Tikehau closes T2 Energy Transition Fund on €1.1bn

Alessia Argentieri
23 February 2021

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Tikehau Capital has held a тЌ1.1bn final close for its private equity vehicle dedicated to energy transition, T2 Energy Transition Fund.

Tikehau launched the vehicle in March 2018, in partnership with French energy company Total. The fund held a €350m first close in December 2018.

"We launched the platform in 2018 with the ambitious objective of raising between €750m and €1bn, which we have now far exceeded," said Emmanuel Laillier, head of private equity at Tikehau Capital. "Our success also highlights the need to strengthen companies' equity bases to move faster with energy transition."

He added: "This is an outstanding performance for a first generation of funds dedicated to energy transition. We want to support the growth of European SMEs in a sector that is playing a crucial role in addressing the climate emergency."

The fund invests in companies operating in the field of energy transition by financing and supporting their development, transformation and international expansion. According to a statement, the fund's strategy will benefit from the GP's investment expertise, and Total's industry experience and international network.

The fund's investment team, which is composed of Tikehau fund managers and energy experts appointed by Total, reports to an investment committee with representative members from both partners.

Goldman Sachs acted as placement agent towards institutional investors on behalf of Tikehau.

T2 Energy Transition Fund often co-invests with Tikehau's first European Long-Term Investment Fund (ELTIF), which was launched in April 2020 and is dedicated to Banca March private clients in Spain.

Tikehau has €28.5bn in assets under management, and specialises in investments across private debt, real estate, private equity and capital markets, as well as multi-asset and special opportunities.

Investors
T2 Energy Transition Fund attracted a large base of LPs from different geographies.

Tikehau and Total committed €200m each to the vehicle, while the remainder was raised from two anchor investors – investment bank BPI France and French insurance company Groupama – and from several European institutional investors, including the European Investment Fund, and various family offices.

Investments
The fund targets medium-sized companies based in Europe operating in three key sectors of energy transition: clean energy production; low-carbon transport; and improvement in energy efficiency, storage and digitalisation. It deploys equity tickets of €25-75m.

The vehicle has already invested €440m in six European SMEs: GreenyYellow, a French energy supplier for retailers; Rougnon, an environmental engineering specialist; Crowley Carbon, an Irish energy efficiency expert for the manufacturing sector; Amarenco, a British solar power business; Enso, a Spanish biomass energy company; and Euro Group, an Italian manufacturer of steel components for electrical motors.

People
Tikehau Capital – Mathieu Chabran (co-founder); Emmanuel Laillier (head of private equity).