Ladies and gentlemen, welcome to the Tikehau Capital Half Year 2022 results conference call. For the duration of the call, your lines will be on listen only. However, there will be the opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question at any time. If at any point you require assistance, please press star zero, and you will be connected to an operator. Today, I am pleased to present Mathieu Chabran, Co-founder, and Henri Marcoux, Deputy CEO. Gentlemen, the floor is yours.
Thank you. Thank you so much, and good evening, everyone. Thanks for joining us on this Tikehau Capital H1 2022 results conference call. I'm Mathieu Chabran, Co-founder of the company, and I'm joined effectively tonight by Henri Marcoux, Deputy CEO, as well as our Investor Relation Team with Théodora XU and Louis Igonet. We'll go through a brief overview of the results, and then we'll be more than happy to take your questions. Starting with the slideshow, maybe on slide number four, with a couple of highlights I wanted to put forward. First, H1 2022 has been a strong H1 for Tikehau. We have seen our dual model clearly playing out and leading to strong performance across the board, ultimately translating to material net income growth for the first six months of the year.
Second, on top of our fast-growing asset management activity, our investment portfolio delivered strong revenue growth in H1, mainly driven by our own strategies. Indeed, the Tikehau Capital Funds, in which we are investing a vast majority of our balance sheets, are delivering increasingly predictable and growing returns. Third, we delivered strong fundraising. Client demand remains strong for our strategies, so we managed to increase the pace of fundraising in H1 2022, despite the uncertainties linked to the geopolitical and economic environment with an acceleration in Q2 compared to Q1. In addition, we kept a strong deployment pace without any compromise in terms of selectivity. Fourth, we have invested in our asset management platform. After a period marked by COVID, during which we had slowed down in terms of OpEx, we accelerated since H2 2021 in platform investments.
That means staffing, reinforcing our teams and our infrastructure to support new strategies and secure future growth. We view this active hiring and OpEx investments as very timely in order to make sure that our platform is at full capacity to seize opportunities linked to future dislocation caused by rising interest rates and the return of inflation. Now, let's be clear, from now on, in H2, we will be more selective when it comes to hiring and OpEx investments. Finally, I mean, obviously, we're happy to, of course, to confirm our 2026 outlook, the one we gave you at the Capital Markets Day a few months ago. We get back to that a bit later with that. Maybe before we go through the various achievements of the first half, a word on the current environment and our position.
I'm now on slide number five. During our Capital Markets Day, our Deputy CEO, Thomas Friedberger, explained in detail our approach when it comes to investments and our positioning in the private markets industry. We think that in the context of rising rates and return of inflation, we have built a resilient setup. We can navigate the current environment, and as such, we've been incorporating cycle change within our operations and anticipating the end of what we think was not sustainable. Unreasonable valuation, complacent financing conditions, and high leverage. I think we've been very consistent on that, and you have heard us delivering this message repeatedly over time. First, we are typically, as we've always been, very disciplined in the way we're investing our own funds.
I remind you that alignment of interest is at the heart of our model and that our balance sheet is invested in priority in our funds alongside our clients. We have been keeping a very strong approach when it comes to investment selectivity. Second, we are positioned on complementary asset classes, tackling specific verticals that provide investors with a compelling risk-reward balance in the current environment. We prioritize downside protection, limited leverage, focus on long-term mega trends, nurture a contrarian mindset, not necessarily embracing mainstream trends that you may have seen in the industry during the past few years, and which have been leading to excesses. Third, we remain convinced from the discussions we're having with clients that long-term allocations have not been met yet, and that LP demand for alternative assets is set to remain strong. We'll get back to that.
Even through the current cycle, we may see fundraising decisions that can take more time. That's a more cyclical situation. I would say that on a more structural note, we don't see any change in client appetite for our products. Actually, quite the contrary. If I move now onto slide eight, starting now with our capital deployment momentum, which was very strong in the first half, during which we selectively deployed EUR 3.3 billion across our asset classes. This is 1.8 x what we deployed in H1 2021. There, my first comment would be that this step up in deployment is, in fact, representative of the growth and expansion of our platform globally.
What is important to bear in mind is that even though we're deploying more capital, we are maintaining a very high level of selectivity and discipline across our funds, and this is evidenced by the 97% average exclusion rate recorded during the first half. We've been consistently maintaining over the years an exclusion rate of above 95%, even though the number of transactions we've been analyzing and reviewing through our funds has increased dramatically. It's less than 5% of everything we look at that eventually gets done. As you can also see on this slide, private debt accounted for the majority of H1 2022 deployments, followed by private equity, in particular energy transition and aerospace strategies, and real assets, with mainly the deployment made by Sofidy over the period.
You see here on this slide a couple of examples of the deals that we've been concluding so far. Very high-quality companies on strong verticals that we've been supporting across our asset classes. Last KPI maybe on this slide, and an important one, is that we have EUR 5.8 billion of dry powder at the end of June 2022, which is down from the EUR 6.2 billion level at the end of December, but stable compared to end of March. Meaning that we've been raising capital, but we've also been able to deploy capital selectively, and once again, without compromising on asset quality. This dry powder will allow our funds to seize opportunity that will arise in the current context.
No doubt that we will see dislocations in the market and view our strategies as very well positioned in the current space, as I said before, be it in private debt or private equity or obviously with our special opportunity funds. Moving on now to slide nine on realization, which are another interesting part of our model as well, since it shows our capacity to exit some investments and crystallize value for our clients. First, a preliminary comment on that. As you know, most of our closed-end strategies are rather young and still in their investment phase. Second, our closed-end funds have long durations, so we're currently happy to hold on to these assets. We're not forced seller of anything, so we're delivering performance when we can exit. We can exit assets in good conditions, but we're also happy to hold on to assets for longer if necessary.
Third, we're very cautious in the way we book carried interest in our P&L. There is no carried interest accrual, so we do not rely on short-term realizations to grow our profits. In private debt, obviously this is where the realization flow is probably the largest, accounting for 52% of realizations in the first half, followed by real assets, and private equity, and tactical strategies. A word on private equity. We've been delivering strong performance for investors in this asset class, and we have started to divest in good conditions. Typically, with the exit of our investment in Assiteca in Italy, which we already announced, and it generated a 2.6x multiple and a 45% IRR.
I'm happy to share with you may have picked up over the news flow of the day, that we just signed two additional exits by our energy transition fund in July 2022, with a partial disposal of our stake in GreenYellow, a leading French developer of smart energy solutions, which crystallized a 1.9x multiple and 18% IRR to date. We will be partly reinvesting the company to support the shareholder recomposition alongside our friends at Ardian. We also signed an agreement for the disposal of our stake in Groupe Hellio, which specialize in energy efficiencies of building, and this investment generated a 1.9x multiple and an IRR of around 25%.
In our real asset division, our infrastructure business in the U.S. disposed another asset from fund one with a 2.8x exit multiple and a 22% IRR for our LPs, our limited partners or investors. Finally, in February 2022, our special opportunities fund divested a real estate credit investment in the U.K., generating a 1.2x multiple on invested capital, MOIC, and 17% IRR. As you can see, even though we do not have a huge realization flow given where we are in our fund cycles, yet we are able to generate strong performance on exited transactions. Moving on now to slide 10. We think it is important, it's an important one to give you an idea of the granularity and the resilience of our AUM and our exposure across asset classes.
Needless to say that we had many questions on the back of the past few weeks, you know, the past few months and the macro situation. We wanted to pause here and and walk you through, you know, this granularity. As you can see from this slide, the top 15 sectors across our assets under management are accounting for 42% of AUM. We are talking about a very granular and well-diversified exposure. As you can see, you don't have any single sector accounting for more than 6% of the total. When it comes to real estate, which accounts for around a third of our AUM, well, as you can see on the right part of the slide, two things. First, Sofidy's exposure is very granular, with more than 4,500 assets owned through a very small-scale granular approach.
Second, across the board, we also have very high-quality tenants. We listed here our top tenants at group level, and that's very important because we only want to do business with high-quality partners, whatever the asset class. With that, you know, we are able to generate consistent and sustainable performance. I also want to remind you that we're investing our own capital within our fund, and that is prompting for an extra layer of caution when we are deploying capital across our funds. Moving on now to slide number 11, to give you more proof points on the discipline and selectivity I was referring to.
Basically, in private debt, we try to emphasize a very important KPI, which is the leverage of the companies we are financing across our direct lending funds. We're standing today at 4.4 x leverage, which is, you know, the ratio of debt to EBITDA, which is down basically compared to the previous vintage, which was closer to 4.7 x. There again, you know, strong discipline in asset selection despite maybe a more complex market. We at Tikehau managed to actually reinforce the downside protection on this financing. Second thing is that we are exposed at 82% to first lien debt instruments, the highest quality, you know, senior section of the capital structure. Third element is that we have computed stable valuation across our funds compared to the end of December 2021.
Strong resilience and caution when we are deploying in private debt. In real assets, a couple of stats as well to illustrate the selectivity. First, starting with rent collection rate in the first half of 2022, obviously, you know, which stands above 95%. It has been consistently maintained above 90% even during the COVID crisis. The occupancy rate is still very high at more than 80% in H1 of 2022. And finally, the asset appreciation across our funds stands at mid-single digits over the first six months of the year. Here again, resilient valuation and rent collection. In private equity, we wanted to provide you a couple of stats when it comes to portfolio companies across our energy transition or growth equity strategies.
Over the last 12 months, they grew their revenue by more than 50% and multiplied their EBITDA by more than 1.4 x. On top of that, we have seen appreciation by mid-single digits year- to- date in these strategies. Finally, a comment on our special opportunities fund. We have a similar mindset and discipline as evidenced typically by the level of secured investment and the high selectivity rate, which is in line with the group's average. Here again, what you need to remember from this slide is that with discipline when it comes to deploying capital, we are selecting high quality assets, positions on strong megatrends, and that translates into robust valuation across funds and performance generations for clients. Moving on to slide 12.
I was just talking about clients, and all that I just described is strongly supportive of our fundraising initiatives. If we are able to increase our fundraising pace and to keep a very strong level of client demand, it is because we're generating performance, and it is because we have the capacity to remain selective even at the platform expense. In H1 2022, we raised EUR 3.2 billion for our funds, and that is a 36% increase compared to last year. Maybe a word about the cons here. You know, in H1 2021, I mean, last year, our capital market strategies raised around EUR 400 million, whereas in the first half of 2022, they experienced outflows of EUR 256 million.
At the end of the day, net new money coming from our private market strategy, specifically amounted to EUR 3.5 billion in H1 2022, compared to EUR 2 billion in H1 last year, which is a significant 77% step-up year-on-year. That has been driven by private debt, obviously with our flagship fund, TDL V. I'm happy to announce tonight that we have finalized the fundraising for that strategy for a total of EUR 3.3 billion of commitment, which is an impressive 57% uplift compared to the previous vintage. This demonstrate the quality of our teams and the recognition of our expertise in private debt. Let me also add that TDL V received very strong support from high quality institutional investors globally with more than 35% of commitments received from LPs based outside Europe.
In addition, TDL V has attracted capital from LPs which were already present in the previous vintage and which increased the commitments by close to 60% in these strategies, which is a huge success. Also, real assets. They're contributing significantly with EUR 1.4 billion raised, on the one hand from Sofidy, and on the other hand, through our European value add platform, which attracted close to EUR 600 million of commitments within an evergreen mandate and the first successes of TREO II, our second vintage of Tikehau Real Estate Opportunity. Finally, fundraising for private equity was driven by the first closing of our Green Assets strategy for close to EUR 100 million and co-investment for our energy transition and growth equity strategies. All in all, it's a very strong fundraising momentum that is experienced across the board.
Now a quick word on our client base on slide 13 to illustrate a couple of things. First, the diversity in terms of geography, and second, the diversity in terms of client type and how our client base is evolving. On the left part of this slide, we wanted to show you that international investors today account for 38% of our client base. That's around EUR 13.4 billion, and that's a 32% increase compared to H1 2021 a year ago. We've been expanding the platform. We opened Israel in Tel Aviv earlier in 2022. We opened Frankfurt last year, and we've already recorded fundraising successes in those regions. We'll keep expanding our platform in the future.
An important stat as well for H1 2022 is that 55% of third-party client commitments came from international investors. This is clearly validating our development model abroad and the scaling of the platform. On the right part of the slide, another angle to look at the client base is how private clients are growing within our AUM. They account for 21% of our AUM at end of June, and for more than 25% of the net new money over the first half, in particular, thanks to our dedicated real estate and unique link private debt solutions. I'm now on slide 14. An important feature of 2022, and which is at the heart of our growth strategy, is the expansion of our impact platform.
We talked about that during our capital market day in London, and our Deputy CEO, Cécile Cabanis, delivered strong messages around that. We've been pioneers in the private equity space, launching the first European energy transition strategy back in 2018. By the way, it is not on this side, but I remind you that we are already invested in energy transition since 2011, with several investments from the balance sheet, like for example, Aéro. Since then, we have studied how we could expand our impact platform across asset classes, and that through both our climate impact center, but also other sustainability themes strategies. You can see here, we've been massively expanding the range of strategies that are dedicated to climate, biodiversity, and sustainability. For example, typically the Tikehau Real Estate Opportunity Fund II, you know, TREO II.
This strategy is transitioning to an impact strategy, so we have the capacity to also convert existing strategy to impact dedicated strategy on top of our flagship impact fund. We also announced new innovative strategies like the Regenerative Agriculture Fund, launched in partnership with AXA and Unilever, or the Decarbonization Fund, you know, with TotalEnergies in North America. Finally, on slide 15, a word on the recognition of our sustainability strategy. First, with a very strong rating for Tikehau Capital, assigned by Sustainalytics of 12.0, which positions the company in the top 1% of its peer group. Also, we've been recognized as responsible lender of the year by Private Debt Investor. We are not implementing an impact strategy or launching, you know, impact dedicated funds just to get awards and ratings.
We understand that they can be useful to help investors better understanding and validating the relevance of our initiatives and all the efforts that we are putting here. Moving on now to our investment portfolio. I'm now on slide 17. First, starting with the way the portfolio has been evolving over the first six months of the year. Our balance sheet investment portfolio reached EUR 3.5 billion at the end of June 2022. This compares to EUR 2.7 billion at the end of December. Over the first six months of the year, we have been investing in priority in our own strategies, investing around EUR 900 million in and alongside our funds.
Around a third of that amount is linked to the acquisition of an LP interest from a leading Asian financial institution in a direct lending fund managed by a leading U.S. alternative manager, alongside our credit secondary strategy. Let me add that we are currently in the process of bringing in, you know, some co-investors on this position, and it illustrates perfectly how we can use our balance sheet to seize value-creating opportunities, create a home for a good investment before onboarding third parties, LPs in these strategies. Typically here, through this specific transaction, we've been doubling the assets under management for our private debt secondary strategy. Back to the slide, we have realized around EUR 200 million of realizations, including returns of capital.
We have had positive changes in fair value for around EUR 140 million , and positive Forex impact for an extra 56 million euros linked to the euro-dollar exchange, and Henri will get back to that in the financial review. At the end of June, as I said, EUR 3.5 billion of investment portfolios, and 80% of that amount is invested within our own strategies, and 20% in the ecosystem and direct investments. Maybe focusing now on slide 18 on the specific composition of our portfolio on slide 20-21. As I said, 80%, so EUR 2.8 billion of the portfolio is invested within our own strategies. That includes mainly the investment within our funds, which are in fact pretty well balanced between our private market strategies.
Roughly a third in private debt, around 25% in real estate, another 25% in private equity. On top of the capital we invest into our own funds, we're also sometimes co-investing alongside them. We've been also sponsoring three SPACs. One of them, which has successfully completed its first business combination last month. A very strong portfolio, a diversified exposure, and Henri will walk you through the revenues that this portfolio has been generating in H1, and which are very robust. With that in mind, I will now leave the floor to Henri for the financial review of the first half. Henri, the floor is yours.
Well, thank you, Mathieu. Good evening, everyone, and thanks for attending our call tonight. Let me start maybe by a quick word on our fee-paying AUM. I'm actually page 20, which is, as you know, a key metric to actually consider when it comes to revenue generation for our asset management business. Fee paying AUM have increased by 25% year-over-year, reaching EUR 30.5 billion at end of June 2022. This solid growth has actually been driven by very robust inflows recorded over the first half, combined with a sustained pace of deployment across our strategy, notably on private debt strategies, for which, as you know, management fees are actually charged on invested capital.
It is actually worth noting that our fee- paying base has been growing faster than the overall asset management AUM since 2019, generating a CAGR of 21% per annum over the period. At end of June, 86% of our asset management AUM are actually fee generating. If you focus more specifically on our closed-end strategies, 91% of AUM have duration of above three years, providing us actually a strong visibility on revenue generation, since actually our solutions are sticky with clients committed alongside us over the long term. Let's have a look now maybe our asset management revenues on slide 21. Management fees and other revenues have increased by 15% year-on-year, reaching EUR 139 million and representing 97% of our asset management revenue.
Maybe let me start by reminding you that in H1 2021, management fees benefited actually from the positive contribution of late management fees for our energy transition strategies, as well as arrangement fees for co-investments in our real assets business. In addition, the level of management fees generated over H1 this year reflects the outflows recorded for capital markets strategies mentioned by Mathieu previously, for which actually fees are charged on AUM. We grew management fees by 15% in spite, I would say, of this high comparable basis. Maybe a word on performance-related revenues. They actually contributed EUR 5 million to asset management revenues, driven mainly by the strong performance of both long-dated private equity and private debt funds, for which are gradually actually maturing, and as well, several UCITS funds which contributed during the semester.
Performance-related revenues still have a limited contribution to our asset management revenues, given the relative youth of our funds, as well as the cautious approach we have to recognize carried interest into our financial statement. Turning to page 22, for which we are showing you the evolution of our management fee rate since 2017. Once again, this chart is quite self-explanatory. The average management fee rate for the last 12 months, ending end of June, was maintained at high levels, standing at 103 basis points. This actually reflects the positive evolution of the group business mix towards private equity, real assets, which are charging management fees above the current group average, but also, you know, the favorable mix in private debt with more direct lending, specifically this year.
I would mention that maybe, you know, such evolution has also been driven by the fundraising momentum for Sofidy, with a growing contribution from subscription fees that are generated in line with Sofidy's fundraising. As a reminder, maybe the management fee rate for the fiscal year 2021 benefited from the positive contribution of late management fees linked to the closing of our private equity energy transition strategy, which took place, if you remember well, in Q1 last year. We are quite satisfied by the way our management fee rate is progressing, and not only we are increasing the fee paying nature of our AUM, but we are also compounding that with our capacity to maintain the average fee margin at high level, which is actually translating positively into our revenue generation. Moving into next slide, let's have a look at our fee-related earnings.
For the first half this year, we generated a FRE of EUR 40.7 million, representing a margin of 29.2%. The evolution of FRE mainly reflects the management fee growth that I just described minutes ago, which was actually partially offset in H1 by an increase in our operating costs. Let me here mention that staff costs are representing a bit more than two-thirds of our cost base, and this increase in operating costs is actually driven mainly by two effects. First one being a catch-up in terms of platform investment since H2 2021, following the hiring freeze and the postponement of several projects during the COVID pandemic. Second, during the first half this year, we've been reinforcing our impact platform and strengthening our overall asset management infrastructure to actually support notably the launch of growth initiative ahead of the cycle change.
Maybe one important point to mention here, as you can see on the chart on the right-hand side, is that the second half of 2021 already factored in the catch-up in platform investment. OpEx were actually up 7% in H1 this year compared to H2 last year. As a long-term asset manager and investor, we, you know, do not manage our business on a half-year basis. Our platform scalability will definitely continue to be a powerful driver for our growth going forward, and this is why we are still very confident on our capacity to actually deliver FRE margin in the mid-40s era by 2026. Yet as well, I think you need to keep in mind that we tend to hire ahead, you know, to support our long-term growth ambition while remaining very selective in any hiring decisions.
We now operate with a strengthened platform, which actually allows us to navigate the current context with confidence and seize attractive investment opportunities. Maybe turning to our performance-related earnings potential on page 24. Let me remind you that actually performance fees and carried interest are representing in our business model, you know, a key earning generation engine for Tikehau Capital in the coming years. As you can see here, AUM eligible to carried interest keeps growing at a high pace, reaching actually EUR 15.8 billion at end of June 2022, and showing 26% year-on-year increase, and therefore, you know, growing faster than our asset management AUM, which means that we are, actually raising capital in priority into strategies eligible to carried interest, which is set to become a strong revenue and profit engine once again.
One important point to mention on the total AUM eligible to carried interest, EUR 12.2 billion were actually invested, and EUR 7.1 billion generated IRR above their hurdle rate, and that figure is actually up 82%, versus a year ago. As I mentioned earlier, I would remind you that our revenue generation in asset management is today more geared towards management fees. Given that our large funds are still young, we are expecting to start, you know, generating more material performance-related revenues when our first flagship fund will actually mature. Also keep in mind that we've been pretty cautious. We've been adopting a pretty cautious approach when it comes to recognizing performance fees. We only book them when we are certain that we are actually going to realize them.
As such, we are not exposed, you know, to any drawback risk or negative performance fees into our P&L. Finally, I would like to mention, but I think I already highlighted this before, that we have a very much shareholder-friendly approach in terms of allocation of carry and performance fees. 100% of performance fees and 52% of carry interest are actually allocated to the listed company for the shareholder. Maybe moving now into our portfolio performance on page 25. As you can see here, our investment portfolio delivered robust performance over the first half, generating actually EUR 275 million of revenues, representing a 9% growth year-over-year.
This growth has actually been achieved despite the significant change in our portfolio and with the disposal of some of our listed investments, which generated more than EUR 100 million of revenue last year. As you can see here on the slide in dark green, Tikehau Capital asset management strategies, including Tikehau funds, co-investment alongside of strategies and SPAC sponsoring, actually contributed EUR 132 million to H1 2022 portfolio revenues, representing actually 48% of the total, and which is actually a 77% growth compared to last year. This revenue stream will actually continue to grow as the group's balance sheet invest in our own asset management strategy.
In addition to that, as you can see on the slide, you know, ecosystem and direct investment generated EUR 144 million of revenues, reflecting, in particular, the positive fair value change for our co-investment in Univision, which is actually the largest Spanish language media company in the United States. Following the merger with Televisa that took place, the Mexican TV giant. We actually made this co-investment alongside ForgeLight, which is an investment company focused on the media and consumer technology sector, which was founded by Wade Davis, which was most recently the CFO of Viacom. Finally, H1 2022 portfolio revenues included EUR 56 million of positive Forex effect due to the appreciation of the US dollar against euro, which I will comment in a second.
We are now page 26, and as you can see here, the unrealized revenues amounted to EUR 196 million over the first half this year, representing the bulk of our portfolio revenue generation. This amount actually reflects three main elements to be considered. First one, the positive mark to market in our own strategies, given the strong performance of our funds, notably, described by Mathieu previously. Second, the positive fair value changes of our ecosystem investment, including our co-investment, I just mentioned a minute ago in Univision. Third point to be mentioned, the positive Forex impact linked to the appreciation of the US dollar against the euro.
As for realized revenue, they remain stable over the semester with the contribution of Tikehau funds, which was up 20% year-over-year, and they were mainly driven, you know, by the continued increase of dividend, coupon and distribution. We highlighted, as well on the top of the chart, actually the level of return generated by our own portfolio, which is calculated by dividing annualized revenue by the average portfolio fair value between end 2021 and end of June 2022. As such, at end of June 2022, portfolio gross return amounted to 80%, which was actually a level stable, compared to H1 last year. Maybe let's wrap up by looking at our profit and loss for the first half of this year. Page 27. The main takeaways are actually the following.
Overall, a stable level of asset management EBIT, despite high level of comparison for H1 2021, and despite the catch-up and acceleration in platform investment to support our long-term growth. A resilient investment portfolio generating an 18% gross return. To be mentioned, group operating expenses increasing in H1, in particular, due to a number of one-off expenses linked to the acceleration of the group brand-building efforts globally. Financial interest reaching a profit of EUR 9 million, mainly due to positive changes in swap fair value, which were partially offset by higher financial interest linked to the U.S. private placement, which we completed this year in February 2022. Non-recurring items, which had a positive impact of EUR 20 million, including notably some positive euro-dollar additional Forex effects.
Finally, a net result, Group share, which has reached EUR 277 million compared to EUR 176 million last year, representing actually a 58% increase year-over-year. Well, before handing over to Mathieu, maybe moving to page 28, and let me mention the key figures of our robust balance sheet. Our model is supported by a strong financial means with EUR 3.1 billion of equity and short-term financial resources of EUR 1.2 billion, of which around EUR 450 million of cash. The evolution of the level of cash compared to end 2021 reflects actually the investments carried out over the period, as well as the payment of our dividend of EUR 1 per share.
We also benefit from an undrawn RCF, which has increased over the period to EUR 800 billion in March 2022, and we have as well an extended maturity to July 2027. As you may have seen as well, important point to be mentioned is that we have been assigned an investment-grade credit rating by S&P BBB-, with a stable outlook, confirming once again the strength of our business model and our financial structure. In addition, Fitch Ratings has reaffirmed our investment-grade rating earlier this year. Finally, as you know, sustainability is at the heart of our DNA, whether in terms of investment, as previously mentioned by Mathieu, but also at the level of group financing.
As such, following the issuance of our inaugural sustainable bond in March 2021 and the pricing of our inaugural sustainable USPP earlier this year, ESG-linked debt accounts now for 65% of our total debt, compared to actually a level of 0% at end of December 2022. Maybe Mathieu, back to you for concluding remarks.
Thank you. Thanks, Henri. I think that we had the opportunity with many of you to discuss over the past few weeks, if not months, you know, our positioning and the way Tikehau and our partners were looking you know at the whole situation. I mean, needless to say, we've entered you know a new cycle and happy to address some of that you know during the Q&A. We couldn't be better positioned to effectively tackle and face this new cycle that for many of us and certainly you know many market participants has been unseen in terms of this rising interest rates you know and the inflation that we are operating with now.
Before jumping into the Q&A session, let me address on page, on slide 30 a couple of points, in terms of outlook with our perception of the market currently and how we're going to navigate the current cycle. First, as I said in my introduction, we think that investor allocation remains well-oriented. The structural tailwinds supporting the long-term growth of our industry are still very much there, such as demographic growth, and investor need for excess return to serve the long-term liabilities. LPs have not yet reached their allocation targets. We are definitely benefiting from those secular long-term trends and the capacity that private markets have to generate overperformance and sustainable returns is absolutely critical when it comes to drive, you know, future claim demand.
Second, we've been repeating that over time, is that we have built at Tikehau Capital a resilient setup in order to navigate rough economic conditions. For some time now, we've been talking about this excess in leverage in the system. We've been talking about, you know, our disciplined approach in response to that. We've been talking about how we wanted to stay away from unreasonable valuation or just, you know, following trends, and how we are willing to operate with a strong and liquid balance sheet. I think that Henri reinforced, you know, this point, and I would like, you know, all of you to keep that in mind. We think that this setup in the current context is critical.
In addition to that, I would add that we're positioned on a variety of asset classes that offer compelling risk returns for LPs, and especially in the current rising rate environment. Direct lending with floating rate instruments, real assets with rent or, you know, concessions indexed on inflation, strong megatrends in private equity, U.S. mid-market infrastructure, et cetera. So that's and all that, you know, again, let me re-insist on that, with very limited leverage across the board. So we are entering H2 2022 with a reinforced platform. We invest in the platform, as Henry said, I mean, we've developed our staff. Our staff, we launched some growth initiatives and adjacencies that require additional staffing and support. That's important in our view to do that as the cycle turns.
I mean, the markets, you know, our industry are going to enter an era of turbulence, you know, I just, you know, alluded to that. To capture this dislocation and to seize these opportunities, we felt that it was the right moment to accelerate platform investments. For those of you who've been, you know, following us, you know, for some time now, I think you will give us credit that we've never been as good as navigating adverse cycle and moments. I can think of 2009, of 2012, obviously 2016, more recently, you know, with the COVID that we all got dragged into. You know, I think that this environment will be much more discriminating, you know, for investors, for asset managers. That's what, you know, LPs and investors will be rewarding.
Once again, you know, we believe that skin in the game, alignment of interest will discriminate the performance. To wrap up, you know, slide 31st. Of course, we are confirming our 2026 targets. There is no doubt about that. Let me remind you that we are targeting over EUR 250 million of FRE by 2026, and an FRE margin in the mid-40s region. We are also targeting mid-teens return on equity driven by both our asset management and our compounding balance sheet. This first half is another evidence to the benefits of this dual model. Finally, obviously, the capacity to keep scaling our strategies and more than double our AUM. I think, you know, we're very well positioned, you know, to deliver that.
Let me thank, you know, all our team and all our colleagues, partners who've been, you know, weathering these fairly adverse past few months. With that, you know, we're opening the floor to questions. Operator, please open the floor. Thank you.
Thank you. If you would like to ask a question, please press star one on your telephone keypad. Please ensure your line is unmuted locally, as you will be advised when to ask your question. Once again, that's star one if you would like to ask a question. The first question comes from the line of Nicholas Herman from Citi. Please go ahead.
Good evening, and thank you for taking my questions. Two for me, please. Or rather three things. Just firstly, on the debt and credit. Can I just ask if there have been any changes to what effectively you're assuming in terms of CLO and lending default rates going forward? And if there have been any changes there. And as part of that as well, could you just remind us, please, on the direct lending side, what the kind of the portfolio company average interest hedge duration is, please? That would be the first bucket.
On fundraising, I hear what you're saying about no change to investor preferences and long-term allocations, but we have seen some institutional investors slow their allocations. Could you just talk about it? I'm trying to marry those two. Similarly, should we be thinking also about fundraising being more front-loaded this year given the close of TDL V? Then finally, just on the cost side. Look, I totally agree with you, and I understand like this is this could be the right moment to invest. I guess the obvious question is then are there still significant more investments to come this year? Thank you.
Thanks, Nicholas. Maybe I'll start, and please, Henri, Louis, please jump in. On the credit default rate assumptions, I mean, maybe two points on your question. I mean, if we're looking at the leveraged loan market and the way we're addressing that, either through, you know, our unlevered leveraged loan funds or through the CLO, effectively, we've been, you know, stressing our own underlying assumptions. I mean, you know, I mean constant default rates, sorry. Clearly, we are stressing our own base case. Remember that we tend to be a principal investors in our own strategy. We just closed our second CLO in the US last week in a fairly adverse, you know, market.
We are in the market now with our CLO number seven. We're stressing these assumptions once again, not to squeeze the extra return, you know, on the equity. We tend to be the main, you know, equity holder and, you know, our targeted return is what I just reiterated, you know, some mid-teen returns. We wanna have a very conservative underwriting approach. I mean, we're not buying the market. You know how the CLO market is structured. It's easy, you know, to just be gobbling up whatever comes out of the investment banks. We're extremely selective. We have an in-house, you know, credit committee that where we share all these.
We share all views both in London, you know, and New York, but we've been stressing that effectively internally more to a 4%-5%, but which is our underwriting, you know, case. It's certainly not, you know, our view of the world. That's for the leveraged loan market, obviously the market has been a little bit congested lately, which is actually a very good timing to ramp up and take advantage of a significantly discounted, you know, loans in the market. On the direct lending, obviously it's really different.
I think we highlighted in the slideshow the fact that the current portfolio that we are managing today in direct lending is actually on the return at a lower average net debt to EBITDA ratio of 4.4 than we had, you know, in the previous year, which was more like 4.7. That's an evidence, you know, that's a KPI because obviously our portfolios are extremely granular and any credit is specific. But it's a good illustration of the approach we are taking on the direct lending. We've been having many discussions with our direct lending team, you know, starting a few months ago when the public market started to trade down.
Clearly we couldn't be in a position unlike some of our competitors to effectively publicly traded public markets, you know, we're trading at. That's where, you know, special ops funds have been effectively stepping in and increasing the investment pace. As the inventory cleans up, we see a more healthy environment for effectively direct lending, you know, to generate attractive returns on this new vintage. That's why, you know, as I mentioned, we're very happy to announce the final close of this strategy at EUR 3.3 billion, you know, tonight. That is effectively dry powder that we have to start investing in what is, you know, a new cycle. The last question about the fundraising.
I mean, you mentioned effectively we are closing, you know, the today, I mean, actually, or announcing of the close of the strategy of direct lending. We keep raising some dedicated SMAs, you know, some dedicated funds for some investors. We're constantly in the market, you know, discussing with investors for this strategy. What we've been, you know, saying lately is that people are readjusting their risk target returns. If I'm sketching a bit, you know, the people who are navigating the tech venture world, you know, hoping to make 10x in a year, today are effectively asking us to deliver 10% for the next 10 years.
That's where, you know, TKO is ideally positioned with the platform to be this gateway into yield products, regardless, you know, of the cycle. We're not here to time the market. We're here to invest across cycles. And I will, you know, leave you with our special opportunity strategy, which obviously is key and core to the TKO platform and DNA. We're right now in the market with the strategy, with the fund, you know, number three. Needless to say that there is a very significant appetite and interest for investors to be able to take advantage of this cycle.
Maybe one last point, maybe as far as your question on cost is concerned, and maybe more specifically, you know, on QBD earnings. As I mentioned previously, we have effectively invested into the platform, notably on the second half of 2021. As far as the full year expectation are concerned, you know, I think we will. The target that we had set, which is an FRE over EUR 100 million for the year, is still valid and we are confident with this target.
Thank you. That's really helpful. Apologies, the line cuts out on my end. Did you just sort of guide to the portfolio company average interest rate hedge? Sorry, interest or loan hedge duration please? I apologize, missed.
We'll come back to the.
No, I was about to say, on the loan side, obviously, you know, we're an asset taker, so we're not in the discussion with the borrowers. On the direct lending side, you know, on the mid-market, I don't know if Henri you have this number handy, otherwise we'll get back to you.
We'll come back to you in a second with the duration of the instruments within our latest vintage.
Perfect. Thank you.
Next question comes from the line of Tom Mills from Jefferies. Please go ahead.
Hi, good evening, guys. I just had a couple of questions, please. Also touching on the kind of fundraising outlook. Could you just give us an idea of maybe what's in the pipeline in terms of new product launches in the second half of the year? Just to get an idea of that. Can you give us an idea how much of TDL V is already included in the 13th of June AUM, and how much to follow? Finally, just on, you know, fund performance or portfolio performance within the direct lending strategy, I think Ares was saying earlier that their European direct lending performance was up 2.6% in terms of gross return in the quarter and up 11% over the last 12 months.
I mean, are those kind of figures that you'd recognize as being relatively similar for your own strategies, or better or worse? Can you give us some idea how you're tracking versus that? Thanks very much.
Sure. Tom, maybe I'll start and please, Henri, you know, jump in. Thanks, Tom, for the question. First of all, the direct lending, you know, you're picking up on Ares.
I would stress that maybe unlike, you know, some of these competitors, we're not positioned exactly, you know, the same part of the market. As you've seen, you know, those competitors have been stepping in to effectively clean up part of the public market inventories in the past few weeks or months, you know, we're effectively struggling when our investment landscape remains in European mid-market. Maybe the segment of the market is slightly different. We can, you know, come back to that. If you give the numbers, you're giving the compounding of the underlying coupon, you know, quarter-o n- quarter. If you annualize that, you have to adjust for leverage, you know, that's probably what I would flag.
I don't need these returns or reporting on a levered or unlevered basis. As you know, at Tikehau, we have very limited embedded leverage in the various funds. Any performance we're reporting is net of this leverage. On the fundraising and the pipeline. I will let maybe Henri, you have the answer of how much TDL V makes up at the end of June 30th. I will let you comment in a minute. On the fundraising in the pipeline, Tom, effectively, if you go through the various strategies, on the private credits taken as a whole, obviously the flagship TDL's fund, you know, is closing here.
As I said, there are many side vehicles that we are constantly discussing. I mean, special ops is the second big leg of H2. You know, what we call special ops at Tikehau is by no means distressed. It's very much bespoke, direct—you know, direct downside protected, contractually high return, you know, type of financing that we can do both on the public and the private market. That's one coming. We were talking about leveraged loans. Obviously, our CLO platform keeps issuing, and that's one thing where we have allocated more resources, something that we can scale significantly.
A general comment I would make is, as you've been witnessing over the past, let's say five years, you know, since we went public, we're constantly looking for adjacencies which are hopefully the next big mega trend. Project new proposals for investors, then the key is to scale up. What we've just demonstrated, to come back to TDLs, for example, which as you may remember, our first vintage go back to 2008, so you know, 14 years, is exactly that. Is to come up with this adjacency that we can then scale up and be full steam contributor to the overall P&L of the group.
If you get into real estate and infrastructure, as we mentioned, you know, we're coming now, you know, with a second vintage of Tikehau Real Estate Opportunity Fund. That's one you're gonna see, you know, for the second house as well. We close on the fund number two of the infrastructure fund in the U.S. And on the private equity, which is the most recent quote-unquote strategy of the overall platform. But that is running probably the fastest now. Not only, you know, we're still, you know, I think, you know, paving the way and showing, you know, keeping the lead in this mega trend such as the energy transition. We discussed that.
Regenerative agro is another one that we announced a couple of weeks ago. All those strategies, you know, will be critical not only in the next year.
Well, Tom, maybe to come back to your question effectively on TDL V. We're-
Coming back to the overall, you know, Tikehau platform being additional contributors to the overall profitability of the firm.
Sorry, Henry, you wanted to answer the June 13th on TDL?
Yeah, yeah. Correct. As far as Tom's question is concerned. We have an additional a little bit more than EUR 150 million that are not booked in our AUM at end of June, and that will be booked actually in July AUM. Maybe to come back as well on the previous question as far as the duration of the hedge of our portfolio company. Our portfolio company within our direct lending portfolio are actually hedged at an average duration of three years.
Can I just ask a quick follow-up on the CLO fundraise that you've got going on? Obviously you guys have been active, regularly active fundraising in that market. I guess there's been. You know, there's obviously a lot of press reports that the leveraged loan market is completely frozen up at the moment. If, you know, as you're raising these new funds, is it kind of product to put into them straight away of high quality? Or will you need to see that market kind of switch back on a bit before you get some more deal flow coming through? Thanks very much.
Sorry, Tom. You cut off on the second part of your question. I hope you can hear me all right. The comment I wanted to make on the CLO, which is a very scalable strategy, you know, for us, is the fact that over the years we've managed to, you know, with our equity investor approach, the fact that we are very much debt-friendly, you know, managers.
Despite, you know, the fairly adverse environment over the past, you know, few weeks, what we've managed to do both in the U.S., you know, on the recent pricing of our CLO number two and what we're trying to do, you know, in Europe right now, is to leverage, you know, this relationship, these institutional relationships, you know, when it comes to, let's say, you know, AAA placement has been, you know, one of the challenging parts, you know, of the cap stack recently. We've managed, you know, to effectively leverage the whole platform institutional relationship so that we're no longer, you know, a price taker and an asset gatherer, but we're very much in partnership in the management. We're doing both for debt investors and for the equity investors.
That's one thing that, you know, despite the relatively, you know, more modest, or management fee contribution, I should say, you know to the CLO platform, on an operating margin basis, we've got a very nice runway here because of the operating leverage of the product and where we're trying to effectively dedicate the whole secure platform to maximize, you know, pricing and fundraising despite adverse conditions.
Okay. That's helpful. Thanks, Mathieu and Henri as well. Thank you.
Next question comes from the line of Nicolas Payen from Kepler Cheuvreux. Please go ahead.
Yes. Good afternoon. Thanks for taking my question. I have two questions actually, please. The first one will be on the FRE margin and costs more in general. I can't help but notice that actually it's four semesters in which the FRE margin is decreasing. I completely hear you regarding the front-loading of investment. I wanted to know how much of front-loading you have made actually in this semesters, and how much was catch-up investments in order to get maybe a new run rate regarding your cost base in the asset management business. The second question would be on your performance in your investment portfolio, which for me was actually much more than resilience, was actually very good.
How much of this was due to TelevisaUnivision, maybe to give us a more precise view and a granular view on the performance? Thank you.
Thanks. Well, not sure to fully be in line on your comments on the decrease of fourth quarter in the FRE margin, because I think we've had increase on second semester last year. Once again, here, effectively, we had a catch-up during the first semester as far as the operating expenses are concerned. As far as full year FRE expectations are concerned, once again, I should repeat that, you know, we had a guidance for the year 2022 in terms of FRE, which was to achieve a number above EUR 100 million. This guidance is still actually alive, and we are confident that we can achieve that guidance for the full year 2022.
Now, your question on the revenue is how much was the impact of Univision, correct?
Yes. Correct.
The impact of Univision within the portfolio revenue is actually EUR 72 million within our portfolio revenue during the first semester.
Very useful. Thank you.
The next question comes from the line of Joren Van Aken from Degroof Petercam. Please go ahead.
Yes. Good evening, everyone. I had two questions, but the first one is already answered. The second one also just coming back to the FRE margin, that it's a bit lower because of investments, I understand. But should we then expect a nice improvement in, of the FRE margin into H2, let's say, to the level of 2021, or is that too fast? Thank you.
Look for that.
Clearly the path to the target that we reiterated of mid-40 by 2026, you know, is not linear, obviously, because it depends on the increase in fundraising and effectively the conversion into revenues. You know, a private equity fund pays on committed capital when direct lending fund, you know, pays, for example, invested capital. So you've got this kind of stairs effect toward this mid-40 target that we're reiterating. Effectively by not only front-loading all these expenses, we spent, you know, a fair bit of time on that. I reiterate the comments I made earlier on.
Not only are we gonna be, you know, much more selective on new investment, on new platform investment, on new hiring, but also, you know, a much more disciplined cost management, which obviously will be a drop-through onto the margin. Maybe, Henri, you want to add?
No further comment on that. I think we mentioned in terms of FRE margin for the year 2022 expectation already on that.
Okay. Thanks. I'll just, if I may, you know, illustrate because, you know, you've got what are your expenses? You know, they're mainly effectively, you know, people, but then, you know, it's effectively the structure and the infrastructure. When we decided, you know, to go ahead and this year was about, you know, Israel and opening, you know, an office in Tel Aviv. Our two colleagues, you know, Rudy and Asaf, you know, who joined us, that was the blank page. You know, it's a blank page, it's an office. It's two people we've been knowing for some time. Fast-forward, you know, six months, that's probably one of the most promising, you know, launch, you know, we had in some years.
You've got some, you know, in terms of fundraising, you know, I'm talking, you know, in terms of fundraising in a new geography where we had a selected number of relationships. That, that's why I'm saying, you know, it's all that is not linear, but it's really about maximizing, you know, the platform and all that create, you know, drop-through on the operating margin, which remains, as I said, one of the key KPIs we are monitoring and giving you guidance on.
Let me remind as well on top of that H1 2021 actually benefited, you know, from more than EUR 4 million of capture fees on our energy transition fund and an additional EUR 2 million of fees on our real estate investment platform as well last year. One-off effect.
Thanks. Very clear.
The next question comes from the line of Christoph Greulich from Berenberg. Please go ahead.
Yes, good evening, and thanks a lot for taking my questions. Yeah, three from my side, if I may. Yeah, first, a follow-up on the fundraising, and apologies as I missed some of the previous answers. Just when I look back at the seasonality of your fundraising over recent years, it was typically skewed towards the second half. Given the strong performance in H1, is it reasonable to assume that the seasonality this year will look different to previous years? Then on the corporate cost, the group corporate cost, so they've gone up by about EUR 10 million compared to last year, H1. I think you mentioned there were a number of one-offs related to brand building.
Maybe if you could just provide a bit more color on what were these initiatives and is it fair to assume that we will go back to the level of previous year as of H2. Lastly, regarding the carried you mentioned during the presentation, and obviously there will be a step up in the current generation once the first flagship funds mature. Maybe if you could remind us which year we can expect that to happen. Thank you.
Thanks, Christoph. I may start you on your first question and let Henri comment on the carried or the PRE. The fundraising, as you know, and we discussed, you know, you and us, you know, at length, this is always dependent on the strategy, the vintage, but also the expansion of the platform and the investors we're talking to. I was giving this example about Israel, you know, that was an area where we had. It was about Germany, you know, we discussed that, and so on and so forth.
all this investment that we made, because needless to say that when you open an office, you have to pay your rent, you have to pay the salaries, and yet you don't have, you know, a single investor or euro of management fee or revenues. Then the operating leverage, you know, kicks in. We've got our core domestic markets defined as, you know, wider Europe. We have, you know, wider discussions in Asia. You know, we celebrated a few months ago, our fifth anniversary in Seoul, Korea, which have been a tremendous contributor, you know, to many of our private debt strategies. As you know, we're expanding in North America. We've been having a number of dialogue in some part of the globe where we're not present yet.
All these additional dialogues are paying off so that you're not saturating your LP base. You know, when I keep reading some of our competitors, mainly on the private equity, talking about the congestion of the fundraising environment, that's because effectively one given investor is being shown every day, every week, the same strategy by many managers they've been allocating to in the past. But if you're opening new relationships, if you're effectively convincing these new relationships of the TKO model, which is very singular, you know, and very particular, you know, in the skin in the game approach, then that bodes extremely well for, you know, a continued, you know, fundraising. The seasonality, you know, will certainly remain. Obviously, the past few weeks, you had a little bit of a pause moment because people were panicking.
You know, sometimes I'm a bit surprised to see people that surprised. You know, there's nothing that we could not have, you know, predicted in this rising interest rate environment. We feel very comfortable, you know, not only to confirm, you know, this target and outlook, but as you know as well, to do whatever it takes to outpace and outperform, you know, these targets.
Maybe one additional comment as well on that. I think that I hear your comment on fundraising H1 versus H2. I think it also depends as well, you know, on when we are closing the fundraising of the strategies and when we are launching a new strategy. For instance, this year, we actually completed, you know, during H1, the final close, including July of TSO V. We are launching, you know, some new flagship strategies. Mathieu mentioned TSO III or TREO II during H2. It also depends on that. I'm not sure that we can always, you know, replicate effectively seasonality from H1 to H2.
Christoph, as far as your question is concerned on corporate costs, effectively, you do have included in the figures for H1 approximately EUR 4-EUR5 million of one-off cost on communication and travel for this first semester. An additional communication effort that was carried out by the group, which are actually one-off effect. Maybe to come back as well on your last question on carried interest. Well, definitely no surprise on that. It will be linked, you know, to realization and notably on as far as private debt and real estate is concerned. We have as you can see the figures for the first semester with EUR 0.6 billion of realization.
Once we will be progressively exiting, notably on TDL III on our real estate mutual fund as well, we've started some exiting plans in the current context. As these exits, they'll materialize in 2023 and 2024, we will have carried interest generation coming into the system.
Oh, that's very clear. Maybe if I could just ask one more question with regard to the US dollar strength, because you mentioned the impact on your balance sheet portfolio. I was just wondering, given that you also have asset management activities in the U.S., was there meaningful impact from the US dollars on your management fees and the costs in asset management?
Well, it's not that significant as far as operating costs are. It has effectively an impact on our cost, but not that significant to be mentioned.
All clear then. Thank you.
If I can just add, Christoph, you know, one other milestone of the year was to start, you know, diversifying our funding sources. You may recall we issued our first long-dated U.S. private placement. We're also now diversifying our dollar funding, you know, through that route.
Next question comes from the line of Mandeep Jagpal from RBC Capital Markets. Please go ahead.
Good evening. Thank you for the presentation, and taking my questions. Two for me, please. The first is on TDL V. I think you said the fund size was around 60% larger than the previous vintage, and I was interested in whether there was any change in the strategy for this fund versus historically. For example, will the average ticket size remain the same, or will Tikehau now need to focus on more companies at the larger end of the mid-market category? The second question is on deployment. You said that you remain selective, but I'd be interested to know, how you've changed your thinking this year around which sectors are attractive or unattractive given the current landscape, in particular, given the ongoing energy crisis in Europe.
As a follow-on to that, I know you have granular exposure, but do you have any concerns for any of the current portfolio companies? Are there any actions that you can take to help them through any difficulties that they might have?
Thanks, Mandeep. I will start on the direct lending. The answer is no. No, we're not gonna be changing the strategy by moving up to larger company. I think I alluded to that earlier on. I mean, we're coming out of a very complacent public market environment. I will not come back to that. When I see private lenders competing shoulder to shoulder with public markets, which had been extremely complacent, my question has always been: Where do they have to compromise to be competitive, you know? So, you know, the price, the structure of the covenants was already extremely loose.
While, you know, on the contrary, you know, the mid-market, which is core to our development, which is where, you know, you're effectively financing, you know, the real economy, is where you can make a difference, not only by providing, you know, funding to some companies who would not access otherwise on the public market or on the broadly syndicated, you know, loan market, but also to investors, to our investors. We've got fiduciary duties, and we are, most of the time, the largest LP, as you know. Effectively a risk-adjusted return that generates a very nice, you know, arbitrage. There is no intention, you know, to move over the spectrum, you know, here.
I mean, very tactically or, you know, right now, because effectively there is a broken public market, if you'll allow me the expression. Obviously, we will take advantage of that through our Special Opportunities strategy. We don't want to lose track of what makes, you know, the Tikehau difference in providing this type of financing. You should see us extremely, you know, constant here, while being even more selective, as I said, you know, in deploying this additional dry powder. On the industry, I mean, in this slide we were showing you earlier, we've tried to be extremely granular to show effectively the very low dependence to any given sector or industry.
I mean, some of them are obviously, you know, megatrends that we keep on investing a lot into. We've been extremely averse toward the tech or, you know, even more so, venture play that had been, you know, very crowded places and that has been probably the most impacted by the recent downturn, you know, in the market. We keep on trying to identifying some mature company or some profitable company we need to scale, you know, again, with this filter of the trends we want to be exposed to.
You should not see us just to, you know, to run around like a headless chicken just to take advantage because there is one part of the market that is broken at any given point in time. You know, we try to stick to risk management. Risk management is the fact that we ourselves, you know, our first and foremost, you know, principle through our balance sheet, through the partners and the team, you know, capital, and that has, you know, proven. That's why, you know, hopefully, this set of results is illustrating, you know, this, you know, this approach. As far as concerns, you know, in the portfolio, we keep on having, you know, our portfolio review and evaluation, not only, you know, the investment team, but with the external auditors.
I would say, you know, it's business as usual in monitoring the operating metrics of these companies. What may have changed are effectively more, you know, the exit valuation or exit assumption that sometimes
A controlled buyout firms have been making in their, in their underwriting, but we're not that much into this, market. You know, obviously our private debt, our compounding strategies, so our, you know, our real assets, strategy through, you know, rent concessions, you know, coupons. Our private equity strategies are very much, you know, expansion capital where we provide, you know, growth capital to entrepreneurs to, scale and magnify the, you know, the solution they have to provide. This, environment in the country could be a great way for us to take advantage and consolidate. That's what we've been demonstrating through our, aerospace strategy, through, you know, Tikehau Ace Capital, extremely active in being, you know. Very much what we're trying to do.
Great. Thank you.
Next question comes from the line of Carlo Tommaselli from Société Générale. Please go ahead.
Yes. Good evening. Thanks for the presentation. I have three questions, please. The first one is on the asset class mix. In terms of value add AUM evolution, it was 22% at the end of 2021. Could you give some visibility on the current level? The second question is on the ESG compliant AUM. In the first half, in terms of Article 8 and Article 9 breakdown, can we have also the evolution compared to 2021? Final question is on the real asset margin, which posted the spike at 116 basis points. I hear you when you say that it was supported by fundraising momentum at Sofidy. I was wondering if there is any additional impact supporting it, and if the level is sustainable going forward. Thank you.
Well, thanks for your question. Maybe I will start by your second question while on ESG. As you know, we were at EUR 1.5 billion end of last year classified under this classification. We had targeted, you know, EUR 5 billion. At end of June, we are actually at EUR 2.1 billion as far as this KPI is related, so moving from EUR 1.5- 2.1. Well, then to come back on your third question on management fees, this is definitely, you know, the 103 basis points that we are achieving for this first semester is definitely, you know, the level that we can sustain.
We remind you that during the capital market day that took place in March, we said that our hypothesis for our plan 2025 2026 was to remain at such level. We had not anticipated in our guidance of FRE at EUR 250 million. We had not anticipated any increase in this level of management fee. When everything we see and notably as far as fundraising is concerned, and coming back to your question in terms of mix, and notably as far as all the. Your first question, but all the, you know, the flagship strategies that we are actually that could have fundraised during the coming quarters, would that be under real estate as far as our new value add fund is concerned? Would that be on our special ops fund?
All the other projects we are having, definitely we see a level of management fees, which is at least in line with the level we have achieved over the last quarter, semester and years. To come back precisely maybe to your first question as far as the percentage of AUM in value add, we currently stand at 25%, at end of June 2022.
Sorry, you said 25?
Yes. Yes. Correct. Yes.
25 from 22. Okay.
Yes.
Thank you.
Next question comes from the line of Nicolas Veisselier from BNP Paribas. Please go ahead.
Hi. Good evening, gentlemen. Thank you for taking my question. I'll have three quick questions on my side. Sorry for the first one to make you repeat. Actually, one of the questions of my colleague previously was one of mine, and the line has cut a bit, so I didn't hear your answer. On the real estate management fee margin, the step up we have seen to 116%, I was wondering if it's mainly due to the strong fundraising of Sofidy as well, or if it's something that can be maintained.
On the two other questions I had, should we expect the run rate of H1 cost at the operating cost at the management fee the management company level to be more or less what we are going to see in H2 2022? I appreciate that you have front loaded the cost and now you are going maybe to slow down on cost growth on that side. Yeah, would be helpful to know if that's more or less the run rate for the rest of the year.
Surely, I was curious to know as well on the fundraising for the remainder of the year. What are the next big events besides after the closing of TDL V? Sorry. Thank you very much.
Okay. Thanks. Well, coming back maybe to your first question, you know, as the level of management fees is concerned, for real estate. Several issues too, it has moved up effectively at 116 basis points for the last 12 months measurement. Several points to be mentioned. First, effectively, you do have the impact of the strong fundraising momentum at Sofidy, but I think actually this is a structural point. The way the level of management fees and subscription fees are actually set up at Sofidy. We've been benefiting strongly from that, and notably since 2018 and the acquisition. I remember that, AUM from Sofidy have moved from less than EUR 5 million to over EUR 7 million. So very strong, fundamentally good dynamics.
Maybe an additional point to be mentioned as well is as far as our new generation of value add fund we are launching. We are modifying the level of management fees, which was actually previously charged on invested capital, and that will be charged now on capital committed. This is actually an additional change we are implementing actually in our new strategy. Your question on OpEx run rate and so on. I think we've already answered to that question, but if I may come back maybe on few figures. Actually, you know, FRE for the year 2020 was standing at EUR 70 million, 35%. 2021, the FRE was sitting at EUR 94 million with a 36% margin.
We have increased for the year 2021, our FRE margin. As far as 2022 is concerned, we are expecting, you know, over EUR 100 million of FRE, and there we will have actually an improvement or a stable, at least FRE margin for the year 2022. You can effectively have a look at the semester, which actually does not make sense. You can see the evolution. Let me remind you a few figures, but FRE was actually EUR 15 million in 2019, 30% margin, then EUR 17 million in 2020 with 35%, EUR 94 million with 36% in 2021. Clearly the trajectory is set. We will be once again over EUR 100 million FRE for the year 2022, which was our previous guidance.
Our guidance is clear and confirmed for 2026, which is over EUR 250 million and mid-40s margin. That's where we are clearly going. To come back on your question on fundraising, maybe I can reiterate what we said earlier, but I mean, the fundraising pipeline for H2 will be quite different from H2 last year or even from H1 this year. You know, we've just finalized fifth vintage of our direct lending fund. We have now several flagship strategies that will actually raise with their successor fund. I can mention, you know, our real estate fund, TREO II, or our specialized fund, number three .
On top of that, you know, we have strategies that will finalize their fundraising. I mention that TPDS in the U.S., impact lending and Aéro Fund, which is still open actually till the end of the year. Then as we mentioned, third part, we will have adjacencies in line with our decarbonization strategy, which we launched in 2022. TKO Green Assets, North American Decarbonization and Regenerative Agriculture Fund.
All right. Thank you very much. If I may just ask an additional quick one. On the income component of your investment company revenues, so the interest and dividend income you receive every semester. Was curious to know if you could tell us where what the kind of yield you are achieving on average on your portfolio. Is it more closer to 5% or yeah what kind of guidance you can provide to us? Thank you very much.
Well, overall the revenues overall on the portfolio stands actually at 18% for the first semester.
Okay. Thank you very much.
Maybe do we have one last question before we end this call, please?
It's MICHALET from ODDO BHF. You are now unmuted. Please go ahead.
Hi, gentlemen. Thank you for the Q&A. Just one question on the liquidity of the stocks. You've continued to issue new shares, and you have extended your share buyback program.
Well, I think we've been cut. Geoffroy, are you still on the line, or? Can you hear?
I apologize for the disruption. There is currently a loss of connection to some of the host lines. Please stay connected while we rejoin. We have now reconnected the speaker line.
Thank you. Geoffroy, are you still on with your question, please? Okay, sorry about that. I think so we will now end the call. Thanks for participating today to this half year presentation. Happy to take any further question offline or by email, either with Louis, Mathieu or myself within the team members. Thanks for participating. Take care.
Thank you. Thank you all. Bye.
Thank you for joining today's call. You may now disconnect your line.