Ladies and gentlemen, welcome to the presentation of the half-year results of Tikehau Capital, in the presence of Antoine Flamarion, Co-founder of the group, and Henri Marcoux, Deputy CEO. You have the floor.
Thank you very much. Good morning, everyone, and welcome to this presentation of the H1 2020 results of Tikehau Capital. Let's start with the key figures of this half-year. As we told you at the end of July, we have EUR 25.7 billion in assets under management, up 9.8% over the last 12 months, stable compared to the end of 2019. In spite of an unprecedented context in terms of uncertainty, we raised EUR 1.1 billion for our asset management business over the six first months of the year, carried by the dynamic business of real assets and private equity.
Fee-paying assets under management are worth EUR 20.3 billion, up 17% over the last 12 months and up two percent with the half-year, mostly with strong ratings on private equity and real estate and deployments in private debt and real assets. The income from AUM is up at EUR 88.3 million, up 16% over the one year. The management fees, the average, is still up at 94 basis points compared to 84 basis point at end June 2019. Operating income for our asset management business, NOPAM, is up almost 40% at EUR 28.6 million, thanks to growth in our income combined with the strict control of operating costs, with a margin of 32.4% compared to a 27% one year earlier. As to our direct investment business, this was impacted by the volatile market in the half year.
Operating income is a loss of EUR 290.3 million because of adjustments in the fair value of some of our assets, especially those that are listed and costs related to those financial instruments that we introduced in the half year to manage our risk. The net income stands at minus €249.9 million, including financial income and taxes. The group has a differentiating asset, especially in the present context, which is a sound balance sheet. At end June 2020, we had €2.8 billion in equity and €900 million in cash, and EUR 500 million in undrawn credit lines. We have also cash in asset management.
A few days ago, our efforts were recognized by the ratings as one of the best asset management companies in a non-financial rating. We started the second half of the year dynamically, adding EUR 1.6 billion in assets under management in July alone, with certain key successes, which we will address later on. In particular, in a context of COVID, where, of course, business has deteriorated across the board. With that success and other initiatives that we will be starting in H2, our objective is to reach at least EUR 27.5 billion in assets under management at the end of the year. Sorry. We move on to slide seven. You can see here the development of our main numbers over the last 12 months. Assets under management are up 9.8% to EUR 25.7 billion, mostly with our AUM, our asset management business.
As we told you, the scope of asset management was below EUR 9 billion when we started off, EUR 8.6 billion. Fee-paying assets under management are up significantly at plus 16.7%. That is what will make a big difference in increasing our income in the years to come. You have to keep in mind that these fee-paying assets are mostly in closed-ended funds on long durations, which means that we have excellent visibility on future cash generation, that we will get into the details of that. For H1, we have a EUR 150 million mandate from Evergreen. That extends the duration of our funds and therefore of our revenue.
The key item I would like to emphasize at the bottom left corner on the slide is the growth in operating income in our asset management business, up 39.5% over the past 12 months, which confirms that our development strategy is profitable for the group. Finally, the net income attributable to the group stands at minus EUR 240 million. It reflects the complex market, the complex and volatile context that we had in H1, which has, of course, a negative impact on our direct investment business as well, at the cost of financial instruments used as part of our risk management instruments. We move on to slide eight, and on that slide, you can see how far we've come since the IPO. You have six indicators that we monitor, and we always look at them carefully.
Three years after the IPO, Tikehau Capital improved its profile on all its key figures. You can see that we have EUR 25.7 billion in assets under management, 2.6 x more than at the time of the IPO. You may remember that in our guidance during the IPO, we were hoping for EUR 20 billion only in 2020. International development has worked well for us because we multiplied by 3.7 the share of international investors that stand now at EUR 7.8 billion, and initially, we only had EUR 2 billion when we had the IPO. Our management fee rate is up 23 basis points since the end of 2016 at 94 basis points. This is important because in asset management, people believe that as a rule, management fees are low. In traditional asset management, this is true, but in alternative asset management, this is not the case.
What we've seen over the past three years, we have significantly increased that rate. Our Non-performing loans is up 39.5% over the past 12 months at EUR 28.6 million. You may remember that when we started off in 2016, it was only EUR 3.5 million. We have improved our infrastructure, and we have kept costs under control around the world. Although we had expanded our coverage, we have 570 people working in 11 offices around the world. Initially, we only had five offices at the time of the IPO. To sum up, we've made headway since the IPO. We are more dynamic. Our strategy is bearing fruit. We are delivering on our commitments, and we are doing everything to continue this momentum thanks to our very motivated teams, but also we have partners around the world. Let's move on to slide number nine.
As we like to say, we operate in what is known as a people business. Our main asset is our human capital. We keep beefing up our teams with people that are experts in each asset class in each territory. We pay great importance to diversification in terms of human capital. We have as many as 27 nationalities with an average experience of 14 years. What is unique in this industry, we keep lining up the interests of the various stakeholders with a capital with 44% held by Tikehau's management. This key component will guarantee selectivity and discipline in asset management. This trust has been proven by our clients and investors ever since we started off. We also have strong governance. Recently we were rewarded, as I just mentioned, by the extra financial rating agency, Vigeo.
We are one of the best companies in Europe in terms of governance in this industry. We have a supervisory board with 50% of the members independent, and we completed our platform with an international advisory board created in 2019, which brings together complementary and diversified profiles, which enables us to have an international network of experts. The regular exchanges that we have with IAB, International Advisory Board, during the lockdown has enabled us to monitor in real-time the developments of the COVID crisis and propose customized solutions to our customers and have adapted solutions for our own workers, our own people. We had two people from Singapore, two people from Japan. We had one Filipino, and the secretary of the group, Alaia. As we know that the COVID crisis started off in Asia, very early on, we had a good vision of what was going on.
We have to remain humble in this crisis, of course, but we had a good idea of what was going on, and that enabled us to remain very effective, keep our eyes on the ball, and that's why we were able to have a very good fundraising business in the first half year. We raised significant funds at a time where across the board, business was very, very slow indeed. Let's move on to slide number 10. In terms of ESG, Tikehau was a pioneer ever since its inception. We didn't emphasize this as much as other players in the field, but we were pioneers as asset managers and as investors. Our performance horizon is the long-term.
When we commit to generate sustainable performance, we cannot dissociate financial criteria from extra-financial criteria, and that is why the ESG issues are at the heart of our process and our fundamental analysis of 100% of our investment opportunities. Of course, we have an ESG team, but in each of our four business areas, each investor has to apply an ESG criteria. Whenever an investment application arrives, we look at these ESG criteria. As to the straight on the line, we have developed strategies with a positive impact on climate change. We are keeping on that track, and we have innovated. In fact, the energy transition business, we have a good example with Alex Premium in Singapore, where we were looking at the healthcare business.
This ESG approach was rewarded at mid-September by one of the main extra-financial rating agencies, which gave us a rate of 66 out of 100. Those familiar with that rating system know that this is an outstanding score, which shows our commitment to ESG. Also for the second year running, we got an A+ rating for the UN PRI for our strategy and governance module. In 2020, we were also ranked number two out of 246 asset management and asset depositories by the extra-financial agency, Sustainalytics. Very proud of our ESG approach, and we will continue to pursue efforts to generate sustainable and profitable growth. Of course, ESG is not something that we have to cope with. ESG is at the very heart of our drive, and we are actually being proactive. We generate positive investment.
It's not just a matter of having a sort of plain ESG performance. We want to have a positive performance. Slide number 11. To conclude on this first part, I would like to emphasize those four indicators that are our main commitments. Number one, EUR 35 billion. This is a total AUM by 2022. Profitability, operating profit should be above EUR 100 million, and that is what will make a determination of our market value. Looking at the multiples of other alternative asset management companies, when we introduced the company, when we had the IPO, we were standing at EUR 3.5 million in asset management in profits. We are reasserting this objective of above EUR 100 million by 2022. We are investing in our own funds. This is what we have, what is known as having skin in the game.
Not only that, it generates more finer granularity, because we have anywhere between 65% and 75% of our own funds invested by our own balance sheet, our own funds. We are looking at a return on capital of about 10% - 15%. Again, looking at the funds, our own funds invested by the group. Moving on to the following slide number 13. In operating terms, we have been proactive in all our business areas in private debt. In the absence of any flagship fundraising on H1, we focus mostly on our institutional customers and retail customers. We raised upwards of EUR 40 million as part of the second closing through the initiative, started with a private bank in Italy called Fideuram.
For those of you who remember, we had a partnership with Fideuram, which is a sort of fund of funds, a Tikehau fund of funds that is marketed in Fideuram private business. It's an Italian bank, we had already raised EUR 400 million at the end of 2019. The idea is to have retail investors. That trend is being confirmed, you will see that that also applies to private equity later on. Regarding real assets, at the beginning of 2020, we finalized the raising about this discretionary fund for our value-added strategy. That's the first such fund, EUR 560 million is pretty good for the first such fund. Sofidy, which is our management for investment and savings products, had a good performance.
We also beefed up our stake in IREIT Global, which is a listed company in Singapore, focusing on the European property business, mostly in Germany with the corporate and state clients. We increased our stake from 16.6% - 29.2%. We took advantage of the breakdown in the market in March to strengthen our stake. That was a good business because we got about SGD 49 per share. Now it's back up to SGD 70 per share. After the acquisition of Star America Infrastructure Partners, that was finalized in July, we decided to rename our asset class from real estate to real assets. Well, you have to recognize because we include infrastructure and property, this is a tricky business. The cost of infrastructure is high, so you have to be cautious, but each territory has its own momentum.
The American infrastructure market, for those of you familiar with it, especially small infrastructure, that business, that market is not doing very well. All the stimulus plans are there to help. We believe that we're in a good position to take advantage of the American aspect of infrastructure. Scaling up the private equity business has continued over the six first months of the year with sustained fundraising, especially with successful second-generation funds for special situations. Our PE fund for the energy transition continued its fundraising and is now eligible for the TEEC label, and that should enable us to raise even more funds, to collect even more funds. As I mentioned earlier on, we started in the spring, a long-term investment fund, on the ELTIF format with the Banca March in Spain.
It's a private bank that enabled us to collect as much as EUR 60 million, only in our energy transition fund. Two birds with one stone. A, we raise funds, but also, we speed up the private equity business. Our CMS, capital market strategy, that was particularly resilient in H1. I'll give you one example. As you know, we had five funds. The biggest fund was called TKS, had net positive collection of a few hundred million EUR, whereas it's mostly shares in it. Whereas the performance yesterday was -0.7%, that is negative, but compared to the other equity business, it's pretty good. Let's move on to slide 14. Group-wise, our assets under management stand at EUR 25.7 billion, up 10% since June 2019.
The asset management business itself has assets up more than 30% over the past 12 months at EUR 24 billion, which is unique in this business. It should be pointed out that we raised EUR 1.1 billion over the six first months of the year for the asset management business, and we have continued on that trend, and I should like to thank the Tikehau teams that were extremely motivated and very active, enabled us to achieve that extremely satisfactory performance. Let's move on to slide 15 on the granularity of fundraising. If you look at the two pie charts at the bottom of the slide, at the time of the IPO, we stood at EUR 8.6 billion on three business areas in asset management. Now we have EUR 24 billion, and we multiplied by 2.5 our collection in fundraising and asset management.
We have four business areas, and it should be pointed out that in H1, we collected mostly in real assets and private equity. We strengthened the diversification. We have a finer granularity, but that also meant that we were able to improve our income in terms of basis points. In terms of profitability, real assets and private equity enjoy good management fees. It should be also for growth to continue, it has to be profitable. As we improve the business mix in asset classes, this means that we can improve short-term profitability, but also long-term profitability. Let's move on to slide 16. What is true for our asset classes is also true in terms of customers and their psychologies and territories. At the end of June 2020, 32% of assets under management for that business are international investors, twice as many at the end 2015.
When you develop a company in various countries, well, you have to re-explain your brand, your know-how, your DNA every time. We have to say that we're pretty pleased with our international development. We have a number of achievements in Asia, in Europe now, but also the North American market is very promising indeed. After all, it is the largest such market, the U.S. and Canada, and a few successes also in Canada and in the U.S. already. Let's move on to slide number 17. For an alternative asset manager such as Tikehau, what is essential is to be able to, of course, to raise funds, but it is just as important to invest this capital properly, this funds properly, and deploy funds in a disciplined fashion.
At the end of June 2020, we deployed upwards of EUR 800 million within our closed-ended funds, which is significantly down compared with the H1 2019. We've mentioned this several times, we are very vigilant on these upside-down pyramids. You look at the number of deals on the table, those that we signed a letter of confidentiality, and the ones that we actually closed. We are very selective indeed, and this is why we have such robust performances across our funds, and we keep raising significant funds. That trend, if anything, has accelerated in H1, because of course, in the context of COVID, we had to be extremely cautious indeed, and we slowed down investment. All in all, we financed as many as 108 companies and/or assets. Private equity, private debt, and real assets. You have for 108 companies, we have a very fine granularity.
On slide 18, you have these upside-down pyramids. You start, you can see that screened as many as 177 deals in private debt and ended up with nine firm offers. In the end, we closed only eight deals. What you can see on this slide is that not only did we reduce the size of investments, the number, the size, but also were very selective. If you look at real estate now or real assets, we closed a large number of small operations with Sofidy, and there were no real estate investment in H1, and the amount invested in real assets stands about EUR 115 million, which is rather modest in view of how much dry powder we have in real estate. There were effects of COVID in real estate. We had to be careful.
It's too early days to know exactly what the effects will be, and we'll be able to address this during the Q&A. Let's move on to slide number 19 and look at private debt. H1 was rather untypical in many respects. The European companies and economies were badly hit by the lockdown brought about by government. During that period, we played our role as a committed and active investor to support these companies and advise them. In private debt, in particular, we have a close dialogue with the companies in our portfolio. We supported them on several levels, and in particular, in some cases, we helped them obtain state-guaranteed loans. Well, there may not be that many of them, but if you look at our portfolio, this is significant. We had no defaults since the beginning of the year 2020.
There were cases where we had talks and tried to adjust some reimbursement timetables, but no defaults, and the idea was to help companies keep their cash position. At the end of the day, if you look at the TDL IV, which is our flagship private debt portfolio, the average leverage of companies remain modest, about four times net debt on EBITDA, well below the European average. Let's move on to slide number 20. A few words about our private equity approach, which is a differentiating approach in many respects. Number one, our core business consists in providing growth capital or growth equity to help growing companies achieve additional equity to finance their all expanding. We don't conduct majority LBOs. We stand by companies, entrepreneurs, and founders as partners over and beyond financial aspects.
We are indeed active investors. What we hope is that our companies in our portfolios can take advantage of the wealth and depth of Tikehau Capital's platform. Our companies can take advantage of our 11 offices around the world, plus our international advisory boards for their international development. This is what all our companies can have as part of our service. Our private equity approach is based on strong themes and beliefs. For instance, the belief that economic stimulus must involve new equity, new funds for companies. The idea, you have these state-guaranteed loans. It's all very well, but companies need equity being their own funds. That's the whole business of Tikehau's private equity business. Companies should be the first actors in the energy transition.
For a number of years, we've introduced a number of initiatives with our general purpose growth capital with energy transitions and other goals. This is nothing new for us, but at Tikehau, we keep innovating, and we are doers. This is not just theoretical. This is an illustration on slide 21. A few examples of the way in which we support the companies in our portfolio. We have what are known as the five pillars of value creation for GreenYellow, which is a very dynamic company. It offers innovative solutions to achieve energy savings. We worked with Bouygues Immobilier because GreenYellow initially installed solar panels in supermarkets. Now, thanks to that, they had a contract with a number of real estate portfolios, especially in Spain and Italy. Nexteam and another private equity partner, which specializes in complex mechanics.
We improved their operational performance. We supported them in accelerating the digitalization of its processes. Since Tikehau is investing funds to develop companies, what we try and do is to play our role as active shareholders standing by these partners to help them grow. This is not just a financial investment. This is very important because we try to imprint our own entrepreneurial DNA to these companies, and it's a win-win deal as far as that is concerned. Let me just say one word about the following slide, and I think for the first time, some of you will be discovering this for the first time. We have two slides. We move on to slide 22 on initiative entitled TKS, Tikehau SPRIM. As we mentioned this, we want to create, not compete.
Tikehau is very much involved in alternative asset management and is an innovator in terms of company development. Let's look at that partnership that we have with SPRIM. SPRIM is an international expert in medical and healthcare advice. It has as many as 450 customers serving pharma, med-tech. We have 600 colleagues and experts there. This is partnership with a company in the healthcare business. In March 2018, we announced its initial closing, called TKS1, which was looking at venture capital in med-tech and life science companies. The first vintage was very successful, and now we are in the process of marketing the second generation of the same fund. The first fund had EUR 56 million in it, and that reflects Tikehau's strategy. We start things in nursery because EUR 56 million is not a lot.
As you can see in the following slide, on slide 23, we invested in a number of companies, ObvioHealth, Fibronostics, Antares. These are highly innovative companies, and I'll give you an example on the ObvioHealth. ObvioHealth is a digital healthcare company, digital apps to monitor a number of diseases. In COVID, ObvioHealth was one of the first companies allowed by the American FDA to monitor patients with COVID or post-COVID patients. In parallel, Aquia, which has EUR 30 billion in market capitalization, has a stake in ObvioHealth and has offices around the world. Because of the COVID crisis, a number of investors are saying, "Oh, we have to invest in health, in healthcare. What should we do? Where should we go?" Well, we started an initiative in healthcare as early as 2018. We raised initial funds.
We raised a second fund, and we have dedicated teams. Now, we are stepping up this healthcare business. Likewise with the energy transition, everybody wants to engage in energy transition. We started more than two years ago, our partnership with Total in energy transition. Tikehau will continue innovating, and we will be now producing new profitability for the group and growth opportunity. I would like to give the floor to Henri Marcoux who will tell you about the financial performance. Marcoux.
Thank you, Antoine. Good morning, everyone. I'm on page 25. Let's look at the key figures for the first half of 2020. On the top of the slide in dark blue, you've got what's related to the asset management scope, the first driver of our model. You can see that business generated EUR 88.3 million in revenues for the first half, or a big increase of slightly more than 16% compared to the same half year last year. Thanks to a cost reduction policy, we were able to limit the increase in our operating costs to 7.7%, so they now stand at EUR 59.7 million for the first half. Consequently, operating income from asset management is posted at EUR 28.6 million, a growth of a bit less than 40%, or an operating margin of 32.4%, which was at a level of 27% for H1-19.
This growth proves how relevant our model is and how able we are to generate steady growth, profitable growth in asset management. At the center of the page in the gray part, you've got the figures related to our investment activities, which were impacted by the volatile market context that we experienced in the first 6 months. Given the negative change in fair value for some assets, the revenue from investment activities were at -EUR 77.2 million. After including operating costs, the operating result from the portfolio was -EUR 124.5 million. Well, given the complex context in the first half that we went through, we've decided at the beginning of Q2, given the exceptional circumstances that we were going through with all the uncertainties, we decided to implement some financial instruments as part of our risk management policy in order to protect our portfolio from an important market reversal.
These financial instruments generated a cost, -EUR 165 million over the six months. After including these effects, the operating income from investment activities was a total of -EUR 219 million. At the bottom of the P&L, you've got the financial income, a negative income of -EUR 19 million, an improvement compared to 2019, especially with the lesser impact compared to the previous year of the fair value adjustment of our interest rate hedges on our syndicated bank loan. Taxes were received at EUR 41 million, mostly related to deferred taxes and the capitalization of tax deficits. After including financial income and the tax credit, the net income group share was -EUR 240 million at the end of June. Regarding our AUM, we've talked about it earlier. In order to measure performance in our business lines, we group assets within two scopes of business.
First of all, the first one on the left-hand side is 27, where you can see the AUM for asset management, EUR 24 million distributed into four asset classes that you all know, that you heard about from Antoine. Private debt, real assets, capital market strategies, and private equity. For each of these asset classes, you can see the split of AUM between what was entrusted to us by our investor clients, the blue part, and the amounts committed from our balance sheet at Tikehau Capital, which is in orange. Thus, at the end of June 2020, a total of EUR 2.2 billion were committed from Tikehau's balance sheet and invested in our own strategies, which is fully in line with our policy of aligned interests with those of our investor clients. You can see that the amount is equitably split between all of our strategies.
Assets under management in investments are listed in gray on the right at EUR 1.7 billion at the end of June. This part matches with the direct investments from the Tikehau portfolio outside what is invested in its own funds, as well as the group's cash. Here we've given you details about the change in AUM in our asset management scope by separating the share of AUM coming from investor clients, third parties, and what's committed from the balance sheet. You can see that with a total commitment of EUR 2.2 billion or EUR 400 million more than a year ago, Tikehau has investments also from third-party investors for EUR 21.8 billion, EUR 2.4 billion more than a year ago.
This shows the multiplier effect of Tikehau balance sheet commitments in its own balance sheet, in its own funds, and also the trust shown to us by our clients investors because of these aligned interests. We'll remind you once again that this is a key aspect that we care particularly about and which is a differentiator in our model. We wish via our balance sheet commitments in our own strategies to create conditions for a clear alignment of interest between the balance sheet of the group on the one hand, and on the other hand, the investments made by our clients. This is a central approach which has remained the same since the IPO. It's also unique in the establishment of a trust-based relationship for the long term with our investor clients.
On the right-hand side of the slide, you can see that out of EUR 2.2 billion committed from the balance sheet, EUR 1.5 million were already drawn from our funds, so invested in this in a fairly balanced way between all four asset classes. As we said earlier in our previous conference calls, we want to actively carry on investing in our own strategies because that helps us guarantee the launch and marketing of our vehicles, thanks to this multiplier effect. To create an alignment of interests that's clear with our investors, and also leverage the yield of these vehicles, which generates a recurrent source of income for which matters a lot for our P&L. Let's look at the analysis of our AUM on page 29. We have split it into three categories: AUM that generates fees, future fee-paying AUM, and non-fee-paying AUM.
Fee-paying AUM grew faster than total AUM for the group, which is a relatively positive indicator, now standing at EUR 20.3 billion at the end of June 2020, with an increase of 17% compared to June 2019, which was mostly driven by steady inflows in capital investment, as well private equity and real estate, also combined with steady growth in our funds in private debt and real estate. As I was mentioning, we also benefited from EUR 2.7 billion in AUM that will generate fees in the future. This is a reflection of our private debt strategies and partially of our real estate strategies, especially via the trio funds that Antoine talked about earlier, where the management fees are paid based on the capital deployed and not the capital committed by investors.
This is important to understand because these EUR 2.7 billion will be converted into income as the funds are deployed, and so it's not yet reflected into our P&L. We're talking about EUR 20 million-EUR 25 million extra in management fees that will reach our P&L because of that. You also know that we usually look at the duration of the AUM. As you can see on page 30, we've just noted that the share of fee-generating AUM is 85% of total AUM for asset management, so three percentage points more than in June 2019, and the level has remained steady versus December 2019. Please note that excluding open-ended funds within capital market strategies, our funds are mostly closed-ended for long durations. For Sofidy funds, you can't really talk about closed-ended funds, but the average holding duration is higher than 12 years.
We have products that are very sticky, very long, so our clients are committed for the long term with us. If you look more precisely at the closed-ended funds, you'll see that over 90% of fee-paying AUM has a duration higher than three years, which gives Tikehau Capital very good visibility over our fee-generating ability, which is key in our business model. Regarding more precisely the income, the revenues from the first half of 2020, you'll see that revenues grew by over 16% over the last 12 months. This strong growth should be compared with the growth in AUM that pays fees that I explained a minute ago. Revenues from asset management made up of management fees for the first half to the tune of EUR 87.1 billion.
Regarding carried interest and performance fees, well, their contribution to income was EUR 1.2 million for the half year, and the carried interest is coming from our private equity business. Note also that regarding revenues, we have good diversification. Antoine talked about diversification in our AUM in the last three years since the IPO. You can also see at the bottom right of the slide that over the last three years we've also had very good diversification in our revenues, which is very good if you want to grasp the risk within Tikehau. You can see that private equity and real assets account respectively for 15% and 42% of revenues, which is once again fully in line with the rebalancing of the product mix towards higher yielding strategies.
One of the indicators that we put in place after the IPO in 2017 is important because it measures the ratio between revenues and AUM. For the 12 months ending 30 June, the average fee rate was 94 basis points, which is a strong increase over 10 basis points more than June 2019. If you compare revenues to AUM, that shows how relevant our model is, and that shows that the product mix has become more diversified with higher paying strategies since the IPO. Revenues related to performance fees account for five basis points over the half year. Keep in mind that most of the funds developed by the group are young, and our model does not depend on generation of carried interest in the short term.
In this respect, we are certainly less mature than our peers, and so we have a lot of growth potential for our revenues and profitability in the future. Regarding more precisely carried interest. Every six months, we give you an update on the AUM eligible to carried interest, and you will see that the AUM eligible to carried interest keeps increasing. It is now EUR 9 billion at the end of June 2020, so over four percent growth, plus 20% for the last 12 months, and this growth is higher than the growth in AUM overall for the group. The carried interest is triggered on fund maturity as soon as a target yield rate or hurdle rate is reached.
Our ability to generate revenues will of course depend on our ability to invest the funds that we are entrusted with and generate performance, and that's what we've been able to do for 16 years since the creation of Tikehau. I'll also remind you that the listed company, Tikehau Capital, as part of its alignment of interest concepts, will receive 53% of carried interest on all of the closed-end funds for the group. Now the flip side of all that, revenues and the key elements that I mentioned a minute ago. Of course, all that results into the operating income from asset management. You can see that there's been significant growth, almost 40% for H1. H1 2020 versus H1 2019, over 3x more than what we generated two years ago.
That's related to the growth in revenues from the asset management scope, but also allied to very good control over operating costs for the first half. The change in operating margin from asset management, as you can see on the right, shows how relevant Tikehau Capital's model is in asset management, even during major crises as the one we had in the first half, and also proves how able the group is to maintain profitable and lasting growth. We've mentioned it time and time again. We wanted to remind you that our platform is leveraging more and more effects of scale. It's now more scalable, and so our revenues can grow more than our costs.
For instance, we haven't yet reached the full capacity for a certain number of business lines, but revenues are growing very favorably compared to our level of business, and that's very clear to see in the figures of H1. Let's look at a review of our investment activities on page 36. Revenues from investment activities stood at minus EUR 77.2 million for the first six months. You can separate three components in these revenues.
The first effect is that of unrealized fair value changes. That's in light blue on the slide. Minus EUR 143 million for these effects. This is the fair value adjustment of underlying assets that are within the portfolio, minus EUR 143 million for the first half with two noteworthy effects. First, the effect of the Eurazeo line, minus EUR 61 million, and also minus EUR 24 million for our listed real estate company that we have in the portfolio, Selectirente.
The second effect is that of realized fair value changes. The underlying assets have been divested from the investment portfolio. There we leveraged a fairly chaotic first half to make a number of arbitrages within the portfolio, and that translated into revenues of EUR 23.8 million. That's the dark blue part on the slide in the center of the slide. A number of disposals of assets that helped us leverage major revenues. The third effect, which is also high, is the orange part on the slide, EUR 42.3 million for dividends, coupons and as well as payouts received by Tikehau because of these investments in funds, which is a slight decrease compared to H1 2019.
We had EUR 49 million. The decrease is because of the absence of dividends for the two listed lines that we have on the balance sheet, Eurazeo and DWS. Please note one major thing. These EUR 42 million, these revenues remained high. It's mostly made up of revenues related to holdings in Tikehau funds. It's important. We talked about aligned interests. We talked about investing from the balance sheet into our funds. Well, with that, we can have steady recurring income, even growing income for the first half. Please note also that the realized effects, so the orange and dark blue parts on the slide, increased compared to June 2019. Revenues from investment activities, as I said earlier, were mostly impacted by changes in fair value from unrealized investments in the first half. Those decreases could be reversed in the future.
I'd also like to draw your attention to the right-hand side of the slide, the split of revenues between the Q1 and the Q2 , as you can see on the screen. Whereas unrealized fair value changes were highly negative in the Q1 because of the extremely volatile market context, talking about minus EUR 287.5 million. This turned into a positive in Q2 with EUR 147. Regarding the financial instruments that are here to hedge the listed assets, they were put in place at the beginning of Q2 when the markets were not very favorable and as the global economy was facing major systemic risk. That's offset the positive market impact of the second quarter. Now let's review the balance sheet. I'm on page 38.
As you can see, our balance sheet structure remains robust, which is an essential asset in a deeply changing environment, especially with such an uncertain and volatile market context as we experienced in the first half and that we are still experiencing. On the asset side, you can see mostly our investment portfolio standing at EUR 2.4 billion. I'll get back to it in a minute. Our consolidated cash, it's a bit less than EUR 900 million and a certain number of aspects with, in particular, the goodwill. Our equity is still high at EUR 2.8 billion and financial debt is stable at EUR 1 billion. We also have EUR 500 million in undrawn credit lines. Our gearing ratio is still under control at 36%.
Let me remind you that Fitch had given Tikehau its first financial rating in January 2019 with an investment grade BBB- level, and this rating was confirmed this year in January. As we mentioned earlier, we are going to carry on harnessing our balance sheet for the development of our business, in particular, by investing more in our own strategies and also by using external growth operations. Our investment portfolio of EUR 2.4 billion is, of course, a major component to be analyzed within our balance sheet. This portfolio is still as granular with 210 underlying assets for a total of EUR 2.4 billion at the end of June 2020. Moreover, as we said earlier, we carried on investing in our own strategies. Therefore, the share of investments from Tikehau balance sheet in its own funds is now 65% versus 49% just a year ago.
This is fully in line with our goal to raise the exposure of Tikehau's balance sheet in its own funds to 65%-75% by 2022. With the complex market context that we've had since the January 1st , we've also had some important rotation in our assets. Therefore, in April, we increased our stake in IREIT, a listed real estate company in Singapore focusing on the European property market. As Antoine said, we raised our stake from 16.6%-29.2%. We also leveraged market conditions to dispose of 64% of our share in DWS, helping us generate some proceeds of EUR 110 million. As we said in January, well, more recently, we got the reimbursement of the EUR 115 million loan that was given in early 2018 to Conforama. This loan was partly financed from our balance sheet and also financed by some of the funds managed by our subsidiaries.
More precisely here, we've put together a focus on page 40 on the granularity of the EUR 2.4 billion in investments carried by the balance sheet. You can see here the split between the direct assets, EUR 823 million, and investments made through our funds. At the bottom of the chart, you can also see strong diversification between all four asset classes when it comes to investments within our balance sheet. Let me remind you that the direct investment component is relatively well-balanced between listed and non-listed investments. I'll throw it back over to Antoine for the outlook.
Thank you, Henri. On slide 42. Over the last 16 years, ever since the company was created, we've built up a global resilient platform, especially given the current context. It's even a bit more visible.
First of all, we've built up a platform with a very robust balance sheet, as Henri reminded you of. It's fairly rare to have a robust balance sheet with a lot of equity in asset management. We have EUR 2.8 billion in shareholders equity. As Henri reminded you, we have EUR 900 million in cash and undrawn credit lines of EUR 500 million, so that we can leverage selective external growth as we did in the past, or we can even launch new initiatives. The line broke up for a minute. We have great granularity in all the subjects. We have the next private debt flagship, TDL V. The previous fund had EUR 2.1 billion in AUM, TDL IV, and we had EUR 600 million in TDL III. We also have the energy transition fund, T2, the second private equity fund.
We are also launching a number of initiatives like PDS, private debt secondaries. We hired an associate from StepStone to develop this practice in New York, and as you probably know, StepStone is listed on the U.S. market. It's a consultant in alternative management with a market cap that's roughly the same as our own market capitalization, with the same metrics in terms of profitability from asset management, but they only have EUR 100 million in shareholders equity when we have EUR 2.8 billion. We are convinced that we are undervalued now after tonight. We'll also become stronger in our current asset management platforms, in particular, whether they are listed or not. On the listed side, Henri talked about IREIT or Selectirente.
We have two listed real estate companies that held up very well because of the current turbulence, not just in terms of share price, but also in terms of collection of rents. We'll carry on developing these platforms. We're integrating Star Infrastructure that we're going to help grow. For those of you who remember, we announced in July, we talked about it, we won the request for proposals from big European aeronautics companies, Airbus, Thales, Dassault, and Safran. We bought ACE that managed EUR 300 million at the time, just a year ago. We're adding a fund that already has EUR 630 million in it. That shows how able we are to integrate new platforms and grow them in a fairly significant way. The acquisition price of ACE for this company that managed EUR 300 million is extremely moderate.
Moving on to slide 44, you can see the pipeline of realized acquisitions and integrations, which are some fairly different animals. If you look at, apart from the acquisition of Sofidy that we bought for a bit more than EUR 100 million. Most of the acquisitions were fairly moderate and earnings enhancing in terms of shareholders' equity. Maybe if I can drop up with slide 45. The year 2020 is not an easy year by any stretch of the imagination. There's an unprecedented sanitary crisis, and we need to remain humble because no one knows whether the health crisis is over, with some very different effects depending on the sectors and geographies. It's a relatively complex year. We believe that the groups got the right strategy, and we're not slowing down. Quite the opposite.
Our inflows in the first half in January show it, our ability to innovate and be ahead of the pack on various issues like the energy transition, healthcare, cybersecurity, all that is very well illustrated. We've decided to communicate a bit more and to promote the successes that we initiated in terms of ESG governance. You'll see now a bit more communication about these topics. We think that we've always been pioneers, and all of the ratings that we got from the various market players confirm that quite well. In the short-term, of course, there will remain some uncertainties in health terms, political, social, or monetary terms as well. We are still very vigilant.
All of our employees at Tikehau are vigilant, and they're positioned to manage the capital that we're entrusted with to seize opportunities to value the assets that we've invested in and to carry on investing. We are still very confident about our AUM goals by year-end, but also regarding our guidance for 2022. The group's got many assets, and we are well-armed to face the cycle, whatever the cycle is. We're now in marching order in order to deliver on our goals by 2022, and we are happy to confirm these objectives. Thank you so much for your time. We are a bit over time. It's now 9:37 A.M., and now let's have a Q&A session.
All right. If you connected by phone, press star one on your keypad and make sure that you have activated, unmuted your mic. We'll let you know.
Press star one if you are connected by phone. Question number one comes from Nicolas Payen from Kepler Cheuvreux. You have the floor.
Yes. Good morning, thank you for this presentation. I have three questions. Number one, the cost of the hedging instruments. Can you give us to date or an update to say whether there will be additional costs with a positive or negative outcome? On IRESS, you said that you were able to manage all your acquisitions, but you believe that you're acquiring your American partner. Are you happy with that, are there other verticals where Tikehau would like to strengthen its position? Question number three is on, well, you gave some guidance on assets under management, EUR 27.5 billion, but if you compare this with your AUMs at end June and the net inflows in July were at EUR 27.3 billion. Well, you have capital markets with negative market effects. Maybe that's the reason, but I'm a bit surprised to see that there's very little between the two.
Why is it when we have a number of funds that are, in fact, raising funds instead of shedding them?
Yes. Thank you for these three questions. The hedging costs are detailed in our half-year document. This is now available online. We decided to hedge the entire listed portfolio, Eurazeo, DWS, to listed property companies, Efiance and IRE, in our capital market strategies funds, plus loans. All this has been hedged. We still have it. We believe that there will be turbulence ahead, as Henri pointed out, we are long on assets. We have EUR 2.4 billion of our own assets invested. We have kept that hedging instrument. The question number two, the setup that we have in terms of verticals, have we completed that?
Of course, the answer is no, because if you look, well, there are many asset classes, themes, and geographies around, but we have to be very careful indeed, because when we acquire something, we try to keep the acquiring price down as low as possible. Well, private debt is something we look very carefully at because when we look around the world, Asia, North America, per industry or by territory, we added infrastructure, but that was a modest acquisition. We purchased a platform with EUR 600 million in assets.
That's not huge, but there may be other verticals. We might create some. The healthcare vertical is a case in point. For France, this is something we had in industry. We will have a health vertical like we had an energy transition vertical. It's too early, too soon to tell. Our business plan is flexible enough. We're not saying that we will stick to this or that business or asset class. We will add something if we think that may improve our profile, that gives us additional expertise. We are well-equipped with our five verticals. Sorry, it's a lengthy answer, but there's no perfect answer. We're looking. We're happy to diversify if we can, but all initiatives, either in external growth or in organic growth, have to reach a significant critical mass. Otherwise, it's just a distraction, as it were.
On the question of the three on the AUM EUR 27.5 billion, you have to remember that in H1 we had EUR 500 million in distributed dividends. Of course, if you don't raise funds, then you return capital to investors. Of course, mechanically, AUMs will go down. There's a distribution effect. We also invested EUR 300 million in our own assets into our own funds, and there shouldn't be a double crunching. We are being cautious here. Maybe overcautious, I don't know. All will very much depend on the market and what happens around the world. There's one example that we often quote for our English-speaking partners. When we look at most of the big insurance companies, the pension funds, or the English financial institutions as well, at the beginning of 2021, with the Brexit, they may not be in a good position to raise funds.
It will very much depend on what happens outside France, and we have been very conservative on our guidance so far. Thank you. Thank you.
The next question comes from Arnaud Giblat from Exane.
Thank you. Two questions. On your targets for 2022, EUR 35 billion in AUM compared to EUR 27.5 in 2020. In this presentation, you are looking at a stepped-up fundraising by 2022. How should one look at this? Are you expecting flagship fundraising? Will that be the main driver of fundraising, or can you give us details on these future flagship fundraising? Question number two, can you comment on the talks you are having with your clients on demand for alternative asset management? March, April, and May, the peers have been saying that business was down, that there was less appetite to risk. Now we hear appetite to risk is coming back.
Is that your assessment as well? Thank you, Arnaud, for these two questions. On AUM, well, from 27.5 to EUR 35 billion, our expectation. Well, where we are forging ahead is private debt. We have our private debt program will definitely be part of the flagship, so TDL V should generate a significant amount in fundraising. We also have larger funds. When we raise funds, I mean, in energy transition, it was EUR 600 million, the first closing of our aeronautic with the four manufacturers, EUR 630 million, plus new initiatives. So, these are maybe modest, but the Health Fund, we completed one fund, we're opening another one.
We're looking again at great diversity, fine granularity in the products, which, of course, might make it a bit more difficult for you to see, but it means that the performance risk is lower because if you collect funds on the 10 or 12 funds, well, it's best to have a couple of flagships. We do have these lined up. We will see whether there will be more sub-assets within that. Looking at CMS, we are looking at positive fundraising, and CMS are our targets. We have daily cash capital can come in or out. We have been positive since the beginning of the year, which is rather unusual because on the cash market, funds have been going down, and the equity funds collected a few hundred million EUR, and we're just above EUR 1 billion, EUR 1.2 billion, and we should be collecting funds there.
A long answer to say there's still granularity in our funds which makes it a bit more difficult for you to make forecasts. We do have TDL V as a flagship. In energy transition and aeronautics, we are looking at new flagships, so to speak. On alternative demand for alternative asset management, there are consecutive movements. Number one, we have found a structural movement of interest rates. They are all negative or very low interest rates in North America. That is something of an incentive for asset managers, for investors or pension funds, private banks as well, and retail banking as well. The life insurance in France hasn't been collecting much. They look at other account units in private assets. We're looking at alternative assets with higher yield and that are more de-correlated. That is a lasting and positive trend.
The biggest investor in alternative assets is the Japanese Post Office, EUR 8 billion. It has a huge savings rate in Japan. Well, they're looking for alternative assets. There's this trend, which is a strong trend. With COVID, there were two negative effects, and some people have been realizing this. A number of pension funds and sovereign funds had their prudential ratios strongly deteriorate. A pension fund has an asset portfolio with, say, EUR 100, and they were hit directly by the collapse in the equity markets. Mortgage Bank is a case in point. They had to reallocate their assets, and that was particularly true in certain American institutions. If you look at the foundations of American schools, since schools have closed down, they're collecting much less by way of funds, they will be investing much less, both in traditional and alternative asset management.
That's one negative trend, is that if you look at the big investors, all of them find themselves in a rather different situation when it comes to fundraising. We can see that fundraising have come to a halt. Another negative aspect is the financial industry tends to be somewhat sleepy, and that is the reason why we exist at all. In the context of COVID, we have found that if you have an insurance company that has no investment policy, and they'll have a meeting with you in a month's time. Well, you might have to wait a long time before they start investing. There's a long trend for alternative asset management. Right now, there's a slowdown in the short term. Our own fundraising activity, well, we haven't suffered that much from this trend. We are entrepreneurs.
We are the only alternative asset management company that is run by entrepreneurs. I think Blackstone created City Partners Group. They are run now by managers, talented managers. We are fortunate to have the two founders that are running the show have an entrepreneurial DNA. They are using their talents to raise funds where funds can be found. The more cautious and the more conservative players in terms that are diversified in terms of geography and business are or Banca March, and these are growth factors, or Homunity is our real estate platform of crowdfunding, where we have 22,000 small investors. We have several channels to raise funds. It's true there was a slowdown. It's picking up again. It's too early to tell whether the structural trend is back on the rise. I don't know if, Arnaud, is this a satisfactory answer?
No, that was crystal clear. I do have a follow-up question. Could you tell us, comment on the pipeline of acquisitions that you're contemplating? It's true that we're looking at a number of possible targets. The trend now is that the price of alternative management assets is quite high. Just look at the metrics and the listings of StepStone from last night. The closing last night was 38 x the price of our own share. It means that many alternative asset management companies that we may wish to purchase are expensive. The only exception is when they are small, which was the case for ACE, only EUR 300 million. Star infrastructure that was EUR 600 million. We're looking at small companies that can have either an additional asset class or an additional geography. We're not present in Germany. We'll be looking at more possibilities in Germany.
We have a big pipeline, but there is nothing, no major target now. The main criterion is the acquisition cost.
Thank you.
Thank you. If there's no question on the waiting line, we're switching to French. If you want to ask a question, press star one, and now questions back in English.
The next question comes from the line of Christoph Greulich from Berenberg. Please go ahead.
Yes, good morning, and thank you for taking my questions. Three questions from my side, please. My first question is with regard to the current fundraising momentum at Sofidy. Did you see here any signs that inflows are returning to their previous levels after the slowdown that we have seen in Q2? The second question is with regard to the CLO business. What is the current situation here with regard to a new CLO, and should we still expect this in this year? Lastly, could you provide us with some color on what you expect for the operating cost development in asset management in H2 compared to the first half?
Our explanation is the following. Number one is the company has been founded in 1987, is more than 30 years of track record across cycles, including the pretty large 1990 real estate crisis. Their track record is pretty strong. I give you a sense. Q2 has been very difficult in Europe for collecting rents across the board. You probably saw that Unibail-Rodamco-Westfield announced yesterday evening a massive share capital increase. They published their Q2 in terms of rent collection. Let's call it they were in the 40% range of rent collection, i.e., they are supposed to collect 100, they only collected 40. At Sofidy level, we are currently at 82%. It's not finished yet, we continue to manage properly the rent collection. Track record is robust. Savoir-faire is quite unique.
Remember, I remind you that we have 100 people working at Sofidy. The trend in terms of inflows remain positive. I give you a figure which is not public, but you can find it if you dig deeply either on the regulator or on the various internet site. The net inflow that Sofidy as of end of August is EUR 500 million, which is pretty decent. We continue to attract good inflows at Sofidy. CLO, on your second question, we've been fairly calm, even pre-COVID, because we saw that your spread were too tight. We take the opportunity of market dislocation and all that to relaunch, and be in a mode of having six CLO on the way. That's projects underway. Number three, operating costs.
We consider that our set up pretty decent in terms of people. The increase of margin in the asset management illustrate the fact that we are very cost-conscious. At the balance sheet level, operating expense, we do not expect additional or relevant additional costs. Is that also your question, Christoph?
Yeah. That's very clear. Thank you very much.
The next question comes from the line of Mandeep Jagpal from RBC Capital. Please go ahead.
Morning. Thank you for the presentation and taking my question. Just two from me. First one is on the hedge, and the second one is on deployment. On the macro hedge, it was implemented at the start of Q2, and I understand it's Euro Stoxx futures that can be rolled every three months. How are you thinking about the macro as it sits at the moment? Are you thinking about rolling that over at the end of September? The second question is on deployment of capital. H1 was tracking at about 50% of the level of 2019 at around €0.8 billion. There's still significant dry powder in the fund, and I was wondering how you're thinking about deployment in H2 compared to H1, and has the opportunities there changed due to COVID?
Thank you for your two questions. You are correct. We are rolling every three months. Sorry. Macro hedge. Our view is.
To put that in place, the timing was not perfect, but people know timing, obviously, it's almost magical. We are rolling every three months. The way we see that with your question of end of December, we're going to be very opportunistic in the way we decide to stop the macro hedging. As you noticed, we own DWS stake. If we think that opportunistically, we can reduce our market effect, positive and negative on the investment and/or on the hedging, we will do it. Our view is that the markets are pretty crazy, and it's not only the tech bubble in the U.S. I mean, valuation are super expensive, and people, in that view, don't really realize that a lot of industrial companies are really in disarray with this sanitary crisis. We kept the hedge in place.
If market become more turbulent, I suspect we're going to probably reduce the hedging, number one. Number two, on deployment. At the end of the day, people when they invest in your fund, they give you money to invest, the most important thing is to make sure you deliver a good return. When you look at our return across our strategies and our fund, it's been mainly due by the fact that we are very conservative as a firm. That's why we continue to keep a big amount of dry powder. Obviously, when you keep dry powder, it's not generating day one management fees, because on the majority of our fund, we receive management fees when we invest. For H2, we see some activities, more activities in private debt than H1. We remain very, very cautious on real estate.
When you look at what's happening with large real estate property company, it doesn't seem super appealing, and it's too early to say. For instance, if you are a big owner of a big office space, which is not our case, and you have tower on Canary Wharf or La Défense, do you want to invest and buy office tower on Canary Wharf? The answer is no. The value of this asset will decrease. In terms of real estate, we will remain very calm in deploying. In terms of private equity, we continue to have a strong pipeline for our Energy Transition Fund. Again, we think we are ahead of the curve. We've made already five investments in this fund, and we are contemplating a new one. Cybersecurity, which is smaller, we'll invest.
Our healthcare, med tech, and biotech, we'll invest, and we'll continue to invest. I suspect that we're going to continue to invest in H2, but probably at a small pace, because we consider that the sanitary crisis is not over, and the consequences, social, economic, and political, are not fully there. Does that answer your question?
Yep. Got it. Thank you.
As a further reminder, please press star one on your keypads if you would like to ask a question. Thank you. I will now hand over for any questions via the webcast.
Perfect. De Geoffroy. Jean-Michel Oudo asking two questions. What could be the impact of the micro-hedge on H2 in terms of EUR million on P&L? You have strong inflow goals, on what type of funds? Regarding the micro-hedge, same comment as for the first question. The details in the interim results, the impact could be positive or negative. As markets go, offset by listed subject to potential change. Question on fundraising, on what types of funds, what will that focus on in the second part of the year? We are marketing energy transition, cybersecurity, aeronautics, TDL V for private debt, and TSO II, our special situations fund, where we collected EUR 450 million so far. We haven't talked about EUR 450 million on that fund, to be compared with less than EUR 150 for the first vintage. We think that this TSO II fund should have good inflows.
What you should see is that we've got a lot of different initiatives, so several different engines on. We think that those engines that are on are quite attractive engines for investors. No more questions from the webcast. Well, thank you very much, ladies and gentlemen. Thank you for your time, for your support, and rest assured that we keep our eyes on the ball as always, and we're at your disposal to carry on with the conversation. Thank you so much. Thank you for taking part in today's conference call.