Tikehau and DWS enter strategic alliance agreement

In March this year Tikehau became an anchor investor in DWS, participating in its partial IPO.

Since the listing, Tikehau initiated discussions with DWS on the potential areas of cooperation which are now being announced. The strategic alliance will include cross-investment in reciprocal alternatives products and exploration of co-investment opportunities.

In terms of private equity specifically, DWS and Tikehau intend to strengthen their links and discussions on private equity and non-listed infrastructure opportunities. DWS and Tikehau will mutually bring value and expertise in order to improve deal co-sourcing and generate co-invest opportunities. The two asset managers see particular opportunities in sustainable and impact investing.

More specifically, DWS and Tikehau intend to cross-invest in respective funds: DWS is planning to participate in initiatives relating to Tikehau's subordinated financial debt expertise and invest into a new special situations initiative by Tikehau as well as considering further investments in other Tikehau funds.

Equally, Tikehau intends to capitalise on DWS' sustainable and impact investing expertise. Tikehau's loans expertise will also be introduced to DWS's German client base.

Other initiatives include collaborating on identifying funds for potential distribution through the companies' respective channels and seeking to find and consider co-investment opportunities for funds managed by either DWS or Tikehau.

Moreover, DWS and Tikehau Capital intend to launch a joint product leveraging the two companies' alternative asset management expertise and platforms. This new product is expected to be launched in 2019.

The two asset managers will start their alliance immediately. All cooperation initiatives will be subject to both companies' legal, regulatory (including anti-trust), accounting and tax due diligence and approval.

Previously the asset management arm of Deutsche Bank – an LP in buyout funds and funds-of-funds – DWS separated from the bank by partially listing on the Frankfurt Stock Exchange, as reported in the Unquote's LP profile of DWS. Though the firm is operationally independent, the bank still holds a majority stake in the listed asset manager.

As of September 2018, DWS had assets under management of €700bn, with more than €70bn of alternatives across real estate, infrastructure and private equity. DWS recently launched its private equity platform with a secondaries focus, as reported by Unquote in September.

Tikehau manages an AUM of €14.8bn, of which private debt represents €6.4bn, real estate €2.6bn, liquid strategies €3.6bn and private equity €2.2bn (including €0.6bn in assets management and €1.6bn in direct investments). Describing itself as a private assets specialist, Tikehau has diversified its activities since founding in 2004 and today invests in private debt, real estate, private equity and liquid strategies. 

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