The partnership will enhance the global investment capabilities and presence of both groups through a distribution agreement and joint venture.

Tikehau Capital, a global alternative asset management group, and Nikko Asset Management, a large Asian asset manager, have just completed a partnership agreement. The partnership aims to respond to growing investor demand for private assets, while tackling secular investment themes.

Effective this week, the partnership encompasses three key components designed to enhance both groups’ global investment capabilities and presence through a distribution agreement/joint venture with Nikko Asset Management which is taking an equity stake in Tikehau Capital.

The distribution agreement, which takes effect immediately, gives Nikko Asset Management exclusive distribution rights for Tikehau Capital's products, mainly in Japan, and non-exclusive distribution rights in other selected Asian markets, including its European direct lending, private equity decarbonisation and private debt secondaries strategies, as well as any other funds deemed appropriate.

The joint venture will be located in Singapore, with incorporation and submission of a licensing application targeted by the end of 2024, the firm said in a statement. The launch of the joint venture is subject to obtaining regulatory approval. The aim is to develop Asia-focused private asset investment strategies jointly, and design and launch products to respond to growing investor demand for private assets, while tackling strong secular investment themes. It will use Tikehau Capital's expertise achieved in Europe to launch an investment strategy focusing on decarbonisation in Asia. The products would be distributed by both groups' global networks.

In addition, Nikko Asset Management is in the process of acquiring an equity stake in Tikehau Capital. This stake, which will remain below the first applicable statutory disclosure threshold, is a significant step in cementing the alliance between both groups, the firm added.

Nikko Asset Management, which manages over $240 billion of assets, brings a distribution and client service network, experience and market intelligence to the partnership, enhancing Tikehau Capital's presence in Japan and across Asia.

Tikehau Capital, which has a track record in the private markets sector, has expanded its presence in Asia for a decade, driven by regional coverage, with the opening of several local offices, and the onboarding of top-tier clients and partners. The alliance with Nikko Asset Management is a step forward in expanding Tikehau Capital’s footprint in Asia through a deeper client reach and additional investment capabilities.