Tikehau Capital set 2026 targets of €175m-€225m in fee-related earnings, representing 37-76% growth versus 2025 and roughly 20-50% above market expectations. The Paris-based firm aims to reach €60bn+ in assets under management through geographic diversification and a shift toward value-add investment strategies.
Core FRE margins are projected to climb from 41% in 2025 to 45-50% by 2029 as the firm scales operations and refines deployment criteria. European private equity managers are maintaining discipline despite expansion goals, rejecting over 95% of reviewed opportunities while pursuing selective international deals.
The expansion strategy reflects broader trends among European alternative asset managers seeking growth beyond domestic markets. Fairfax India has announced parallel expansion initiatives, targeting similar international diversification to capture market dislocation opportunities.
Industrial real estate is emerging as a key focus area. Corniche Capital announced plans for up to 400,000 square feet of build-to-suit industrial space at Los Morros Business Park in Los Lunas, New Mexico. "Los Lunas sits at the center of everything industrial tenants need right now: power, transportation, labor, and a state government that actively wants to help businesses grow," said David Ebrahimzadeh of Corniche Capital.
The facility will accommodate custom configurations ranging from food-grade cold storage to defense manufacturing and hyperscale data centers. "The economic incentives New Mexico offers make this one of the most cost-effective locations in the country to build and operate," Ebrahimzadeh added.
European private equity firms are capitalizing on policy tailwinds across the continent, where governments have implemented measures to attract alternative asset managers. These incentives, combined with market volatility creating entry points, are supporting the aggressive growth targets set by firms like Tikehau.
The sector's selective approach—filtering hundreds of opportunities to deploy capital in single-digit percentages—aims to balance rapid AUM expansion with quality deal flow. This disciplined strategy positions European managers to compete with larger US and Asian rivals while maintaining operational efficiency through higher FRE margins.