Tikehau Capital aims for €175m-€225m in fee-related earnings by 2026, marking 37-76% growth versus 2025 and roughly 20-50% above analyst forecasts. The Paris-based alternative asset manager targets €60bn+ in assets under management through geographic expansion and value-add strategies, mirroring moves by European peers seeking growth beyond domestic markets.
Core FRE margins are projected to reach 45-50% by 2029, up from 41% in 2025, as the firm scales operations. European private equity managers are balancing aggressive expansion with deal selectivity—rejecting over 95% of reviewed opportunities while pursuing international investments to capture market dislocations.
The strategy reflects broader European alternative asset manager trends. Fairfax India announced parallel international diversification initiatives, while firms across the continent capitalize on government incentives designed to attract PE capital amid volatile markets creating entry points.
Industrial real estate is emerging as a cross-border focus area. Corniche Capital plans up to 400,000 square feet of build-to-suit industrial space at Los Morros Business Park in Los Lunas, New Mexico, targeting food-grade cold storage, defense manufacturing, and hyperscale data centers. "Los Lunas sits at the center of everything industrial tenants need: power, transportation, labor, and a state government that actively wants to help businesses grow," said David Ebrahimzadeh of Corniche Capital.
New Mexico's economic incentives make the location "one of the most cost-effective in the country to build and operate," Ebrahimzadeh added, highlighting the infrastructure advantages attracting international capital to US industrial markets.
European PE firms are deploying capital in single-digit percentages of reviewed deals, filtering hundreds of opportunities to maintain quality while expanding AUM. This disciplined approach aims to position European managers against larger US and Asian rivals while sustaining operational efficiency through higher fee margins—a critical factor as competition for global deals intensifies.