Tikehau Capital projects assets under management above €60 billion by 2029 with core fee-related earnings margins reaching 45-50%, up from 41% in 2025. The Paris-based firm expects cumulative net inflows exceeding €34 billion over the period, 22% higher than 2022-2025 fundraising.
International investors comprise 46% of Tikehau's AUM compared to 20% in 2016, marking a significant capital shift toward European private equity after years of North American market dominance. The firm set 2026 milestone targets of €175-225 million in fee-related earnings, 37-76% above 2025 levels and approximately 20-50% above market expectations.
Value-add strategies now account for 25% of Tikehau's AUM versus less than 1% at IPO, reflecting sector-wide movement away from generic buyouts. European policy initiatives supporting capital markets union and pension fund reforms are channeling additional institutional capital toward regional private equity strategies.
Established North American players are executing parallel transformations. Onex completed strategic moves including the Convex acquisition and AIG partnership. CEO Bobby Le Blanc called the Convex deal "a pivotal moment in Onex' evolution that meaningfully enhances our growth prospects."
Portfolio rationalization accelerated globally. Etsy sold its Depop subsidiary to Apax Partners while Keurig Dr Pepper explored acquisition options for JDE Peet's coffee business. Apollo Global Management launched a $1.5 billion Multi-Asset Continuation Vehicle to provide liquidity for existing investors while retaining assets.
The consolidation reflects private equity's adaptation to elevated interest rates and changing market conditions. Firms are emphasizing operational improvements and margin expansion over leverage-driven returns. Entry valuations remain attractive compared to 2021 peaks across both European and North American markets.
Improving European market conditions and supportive regulatory frameworks are driving renewed institutional interest in the region. The combination of policy tailwinds, portfolio optimization, and international diversification positions major firms for sustained growth despite macroeconomic headwinds.