Tikehau Capital, Nikko Asset Management in talks over Asia-focused ‘strategic partnership’

The agreement could see Nikko Asset Management take an equity stake in Tikehau, as well as establish a JV focused on Asian private markets investments.

Impact investment firm Tikehau Capital has entered into “advanced discussions” with Asian firm Nikko Asset Management over forming a business and capital alliance, the two firms said.

The strategic partnership would see Tikehau Capital and Nikko Asset Management enter into distribution agreements in Japan and elsewhere in Asia, as well as establish a joint venture dedicated to developing Asian private markets investment strategies.

The partnership may also see Nikko Asset Management acquire an equity stake of an undisclosed size in Tikehau Capital through acquisitions that could increase over time. The firms said these would remain below the first applicable statutory disclosure threshold of 5 percent of the share capital or voting rights of Tikehau.

In a statement, Tikehau Capital co-founders Antoine Flamarion and Mathieu Chabran said: “This strategic partnership would be a game-changer for Tikehau Capital in Asia. It would not only expand our global footprint but would also align perfectly with our vision of delivering exceptional value and innovation to our clients. The combined strengths of Tikehau Capital and Nikko Asset Management would undoubtedly create synergies that bring added value to the industry landscape in Asia.”

Nikko Asset Management president Stefanie Drews said: “We have been looking for a strong partner in the private asset space that fits into our strategic global growth plan. Asia is a critically important market for this asset class, and we are delighted that we are now progressing to this stage with a firm of the calibre of Tikehau Capital, with its long history of excellence and innovation.”

Tikehau Capital had around €42 billion of assets under management as at September 30, 2023. In 2022, it signed a memorandum of understanding with AXA and Unilever to explore launching a €1 billion impact fund that would focus on investments in regenerative agriculture. It has also raised capital for multiple private equity decarbonization funds.

Nikko Asset Management had $219.2 billion of AUM at June 30, 2023, and is known for running active fund management strategies in the public equities, fixed income, multi-asset and alternatives spaces. The firm was founded in 1959 and is headquartered in Tokyo.