Tikehau Capital has completed the final closing of the sixth generation of its European Direct Lending strategy with €5.2 billion in commitments, excluding leverage.
The latest strategy is nearly 60% larger than its predecessor and represents another expansion of Tikehau Capital’s private credit platform.
Direct lending funds provide loans directly to companies rather than purchasing broadly syndicated debt through public markets.
The strategy generally gives asset managers greater control over loan structures, pricing, covenants and borrower selection while offering companies an alternative source of capital to traditional bank financing.
Tikehau’s latest strategy focuses primarily on established European middle-market companies with defensible business models and strong competitive positions.
The fund began investing in March 2024 and has completed 30 transactions. It has also realized four exits that generated double-digit returns, according to Tikehau.
The strategy is already 44% deployed, indicating that nearly half of its committed capital has been invested or allocated across portfolio companies.
Tikehau said the portfolio has an average exposure of approximately 10% per industry sector, limiting concentration in any single part of the economy.
Initial borrower leverage averaged no more than four times net debt to EBITDA when investments were made. That figure has subsequently declined to approximately 3.5 times because of the operating performance of the underlying companies.
Net debt-to-EBITDA compares a company’s debt, after subtracting cash, with its operating earnings. Private credit managers use the measure to evaluate whether borrowers are carrying sustainable levels of debt.
The strategy attracted commitments from a geographically diversified group of institutional investors.
Most of the capital was raised outside Europe, including 18% from North American investors and 28% from investors in Asia and the Middle East.
The international fundraising mix reflects growing institutional demand for private credit strategies offering exposure to European middle-market borrowers.
Tikehau’s private debt investment team includes approximately 30 professionals who source and evaluate transactions across Europe.
The firm plans to continue working with established private equity sponsors while providing customized financing for acquisitions, refinancing transactions and other corporate needs.
Tikehau said the strategy will maintain a selective underwriting process with an emphasis on capital preservation and portfolio diversification.
The firm managed approximately €53 billion in assets as of March 31, 2026. Its broader investment platform covers credit, real assets, private equity and capital markets strategies.
Tikehau had approximately €3.1 billion of shareholders’ equity at the end of 2025 and invests its own capital alongside clients. The company employed 723 people across 17 offices in Europe, Asia and North America as of March 31, 2026.
