Tikehau Capital's Buybacks and Defense Plays: A Recipe for Growth in Uncertain Times

In a world where geopolitical tensions and cybersecurity threats loom large, investors are seeking assets that blend defensive stability with growth potential. Enter Tikehau Capital, the Paris-based alternative asset manager, which is making bold moves to capitalize on both trends. Let's dissect its recent share repurchases and strategic fund launches—two prongs of a strategy that could deliver outsized returns.

The Buyback Blitz: Reinforcing Value

Tikehau has been aggressively repurchasing its own shares in early 2025, signaling confidence in its long-term prospects. Between June 6 and June 12, the company bought back 4,528 shares at a weighted average price of €19.03, with daily transactions averaging roughly 1,000 shares. While data for the June 13–19 period is partially truncated, the trend is clear: Tikehau is using its cash to reduce outstanding shares, thereby boosting earnings per share and potentially driving long-term shareholder value.

This isn't just corporate window dressing. Buybacks are accretive when executed at the right price. Tikehau's stock has traded in a narrow range this year, and these purchases suggest management believes the stock is undervalued.

The Defense & Security Fund: A Bullish Bet on Volatility

Tikehau's most intriguing move? A new private equity fund targeting defense, cybersecurity, and security sectors in Europe. Partnering with heavyweights like Société Générale Assurances and CNP Assurances, this fund taps into a sector primed for growth.

Why now? Geopolitical risks—from cyberattacks to military tensions—are forcing governments and corporations to invest heavily in defensive infrastructure. The European defense market alone is projected to grow at 4–6% annually through 2030. Tikehau's fund isn't just capitalizing on this; it's positioning itself as a go-to partner for institutional investors looking to allocate to “hard assets” in uncertain times.

Cybersecurity and Energy: The Twin Engines of Growth

The defense fund isn't Tikehau's only ace. Its Brienne Cybersecurity Fund, which hit a €200 million first close in 2023, is already outperforming its predecessor. Meanwhile, the Energy Transition Fund—launched in 2021—has raised over €1 billion for renewable projects, proving demand for sustainable infrastructure.

These sectors are no-brainers. Cybersecurity spending is expected to hit $335 billion globally by 2030, while energy transition investments are government-backed in regions from Europe to Asia. Tikehau's early-mover advantage here could pay massive dividends.

The Bottom Line: A Play for Aggressive Investors

Tikehau isn't just another asset manager—it's a sector-specific disruptor. Its buybacks clean up its balance sheet, while its fund launches target high-growth niches. For investors, this creates two opportunities:

1. Buy the Stock: Tikehau's shares trade at a 12.5x P/E ratio, below its five-year average. If its funds deliver, earnings could accelerate, making this a compelling long-term hold.

2. Invest in the Funds: Accredited investors can access Tikehau's strategies through life insurance products or institutional allocations. The defense fund, in particular, offers exposure to a sector that's recession-resistant and policy-driven.

Caveats and Risks

No investment is risk-free. Tikehau's reliance on European markets leaves it exposed to regional economic slowdowns. Additionally, geopolitical tensions could spike volatility, testing the resilience of its defense and energy bets.

But for investors willing to ride out short-term turbulence, Tikehau's mix of capital discipline and sector-specific focus makes it a standout pick.

Final Verdict

Tikehau Capital is executing a textbook strategy: shrink its share count to boost value and invest in sectors that thrive in chaos. If you're bullish on defense spending, cybersecurity, or energy transition—this is your fund manager.

Action Alert: Consider a position in Tikehau's stock for capital appreciation or allocate to its sector-specific funds via institutional channels. The volatility of 2025 could be exactly what Tikehau needs to shine.

Investing in private equity funds requires careful due diligence and is suitable only for accredited investors. Always consult a financial advisor before making investment decisions.