Asset management

Tikehau acquires Sofidy and crosses the 20 billion mark in assets under management

Exclusive: An acquisition at 220 million euros. Sofidy was created in 1987 by the father of Antoine Flamarion, co-founder of Tikehau.

Tikehau has just entered into exclusive negotiations to acquire 90% of the capital of Sofidy, the leading independent player in the SCPI market with 4.8 billion euros under management. The operation will allow Tikehau to strengthen its real estate division, which will go from 2.6 to 7.4 billion euros. The volume under management in real estate will then be greater than the outstanding private debt. Tikehau’s historic activity weighed 6.4 billion as of June 30. “We had expressed our wish to balance our activity between our four business lines: private debt, private equity, real estate and liquid assets,” said Mathieu Chabran, co-founder of Tikehau Capital.

Growth in outstandings

In addition, with the group’s assets under management increasing by more than 30%, the target of 20 billion euros in assets by 2020 “will be widely anticipated since we are now targeting 21 billion euros at the end of 2018. . “

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The acquisition of Sofidy is also a matter of transmission. The SCPI specialist was created in 1987 by Christian Flamarion, father of Antoine Flamarion, co-founder of Tikehau. And before the transaction, Antoine Flamarion held a 5% stake in Sofidy, as well as the bare ownership of his father’s shares.

Anxious to remove any suspicion of conflict of interest, Tikehau plays the transparency card. The price paid? 220 million for 100% of the securities. That is 121 million in enterprise value, to which is added 99 million in cash. “The operation should be made in cash up to 90/95%, the balance being paid in Tikehau shares. », Explains Mathieu Chabran.

Access to individuals

The latter defends a “very profitable” operation. “The company was valued less than seven times its EBITDA [20 millions d’euros, ndlr]. It would probably have sold well beyond this multiple if it had been sold to an unselected third party via a traditional auction procedure. »In 2017, Sofidy generated around 100 basis points of net income on its assets under management and an operating margin of around 40%. “This acquisition allows us to double the operating income of our management activities and to have assets that generate more commissions. “

Another advantage of the operation: to allow Tikehau to have access to individuals. “Until then we didn’t work a lot with wealth management advisors. We plan to develop several types of products based on alternative assets such as private debt or private equity for individual clients. “

To note

Tikehau’s assets under management increased by 7% in the first half of the year and stood at 14.8 billion euros as of June 30, 2018.