Tikehau Capital Sets Ambitious 2026 Targets with UAE and GCC Growth in Focus

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Tikehau Capital 2026 Strategy - private equity and alternative investment growth for the UAE and GCC.

Tikehau Capital ended 2025 with €52.8 billion in assets under management, a 22% compound annual growth rate since its Paris IPO.
Gross inflows surpassed €10 billion for the first time in 2025, with net inflows of €8.0 billion and record fee-related earnings.
The firm targets at least €60 billion in AuM and fee-related earnings of €175-225 million in 2026, both above analyst expectations.
Net profit is targeted at €420-520 million in 2026 - roughly three to four times the €136 million reported in 2025.
Abu Dhabi Investment Authority co-led Tikehau's €1 billion-plus Egis continuation fund, highlighting strong UAE sovereign interest in its decarbonisation strategies.
The Abu Dhabi ADGM office positions Tikehau as a dedicated regional hub for GCC sovereign, institutional and private wealth relationships.

Abu Dhabi Global Market Hub at the Centre of Tikehau's GCC Ambitions

Paris-listed Tikehau Capital has positioned its Abu Dhabi Global Market (ADGM) office as the gateway to a strategically important region. As global private markets expand and sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA) increase their allocations to alternative assets, the firm is well placed to capitalise on rising GCC demand for private equity, credit and infrastructure strategies.

The group's 2025 full-year results, released on 18-19 February 2026, confirmed record inflows and a fee-related earnings (FRE) margin above 40% for the first time. FRE measures the recurring income from asset management activity, excluding performance fees. The accompanying strategic update signals a shift from building out new strategies to harvesting returns, with the GCC identified alongside Asia-Pacific and North America as a high-priority growth market.

Record 2025 Results Confirm Platform Maturity

Tikehau Capital closed 2025 with assets under management (AuM - the total value of client assets the firm oversees) of €52.8 billion, representing a 22% compound annual growth rate since its IPO. According to Business Wire, gross inflows exceeded €10 billion for the first time, while net inflows reached €8.0 billion. The group deployed €7.6 billion across its private markets strategies and realised €4.0 billion during the year.

Asset Management EBIT - earnings before interest and tax from the asset management division - reached €150 million, up 18% year-on-year. The core FRE margin hit 41%, exceeding 40% for the first time and confirming operating leverage across the platform. Net profit attributable to the group reached €136 million, though this was held back by €52 million of adverse currency effects on the firm's international portfolio.

Ambitious 2026 Financial Targets Mark the Harvesting Phase

Tikehau's February 2026 strategic update sets out a decisive step-change in profitability. Management targets at least €60 billion of AuM by end-2026 - around 14% growth on the 2025 figure and ahead of market expectations. FRE is targeted in a range of €175-225 million, implying growth of between 37% and 76% versus 2025.

The most striking target is net profit: the group aims for €420-520 million in 2026, compared with €136 million in 2025. Return on equity (ROE - net profit as a percentage of shareholder equity) is targeted at 13-16%, well above analyst consensus of around 8%. Management described this transition as a move "from buildout to harvesting", reflecting the maturing of strategies launched over the past decade.

Over the four years to 2029, Tikehau plans for cumulative net inflows exceeding €34 billion - 22% more than the €28 billion raised between 2022 and 2025. The core FRE margin is targeted at 45-50% by 2029, driven by a richer mix of higher-fee, value-add strategies and tighter cost discipline. Unrealised performance-related earnings stood at approximately €220 million as of September 2025, with around €160 million expected to mature by 2029.

UAE and GCC Identified as Core Distribution Priority

The GCC features prominently in Tikehau's regional distribution strategy. The firm opened its first GCC office at Abu Dhabi Global Market in July 2023, making it the group's 15th global hub. Co-founders Antoine Flamarion and Mathieu Chabran described the move as a "significant milestone" and a platform to serve sovereign wealth funds, financial institutions and family offices across the region.

The February 2026 strategic update names the Middle East among "high growth and under-penetrated regions" earmarked for institutional network expansion. Tikehau intends to broaden distribution through private banks, independent financial advisers and digital platforms. The Abu Dhabi team is tasked with originating and structuring deals in collaboration with local stakeholders across sectors including decarbonisation, food security and cybersecurity.

ADIA Backs Tikehau's Egis Decarbonisation Fund

Tikehau's climate credentials are directly relevant to its UAE growth story. By end-2025 the firm had exceeded its €5 billion target in climate and biodiversity strategies, reaching €5.8 billion of AuM, according to New Private Markets. Its private equity decarbonisation strategy, launched in 2018, has grown to approximately €2.5 billion of AuM.

In 2025, Tikehau raised more than €1 billion through a continuation vehicle for Egis, a portfolio company specialising in infrastructure, mobility and energy transition. A continuation vehicle extends the life of a private equity fund to allow further value creation before exit. Apollo S3, a wholly owned subsidiary of ADIA, co-led the investment alongside Neuberger Berman - a clear signal of UAE sovereign interest in Tikehau's decarbonisation platform.

The UAE connection goes further. Egis is actively involved with Etihad Rail in expanding the UAE's rail network to more than 1,000 km, serving approximately 40 freight terminals. As reported by ESG News, Tikehau executives have highlighted that transport accounts for around 23% of global energy-related CO2 emissions, making rail infrastructure a central pillar of its decarbonisation thesis and its regional strategy.

Balance Sheet Repositioned for Capital Efficiency

Alongside its growth targets, Tikehau is repositioning its €3.1 billion equity base from a broad growth enabler to a more selective capital allocator. Commitments to the firm's own strategies will focus on value-add opportunities targeting returns above 15%, with reduced exposure to mature flagship funds where third-party capital is sufficient.

For ecosystem transactions - such as stakes in other general partners (GPs), external fund commitments and strategic co-investments - Tikehau will focus on deals offering double-digit capital-mobilisation multipliers and the potential to generate co-investment business with external partners. The group reiterated its commitment to an investment-grade credit rating and to distributing more than 80% of Asset Management EBIT to shareholders.

What Clients are Asking their Advisors

What is Tikehau Capital and how does it invest in the UAE?

Tikehau Capital is a Paris-listed global alternative asset manager with €52.8 billion in assets under management across private credit, private equity, real assets and capital markets strategies. The firm opened its first GCC office at Abu Dhabi Global Market in 2023, using it as a hub to serve UAE and regional sovereign wealth funds, banks and institutions.

How can UAE-based investors access Tikehau Capital's private markets funds?

Institutional investors can engage Tikehau directly through its Abu Dhabi ADGM office. The firm also distributes through private banks, independent financial advisers and digital platforms, and offers structures such as feeder funds and semi-liquid vehicles designed for private wealth clients and family offices.

How does Tikehau Capital's 2026 AuM target compare with its current scale?

Tikehau targets at least €60 billion in assets under management by end-2026, up from €52.8 billion at end-2025 - representing around 14% growth and slightly above analyst consensus. The firm has expanded from under €10 billion at its IPO, achieving a 22% compound annual growth rate over that period.

What are the main risks for GCC investors considering Tikehau Capital's private markets strategies?

Private markets investments are illiquid by nature, meaning capital is typically locked up for several years and cannot easily be sold. Currency risk is also material - Tikehau reported €52 million of adverse foreign exchange effects in 2025. Performance fees depend on exits and valuations that can be delayed by shifting market conditions.