DWS Group and Tikehau Capital have agreed to enter into a strategic alliance, deepening their relationship following Tikehau’s participation in the initial public offering of DWS in March 2018. With the agreement, the two asset managers aim to identify and develop various business opportunities.
“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, CEO 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 said: “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.”
DWS and Tikehau Capital intend to launch a joint product leveraging the two companies’ alternative asset management expertise and platforms. This new product is expected to be launched in 2019.
They also intend to cross-invest in respective funds:
– DWS plans to participate in Tikehau’s Subordinated Financial Debt expertise
– Tikehau plans to participate in DWS’ sustainable and impact investing expertise
– DWS intends to invest into a new initiative by Tikehau which would pursue a special situation strategy
– DWS is also considering further investments in other Tikehau funds
The partnership will strengthen their links and discussions on Private Equity and non-listed Infrastructure opportunities. Both the asset managers will mutually bring value and expertise to each other with significant beneficial effects on deal co-sourcing and co-invest opportunities. They also 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 seeking to find and consider co-investment opportunities for funds managed by either DWS or Tikehau.
The two asset managers 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.