25% of Tikehau's AUM compared to less than 1% at the time of its IPO, reflecting a sector-wide pivot from generic buyouts.
International investors comprise 46% of Tikehau's AUM versus 20% in 2016, underscoring the global capital shift toward European private equity. Improving European market conditions and supportive policy frameworks are driving renewed institutional interest in the region after years of US market dominance.
Established North American players are simultaneously executing portfolio transformations. Onex completed major strategic moves including the Convex acquisition and AIG partnership. CEO Bobby Le Blanc stated the firm has "significant momentum heading into the new year" and called the Convex deal "a pivotal moment in Onex' evolution that meaningfully enhances our growth prospects."
Portfolio rationalization accelerated across the sector. Etsy sold its Depop subsidiary to Apax Partners while Keurig Dr Pepper explored acquisition options for JDE Peet's coffee business. Apollo Global Management launched a $1.5 billion Multi-Asset Continuation Vehicle to provide liquidity for existing investors while retaining promising assets.
The strategic consolidation reflects private equity's adaptation to changing market conditions. Firms are emphasizing operational improvements and margin expansion over leverage-driven returns. Entry valuations remain attractive compared to 2021 peaks, creating opportunities for disciplined capital deployment.
European policy initiatives supporting capital markets union and pension fund reforms are expected to channel additional institutional capital toward private equity strategies. The combination of regulatory tailwinds, portfolio optimization, and international diversification positions major firms for sustained growth despite elevated interest rates.