The firm is carrying on the first investment of its defence private equity vehicle that will start to distribute in September with unit linked products that anchor investor Société Générale Assurances, CNP Assurances and CARAC Group structured
Tikehau Capital is holding exclusive talks for acquiring Belgium’s ScioTeq, a provider of advanced visualisation and computing solutions for the aviation, defence, security and air traffic control sectors born in 1980, from OpenGate Capital which owns the asset since 2021 and that may reinvest for a minority (press release).
Tikehau Capital will carry on the deal through Tikehau Défense et Sécurité 2 (TDS 2) that recently launched (press release). JPMorgan will finance the transaction with an unitranche facility.
ScioTeq products portfolio includes items for the avionics, defence and security, and air traffic control sectors, supporting leading aerospace contractors and manufacturers globally. The group has additional production sites in France and USA, as well as sales offices in India and Singapore, thanks to which it can serve customers in Europe, North America and Asia, and more than 140 professionals for R&D activities.
Tikehau Capital will support ScioTeq’s next phase of development, focusing on accelerating international growth, enhancing innovation and further strengthening the company’s position as a trusted partner in the aerospace and defence sectors.
Robert Gibbs, ScioTeq ceo, said: “This new partnership marks an important milestone for us. I am delighted to begin working with Tikehau Capital to accelerate our development, expand our international presence and continue to provide high-performance solutions to our customers. Tikehau Capital’s deep knowledge of our industry and long-term vision make it an ideal partner for years to come”.
Fabien Marcantetti, a managing director of OpenGate, added: “We are proud of the transformation path that ScioTeq took in recent years and look forward to continuing to be part of its next phase of growth. We believe Tikehau Capital is the ideal partner to support the company over the long term, thanks to their deep industry knowledge and collaborative investment approach”.
Fabien Roualdes, Tikehau Capital co-head of Aerospace & Defense private equity, concluded: “ScioTeq is exactly the kind of industry partner we are proud to support: a company with deep technical expertise, solid customer relationships and a clear path in global growth markets. We are excited to work alongside the team to build on their success and seize new opportunities.”
TDS 2 is compliant with Article 8 SFDR and has the structure of an evergreen Eltif 2.0 with a 99-year tenure while providing delivery and repayment opportunities every 15 days. The fund’s distribution will start in September 2024 with the support of Société Générale Assurances, CNP Assurances and CARAC Group that will sell the Eltif as unit linked product in the frame of the firms’ life insurance and retirement savings products. TDS 2 initial commitment amounts to 150 million euros that the three insurer subscribed in even portions.
The three insurance partners will have a one-year exclusive until September 2026 for placing and distributing the vehicle within their own policies. At the end of this period, other insurers will be able to sell TDS 2 to any professional investor.
Henri Marcoux, deputy ceo of Tikehau Capital, pointed out: ” We launched four unit-linked products on private assets in five years and became a key player in the democratisation of unlisted investments through life insurance policies in France. Tikehau raised above 1.5 billion euros to date. Given the strength of this experience and the rapidly changing geopolitical environment, we now aim to go a step further by offering a fund that invests predominantly in private equity. This will enable insurers to participate in the national investment effort in strategic sectors”.
In 2023, Tikehau and Société Générale Assurances launched SG Tikehau Dette Privée, an unique unit-linked product to offer retail investors the opportunity to finance selected unlisted French and European companies while supporting the reduction of their CO2 emissions (press release). In 2021, Tikehau and MACSF created Tikehau Financement Entreprises which was availabe as part of the MACSF’s RES Multisupport life insurance policy and the RES Retraite retirement savings plan (press release).
