The two firms have joined forces to identify and develop various business opportunities.

European asset managers DWS Group and Tikehau Capital have forged a strategic alliance, extending their link after Tikehau took part in DWS' share float in March 2018.

Following the agreement, the two asset managers aim to identify and develop various business opportunities, looking at a range of initiatives.

The firms intend to launch a joint product in 2019 taking advantage of their alternative asset management expertise and platforms.

They want to cross-invest in respective funds, with Germany-based DWS planning to benefit from the French firm Tikehau’s Subordinated Financial Debt expertise, and Tikehau aiming to participate in DWS’ sustainable and impact investing expertise. DWS plans to invest into a new initiative by Tikehau which would pursue a special situation strategy, and DWS is also considering further investments in other Tikehau funds. ("Special situation" refers to reasons for investing in a firm that are unusual and rare rather than based on the underlying fundamental strengths of a business.)

DWS and Tikehau Capital also want to strengthen their links and discussions on private equity and non-listed infrastructure opportunities. The two asset managers see particular opportunities in sustainable and impact investing. Tikehau's loans expertise will be introduced to DWS’s German client base. Other initiatives include collaborating on identifying funds for potential distribution through the companies’ respective channels, and looking for and considering co-investment opportunities for funds managed by either company.

The two asset managers said that they 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.

“This is an important alliance aligned fully to our ambition to expand our presence further in the alternatives asset class, an area where we see sharply increasing interest from clients,” said Nicolas Moreau, chief executive and chairman of the executive board of DWS Group. “We look forward to working closely with Tikehau Capital to the benefit of our clients, bringing together our complementary skills and expertise in alternative investing.”

Antoine Flamarion, co-founder of Tikehau Capital, added: “With this strategic alliance, we are creating a framework to deliver significant added-value based on our respective expertise. It shows how meaningful it was to participate in DWS’s IPO. We are working closely on the implementation of our respective growth strategies and on additional initiatives.”