Mathieu Chabran, co-founder of Tikehau Capital, explains why managers that invest substantial balance sheet capital alongside their LPs have a structural advantage.
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“And I really believe that it's certainly the model of the future where people will be looking for an increased alignment between the LPs and the GPs.”
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More from Mathieu Chabran
Opinion
Chabran: Carried interest is a cheap alignment option versus real sweat equity
“We all know that the alternative markets have generated this optionality, which will be by way of carried interest, incentive fees, that people would put as a The alignment of interest, I actually think, you know, it's a fairly cheap option compared to any oth…”
Mathieu ChabranOct 12, 2020▶ 17:40Mathieu Chabran – Good Deals Have No Wheels at Tikehau Capital (First Meeting, EP.23)
Insight
Chabran: Asset managers remaining largest shareholder eliminates incentive distortions
“And by remaining the largest shareholder here, we had created what I think is the perfect alignment of interest, where effectively not only you put your money where your mouth is, But you know that you do not create some kind of distortion of interest that som…”
Mathieu ChabranOct 12, 2020▶ 13:48Mathieu Chabran – Good Deals Have No Wheels at Tikehau Capital (First Meeting, EP.23)
Insight
Chabran: In European private markets, 'good deals have no wheels'
“We have a saying at TKO, we like to say, good deals have no wheels. And by the time the opportunity hits, you know, some investment banker's desk, you know, in London, a lot of smart people on the ground have seen the opportunity.”
Mathieu ChabranOct 12, 2020▶ 30:25Mathieu Chabran – Good Deals Have No Wheels at Tikehau Capital (First Meeting, EP.23)
Opinion
Mathieu Chabran: Generating Returns Was Rolling Double Sixes Last Decade
“We're just coming out a 10 years period where, no offense, but it was easy to generate some performance when you are throwing the dices and it's double six all the time.”
Mathieu ChabranOct 12, 2020▶ 53:15Mathieu Chabran – Good Deals Have No Wheels at Tikehau Capital (First Meeting, EP.23)
Opinion
Chabran: Financial services has very few entrepreneurs, especially in Europe
“There are actually very little and very few entrepreneurs, you know, in the financial services business, and probably even more so in Europe.”
Mathieu ChabranOct 12, 2020▶ 6:58Mathieu Chabran – Good Deals Have No Wheels at Tikehau Capital (First Meeting, EP.23)
AssertionNot checkable as stated
Chabran: Small emerging funds cannot overcome traditional institutional consultant diligence
“When we started, you know, these four million euros were effectively an evergreen structure that we grew over time, you know, not only by the income that the deal we made and the successful deal, you know, we exited and contributed to the earning, but then we …”
Mathieu ChabranOct 12, 2020▶ 13:07Mathieu Chabran – Good Deals Have No Wheels at Tikehau Capital (First Meeting, EP.23)
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