Morning, everyone. This is Mathieu Chabran. Thank you for joining the Tikehau Capital first half 2020 results. I'm joined today by Antoine Flamarion and Henri Marcoux, and we wanted to thank you to join us this morning. Let's start with a quick overview of the H1 2020. At the end of June 2020, our assets under management reached EUR 25.7 billion, representing close to 10% growth over the last 12 months, and 1.2% growth over Q2, despite a fairly unprecedented context. The first six months of 2020 have demonstrated our capability to achieve a very solid level of fundraising in a complex and uncertain context with EUR 1.1 billion of net new money for the asset management activity. Our teams have been fully operational and showed an impressive level of dedication in spite of the context.
This level of fundraising in H1 is very much in line with the amount we raised in H1 2019, a year ago, even though the environment is dramatically different, as we all appreciate. This is clearly a strong achievement from our teams, and we are grateful for the contribution. We're also improving our revenue mix with the continued growing contribution from real estate and private equity. One axis that we've been very focused on over the past few years, which accounted for 80% of the H1 fundraising. In private debt, as some of you may remember, we didn't have a flagship fund in the market this year, yet we remained active and we have been selected to manage Novo 2020, a new institutional fund designed to support French SMEs.
We already have several funds like that goes back to 2011 and 2012, under management. This is new success that confirms our positioning as a key player in financing the real economy. I should also add that we remain active in the management of our portfolio. In particular, we seized the opportunity to crystallize some value from our investment in DWS. In parallel, we remain strongly committed to developing our strategic partnership with them. We have a very positive interaction with the group. Despite this unprecedented situation caused by COVID-19 pandemic, H1 has definitely been a positive period for us, where we demonstrated our ability to maintain our growth momentum. We wanted to give you a quick update on the post cut-off, June 30th to July 30th, today. Q3 is starting very well.
Since end of June, we have gathered a number of major commercial successes, which in total represent an extra EUR 1.6 billion of assets under management added in just one month. More than EUR 1 billion comes from organic growth. We raised in just one month, effectively the equivalent of the whole first half. We will get back to these milestones, be in private equity with ACE Management or in private debt. Last but not least, we closed yesterday the acquisition of Star America Infrastructure Partners in the U.S., which we announced after the Q1 results a couple of months ago. Moving on to the next slide, a quick snapshot on fundraising. What is important to highlight here is that during H1 2020, we have raised EUR 1.1 billion.
As I was saying, almost the same amount as in H1 2019, keeping in mind that the circumstances were obviously fairly different. This growth was quite well spread between Q1 and Q2, and Q2 was even a bit better as EUR 600 million fundraising. You will see that this is exactly the same amount that we had been raised in Q2 2019, which once again we see as quite an achievement. It is important to note that real estate and private equity have largely driven fundraising for the period, attracting 80% of net new money in the first half compared to 60% last year, confirming the appetite of our clients for these two asset classes and also helping us further rebalance our business mix towards highly revenue-generating strategies.
As a reminder, our average management fees were 71 basis points in 2017, 83 basis points in 2018, and 94 basis points in 2019. We are obviously very much focused on keeping this trend and growing our top-line asset management revenues. Moving on to the next slide, page six. This slide here gives you a view on our assets under management evolution over the last 12 months and over the last six months for our four asset classes. I think it's important to know that for a business with long dated closed-end funds, quarterly analysis can sometimes be misleading and the last 12 months view brings some long-term perspective. Private debt is slightly down on a yearly basis but remains stable in Q2.
This has to be put in perspective with our natural fundraising cycle since we didn't have any flagship fund in the market for the past 12 months. We have had the success of the Novo 2020 I was mentioning, and we made some distribution to investors, mostly related with our leverage loan and direct lending activities. Another piece of good news that Henri Marcoux will come back on is that we had the first closing of our fifth direct lending fund in July, but Henri will comment further on that. As for real estate, assets under management are up by a solid 20% on the last 12 months basis.
In 2020, after a dynamic Q1 marked by the final closing of our value-add fund TREO, Tikehau Real Estate Opportunity, and a solid fundraising momentum at Sofidy, our asset under management increase in Q2 was lighter given the context. Our real estate business is very diversified across European geographies and also across asset classes since we operate residentials, offices and some retail. Private equity has also seen very solid growth over the last 12 months, more than 50%, with now EUR 2.3 billion of assets under management. We are convinced that equity financing solution will be a key tool to finance the economic recovery and the verticals on which we are positioned, such as the growth equity, the energy transition through our fund T2, are proving increasingly relevant.
Just as a reminder, two and a half years ago, when we went public, we had just shy of EUR 100 million of asset management in private equity. We are clearly delivering on that front as well. Finally, regarding our capital market strategies, fundraising for the asset class proved very resilient in a particularly deteriorated market environment. Fundraising was positive in H1, and Q2 market rebound contributed to offset part of the negative market effect seen in the quarter. Moving on to the next slide seven. Overall, at the end of June 2020, total group AUM stand at EUR 25.7 billion, representing almost a 10% growth compared to the same period last year and a stable level compared to end of December 2019, despite this very specific environment.
Regarding the asset management activity, on the back of what I described in the previous slides, we generated more than 13% AUM growth, one three, over the last 12 months, with AUM of EUR 24 billion thanks to our unique positioning on diversified and complementary asset class, on which we can very much differentiate ourselves. You can see on this slide that the rebalancing of our business mix is real. That is a key component of our strategy and model evolution towards a higher fee-generating strategy. On top of that, bear in mind also that 80% of our asset management, AUM, stands within long-dated closed-end fund, which leads to a very solid visibility on future management fee generation. Our assets under management is rather young, if I may say, and our model does not rely on short-term carried interest generation.
At the end of June 2020, the dry powder within our funds reached EUR 4.7 billion. That is very important item as well, which gives us significant means and resources to invest going forward. At the end of July, on the back of the fundraising I mentioned for the one month starting of Q3, we are closer to EUR 6 billion. Direct investment AUM amounts to EUR 1.7 billion at the end of June. The change in assets under management over the first half is mainly due to new commitments we made into our own fund, as per the strategy to align our interest with the one of our clients. This aggregate obviously also includes some market effect on the direct investment portfolio as well as the dividend payment.
You will also see some impact related to some financial instruments we implemented during the first half, which can be considered as a hedging tool for the investment portfolio in the very specific and particular uncertain market environment that we'll come back to that later. Moving on to slide eight. This is now a more detailed graphic view on the asset management AUM evolution. The slide, I think, is self-explanatory. It shows a solid sales momentum regardless of the period you consider. Our asset under management growth is first and foremost driven by a solid fundraising. You can see a strong progression in asset management AUM on the last 12-month basis of more than 13%, one three, driven by EUR 4 billion of fundraising, mainly private equity and real estate, as we mentioned.
We also gave back to investor a little bit more than EUR 1 billion, and market effects were actually, in fact, marginal over the period. Over the first half, asset management AUM proved resilient with a 1.7% increase. As said before, we raised more than EUR 1 billion over the first six months of the year, which is a strong achievement in this very specific environment. We distributed EUR 500 million to our investors, and market effects stood at negative EUR 200 million, with Q2 positive market effect, the market rebound effect partially offsetting the Q1 negative market effect. Asset management overall AUM stands at EUR 24 billion at the end of June 2020. Before handing over to Henri, a last comment on page nine, on the direct investment assets under management.
At the end of June 2020, direct investment AUM stands at EUR 1.7 billion, representing a EUR 500 million decrease compared to December 2019. This evolution is firstly linked to new commitments from our balance sheet into our own funds, in line with what we've repeatedly announced as a strategy of alignment with our investors client. Also, you can see that we have distributed over EUR 80 million in dividend over the period. Regarding market effect on our direct investment portfolio, they amounted to around EUR 70 million negative impact over the first half, mostly linked to leasing investment. It should also be noted that Q2 positive market effect of EUR 100 million have partially offset the Q1 negative market effect of EUR 170 million.
As touched upon in the previous slide, we recorded also a EUR 165 million negative impact linked to some financial instruments hedging that we have implemented during the first half as hedging tool for investment portfolio, especially for its various listed components at the time that the markets were undergoing a very high volatility and uncertainty, and that major systemic crisis was highly probable. We also have other items reflecting the cash position, such as financial expenses or operating cash flow. On that, I will leave the floor to Henri Marcoux to discuss the investment portfolio.
Thanks, Mathieu, for that. Good morning to all of you. Page 10, maybe to give you a bit more color on the asset management of our investment portfolio. As end of June 2020, we had a little bit more than 210 investment lines in our investment portfolio, with a high level of diversity and granularity in term of asset type. Should also bear in mind that the investment we make in one of our funds actually typically accounts for one line. As you know, each fund has a variety of underlying position, our portfolio is even more granular as it seems. We'd like to emphasize on that slide that now 65% of our portfolio is now exposed to our own funds, compared to 61% at end of December 2019. Remember, it was 49% a year earlier.
We are now fully on track to deliver our 2022 targets by exposing between 65%-75% of our portfolio to our own funds. This differentiating approach clearly enables us, first, to fully align our interests with those of our investors and clients, therefore offering, I would say, a particularly unique model driving growth in our asset management activities, and second, also to have a more recurring revenue streams. We've been also very active in managing our direct investment portfolio over H1. We took advantage actually of market condition in Q2 to reduce our investment in DWS by a bit more than 50%. You know, we've been developing on that, we have a very good relationship and collaboration with DWS as part of our strategic partnership, which is actually not at all affected whatsoever by this portfolio management decision.
We've been recently informed that Conforama, which is a financing that has been implemented by the group early 2018, will be soon repay the loan that was granted. It will actually generate some cash flow for partially our balance sheet and some of our funds as well. Page 11. We'd like to give you a bit of snapshot of the post end of June events that took place. You will see on that we've been achieving since end of June, many projects, and many very positive things have happened. As you can see here, we've been very active in the early weeks of Q3, adding a total of EUR 1.6 billion in one month. This compares actually to the EUR 1 billion that were raised during the first six months of 2020, as previously explained by Mathieu.
This is really, I would say, massive. Our teams have shown here a really great dedication in all of our business units. In private equity, ACE Management, which I remember is a company we purchased, an M&A operation we've been doing in 2018, which is our subsidiary specialized in investment in companies in the aerospace, maritime, defense, and security sectors, has been selected by the leading aerospace players and the French state to manage the support fund for the aerospace industry. Antoine will come back to that in a minute. We have also raised EUR 55 million as part of the institutional fund Novo 2020 within the private debt segment.
In the same segment of private debt, we are pleased as well to announce that we have now received around EUR 220 million of commitment as part of the first closing of TDL V, being the fifth vintage of our flagship direct lending strategy. Tikehau Capital committed EUR 60 million in this first closing. We are now actively marketing that fund. This is the very first positive milestone in that respect, even more in the current environment. Tikehau Capital has been chosen to manage an evergreen mandate for top-tier French institutional investors. This is the first actually evergreen SMA we've been closing in private debt. We hope we'll be able to achieve more of that kind in the future. Last but not the least actually, we have finalized yesterday the acquisition of Star America.
This acquisition we announced in May, and which is quite instrumental in our North American ambition and which allows actually the group to expand in a new asset class, being infrastructure. We are very much looking forward to develop that business just like we did with Sofidy and ACE Management back in 2018. Antoine?
Thank you, Henri. Thank you, Mathieu. Slide 12, please. Hello, everyone. Hope you're all safe in this context and environment. I am very happy to comment the strong achievement for ACE and its team led by Marwan Lahoud and Guillaume Benhamou. ACE has been selected through a very competitive tender by the French government as the sole manager for a private equity fund aimed at supporting and strengthening the aeronautic industry. The fund has achieved a first closing of EUR 630 million, with EUR 200 million coming from leading aerospace industry players, namely Airbus, Dassault, Thales, and Safran, EUR 200 million from the French state, and EUR 230 million coming from Tikehau balance sheets as a strategy of alignment of interest. The goal is to reach more than EUR 1 billion and provide support in transforming and consolidating the sector supply chain.
This is a major recognition of ACE Management expertise in the field of investment in aeronautics, confirm that Tikehau is a key player in the financing of the real economy. As a reminder, we bought ACE in 2018 because we saw the growth potential. This is a perfect illustration of our M&A approach. Scale up promising asset management team, focusing on trending verticals, continue to be innovative. ACE has an LP structure, historically very similar to what we developed in the energy transition with Total. Its LPs are mainly corporate, we're going to scale that with institutional investor. Next slide, please. Just a little bit of market sentiment here. The COVID-19 outbreak at first led to massive shock on the market, severe liquidity challenges, a surge in credit spread.
However, central bank's action by flooding the market with liquidity, maintaining low rates, have helped stabilize market quickly, leading to a strong rebound. The risk of the real economy remain high at various level. The virus is still spreading, leverage is high, and as you noticed on various H1, including this morning, a lot of industrial company are going through massive losses. In this context, a disciplined approach is essential. We are convinced that discipline, deep analysis, reactivity, high selectivity will enable us to come through the situation. Now it's all about asset picking. Our business is to raise money, but also to make sure we invest in a very selective manner. Next slide please, 14. In spite of a very challenging cycle, we would like to reiterate our strong conviction that the tailwinds underpinning private markets are structural.
You saw this slide couple of time before, but more than ever, we see it as very relevant. We are in lead position on the market segment that benefit from continued client demand. Institutional clients need performance to serve their long-term liabilities, and retail clients, which is a pretty new trend, are more and more willing to enter alternative asset classes regardless of their illiquidity. This adds up to our disciplined approach in a particularly volatile and uncertain market environment, and to our unique setup of alignment of interest. Next slide, please. In the face of the various challenges raised by the COVID-19 pandemic, we have all the needed assets to perform well through cycle. We have built over the years a unique platform with strong financial means and a unique team.
Asset selection, investment discipline, alignment of interest, sustainable performance, these topics are a good summary of our investment DNA, and we will remain more than ever entrepreneurs. We are confident that this culture, added to the strong and unique liquid balance sheet, is a key asset to navigate the current cycle. Finally, to the next slide. 2020 is still full of uncertainties, but we are confident in achieving our 2022 targets thanks to our strong setup and selective and disciplined approach. Thank you very much, everybody, and I think we are ready to answer question. Louis?
Yes, operator, can you let us know if there are some questions?
Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that's star one to ask a question. We'll now take our first question from Jens Ehrenberg from Citi. Please go ahead.
Hi. Good morning, guys, and thank you very much for the update. Just hopefully two quick questions for me. One is a bit more particular. You've mentioned the ongoing fundraise for the fund for ACE Management, and that I think currently that stands at EUR 630 million after the first close, EUR 230 million contributed by Tikehau, and that is hopefully going somewhere north of EUR 1 billion. Just in terms of the Tikehau contribution there, do you expect that to stay at the EUR 230 million, or would that basically increase with the size of the fund? That's the first question, and the second question is more a broader question of how you see the market. We had the large investment banks reporting that overall M&A activity has remained rather muted, but that there's been some indication of a pickup over the last month or two.
How do you see that for your capital deployment and investment exits? Do you see some signs of recovery there, or is everything still relatively quiet? Thanks.
Okay. Antoine Flamarion speaking. I'm gonna try to answer your two question. First of all, ACE illustrates perfectly what we'd like to develop. We hire a very small team of 20+ people two years ago with the real idea to extend that. At the time, Aero fund number three was a circa EUR 200 million fund. Pretty small fund, but a pretty good track record. Obviously, with the current pandemic and turbulence in the aerospace sector, we consider that expanding this platform was very relevant. At the same time, French government, with four of the largest European industrial company in the sector, decided to launch this tender. We submitted a proposal with strong competition from pretty large private equity players. Henri, one part of our DNA, as you know, is to commit large amounts of our balance sheet. We committed EUR 230 million.
We are going to stick to that, to answer your question. If it is a EUR 1 billion fund plus, let's say 20%, which is a pretty large commitment. We are going to stick to this EUR 230 million commitment. It is a pretty strong initial closing because we did not have to market the fund yet. It has been the tender. The fact that we have the four industrial companies investing there which create pretty strong alignment of interest with them, and I think they are going to help us on the fundraising. The target as mentioned, is a EUR 1 billion target fund with a EUR 230 million commitment from us. That is Henri and Mathieu touch base on that. It is private equity, so that create a better mixed product, if I can say, within our asset management, because it is private equity. This fund is a 1.5% plus 20% carried interest.
That should help the business mix and therefore the profitability of the asset management. On your second question on M&A, I make two comments, a more general M&A comments and the asset management M&A comments. First of all, this crisis has been very quick and very unique. It's been initially sanitary crisis, a financial market crisis. Probably now we are entering an economic crisis, which will be very different around the world. We see a lot of bankruptcies and special situation coming and pointing everywhere. Obviously, investment banks are pushing very hard to create M&A opportunities. As you all noticed, they had some very strong second quarter, thanks to huge and unique capital market activities, primary and secondaries. We think that investment banks will push pretty hard to create M&A opportunities. We're going to probably see here or there some M&A opportunities.
If you remember, some pretty large deal collapses and have been not concluded during H1 because very often buyers decide to walk away. With this economic uncertainty, it's difficult to see if we're going to have yet a huge M&A activity in broader term. We'll see. Our view is that it's probably too early to see a lot of activity because multiple are still very high, and economic downturn is only going one direction. Multiple should decrease. That's one. Two, in our sector, in the asset management sector and in the alternative asset management sector. As you know, there are only, let's say, 12 listed alternative asset manager in the world. You have a lot of private alternative asset manager. We see some activity there, very similar to what we announced on the Star closing in infrastructure.
We see some M&A activity in the alternative investment space, probably more on smaller company, managing from EUR 500 million, sorry, to EUR 5 billion. We don't see for the time being some pretty large transaction there. Obviously, we continue to monitor a lot of situation around the world in various geographies and various asset classes. Does that answer your two question?
Yeah. Thanks for that, Antoine. That was very clear. Maybe just a very quick follow-on on that. Given your comments around the M&A market activity at the moment, how do you think that will impact your funds directly in terms of how well positioned do you see yourselves to being able to deploy significant amounts of capital over the next six months or so? Do you think focus will remain more on developing the existing investments in your funds?
I think the answer is that it will really depend on an asset class basis. For instance, we start raising TSO, Tikehau Special Opportunities, which is a fund investing in special situation and stressed credit. We start deploying a little bit there. We are monitoring a lot of real estate transactions because as you know, traditionally people put a lot of leverage on real estate, and we see some good situations coming there. We are monitoring pretty deeply real estate situations. We could probably deploy there. On our private debt activities, we see a little bit of pick-up, so that's some either M&A or acquisition from private equity shops, and as you know, we finance them. We are two active situations there.
Then on our private equity bucket, as you know, we have a general approach and two specialized approach, ACE, we just discussed, and also T2, our energy transition fund, which is really sitting in the middle of a lot of activity because as you know, for instance, in Europe, all the governments want all the money flooded by governments need to be channeled through a green recovery plan, let's say. We are going to probably see some activities in our energy transition space. Overall, we remain very cautious. Valuation are very high. We just enter the economic downturn, so we're going to be probably active, but very selective as usual. Our level of dry powder at the end of July, is higher than the one we publish at the end of March.
That means that we remain selective, and we're going to continue to raise money and invest in a very selective manner.
That's perfect. Thank you very much.
We will now take our next question from Geoffroy Michalet from Oddo BHF. Please go ahead.
Hello, gentlemen. Thank you for taking my question. I hope you are well. I have a couple of questions. The first one has to do with your hedging strategy that cost you EUR 165 million. I just wanted to know if you could elaborate a bit on that and give us more insight on what happened there. The second question was on the cash position of the balance sheet at the end of H1, because you gave it at the end of Q1, but not in H1. That would be interesting as well. A third question would be, when did you sell DWS at this part of the stake and at which IRR? The last question would be on ACE Management. Do you expect to have normal fees, like the normal private equity fees of 2%?
Because it is a state back as well, fund, we would have to expect a lower fee rate. Thank you very much.
Thank you for your question. I think I'm going to take, hedging, DWS and ACE, and Henri will comment on cash. The way we see hedging, we have a EUR 4.3 billion balance sheet as end of December 2019, fairly invested. Because this pandemic and this crisis has been very unique and we are very close to a cataclysm, we decided to put in place some, we call them macro hedge, and more or less it cost EUR 165 million, which is more or less 4.5% of our balance sheet. Let's say we have a NAV reduction of 4.5%, through H1 on this hedging side. On the other side, obviously, we've got asset value decline in Q1 and then increase in Q2. On DWS part of the portfolio rotation, we decided to reduce our exposure to liquid assets. We decided to disclose that.
I think we gave the 54% of our stake has been disclosed, and at this stage, because it's AUM, we are not disclosing IRR, but we took advantage of the market, and we've been above, obviously, our investment costs. Maybe Henri will elaborate on the proceeds, and the cash price exit. On ACE, as mentioned, despite the fact that it's a tender with four industrial company and the government, the first closing has been done on a 1.5% management fees and a 20% carried. Very similar to a private equity fund. Obviously it will increase our business mix. Henri, I let you comment on DWS, maybe price and cash.
On DWS, the total disposal amount, as of yesterday is EUR 110 million for 54% of our initial stake in DWS. As far as the cash position is concerned, the cash position at the end of 2019 was standing at EUR 1.3 billion. The cash position at end of June is currently estimated at EUR 0.8 billion, a bit close to EUR 800 million. That cash position is being actually included into the direct investment AUM, it directly affects the direct investment AUM. Keep in mind that as of end of June, our level of financial debt has remained the same as end of December, EUR 1 billion, and we still have EUR 500 million of revolving facility, which is undrawn at end of June.
That's very clear. Thank you very much.
We will now take our next question from Christoph Greulich from Berenberg. Please go ahead.
Yes, good morning. Thank you for taking my questions. Maybe just two follow-ups from me on the ACE Management Fund on the hedging tools. Regarding the fees for the new ACE Management Fund, is there a full catch-up effect for the full fees for 2020 this year? On the hedging tools, I'm just wondering, basically those negative fair value adjustments going through the P&L to the same extent that you have shown in your presentation? Thank you.
As far as ACE Management is concerned, the management fees, there is no catch-up effect starting first of January. Actually, the management fees will start as soon as the fund is closed. The closing was done actually yesterday. Management fees will start to kick in starting yesterday, but not January 1st. On your question on the hedging instrument, it will actually fly through the P&L just below the line investment revenue. It will affect H1 investment activity within our P&L below the line investment revenue.
Okay. Thank you. Can I just ask, what exactly are these instruments? Are these put options or what kind of instruments are you using there?
It's mainly futures on Euro Stoxx.
Okay. All right. Thank you.
We will now take our next question from Mandeep Jagpal from RBC. Please go ahead.
Morning, guys. Thanks for taking my question. Just two from me. The first one is on Star America Infrastructure Partners. Henri mentioned that the acquisition completed yesterday. Please could you provide some color on how we can expect fundraising to develop with asset class, and how you are currently thinking about leveraging the North American LP base with Tikehau other asset classes? The second question is more of a general question on demand for alternatives. Given the impacts of the pandemic on financial markets such as lower interest rates, credit spread increases, and equity market volatility, in your view, does this make it easier to raise money for alternatives as returns look more attractive or more difficult as clients defer decision-making to see how things develop?
Thank you, Mandeep. This is Mathieu. I may comment on Star America and Antoine will pick up on your second question. Effectively, we closed the acquisition yesterday. We've been in dialogue with this team and platform for a little while. We disclosed the exclusivity when we reported Q1, the fact that they were in the process of raising their fund number two. Today, the group manages roughly $600 million. They are in the process of raising fund two, which now stands at slightly below $450 million. There's an objective to raise higher than that had not been communicated at this stage.
Clearly, we're hopeful that on the back of this new partnership, we'll be able to leverage not only our LP base to invest with them and effectively the other way around, because there is no overlap whatsoever between their existing LP base and the Tikehau LP base. I think we indicated that after the Q1 that their LP base was 80% U.S., 10% U.K., and 10% Scandi, roughly. To give you a sense very complementary to our current LP base, where we are actually much more modest in these geographies. The two founders, Bill Marino and Christophe Petit, are joining us as partners of the firm. As early as yesterday, post-closing, having a roadmap to effectively start the cross-selling between our two LP base. You want to take the alternative question, Antoine?
Yes. Thank you, Mandeep, for the two question. What we can notice on the alternative demand is that it remain pretty strong across asset classes and across geographies. What we see and what we noticed is that at the end of Q1, pretty large investor, pension firm, sovereign wealth firm, pretty large insurance companies, have put on hold some investment decision because they have to support and to deal with pretty big swing from the market side. For instance, European insurance company had to deal with Solvency II, and as a result, they reduce a little bit their alternative allocation, and then it came back. You start seeing a similar situation with pretty large sovereign wealth fund, and then everybody has probably in mind that Norges has to dispose some assets, some liquid assets. On and on, we think that the demand remain pretty strong.
Investors realize that having less marked market effect is a good thing. They have to trade in that for liquidity, because alternatives, as you know, are mainly private and long-dated assets. After reading H1 and July, more particularly across strategies, so real estate, private equity, private debt, the appetite remains strong. You see we are all looking at what's happening in the U.S. market, which is by far the largest market in the alternative space. We consider that appetite remains robust. Some investors decided to put on hold a little bit, overall, the trend honestly remains pretty strong. Does that answer your question?
Yeah, that's great color. Thank you.
Just as a reminder, it is star one to ask a telephone question. We'll now take our next question from Nicolas Vaysselier from Exane BNP Paribas. Please go ahead.
Hi, good morning to you. Obviously the pace of your fundraising has accelerated in July. I wonder what we should expect for the second part of the year, and if you can give us more color on this. Wondering as well, since the end of lockdown in Europe, how are your interactions with investors going? Is it normalizing on this way? Is the fundraising process normalizing? Final question, could you please update us on the performance of your CLO portfolios? Thank you very much.
Maybe I'm answering your last two questions, on lockdown and CLO performance. Obviously, we have been all going through this lockdown and a very unique and crazy situation. Tikehau has managed to operate really as an entrepreneurial company, and I think we mentioned that during our Q1 AUM, but because the sanitary crisis started in Asia, our office in Singapore has been really in charge of putting all the procedure in place to remain very active very early. What we can tell you now is that apart of London and New York, the bulk of our partners, employees, are working from the office. For instance, we are at 90% in our Paris office, which is pretty unique, because you start seeing more and more firms telling that employees will work from home until September, until end of the year, until early 2021.
Tikehau has been very active and ready, and as we like saying, on the ball. If you have your team on the ground, and also you can work from home, obviously, we've been really ready and focused, and that's why we decided to accelerate a little bit the pace. That's why our July figures have been pretty strong, let's say. You need also to make sure, to answer more precisely your question, we need to make sure that your counterparts are working and are ready to work and are on the ground, either at the office or from home. What we noticed overall is that, it's a different question than the one on the LP, but some pretty large institutions have been more calm, let's say, on doing deals, on preparing materials for investment committee. We've been very active.
Some of our counterparts have been very active, some a little bit less. It depends on the part of the world. For instance, Asia right now, we have, as you know, three offices Seoul, Tokyo, and Singapore are very active. We can say on and on, Tikehau has been very active, and we are active despite the lockdown. Our counterparts, it really depends. Overall, we are pretty satisfied with the trend. Your question on the CLO. CLO, you have loan on the asset side. As you all noticed, the loan index dropped in March and then went back. Obviously, it creates some volatility on our CLO. What we can say as of now, we respect all covenants, and we have no cash flow dislocation, and we remain pretty confident on our CLO business.
We said that we do one CLO per year, a minimum of one CLO per year. We did not have launched one in 2020. By the way, we were pretty lucky or succesful on launching the CLO earlier in the year, because obviously, with the mark-to-market trigger, it could have been very bad to be marketing a CLO in this turbulent time. We may launch one this year.
Maybe I will come back to your first question about the pace of the fundraising. We wanted to give you this post cut-off update in July because obviously it's an important trend in terms of the overall full year. Whilst we're not giving any kind of guidance on the 2020 full year AUM, we are reiterating our target for 2022 at EUR 35 billion. A few comments for H2. As Henri explained, we held the first closing of TDL V or Tikehau Direct Lending number five, and in fifth vintage. That's a very established strategy for Tikehau, and we are hopeful to effectively gain much traction on this strategy. That's on the mature side of the business.
On the more innovative side of the business, we mentioned to you last quarter that we were launching a secondary private debt business, which will be marketed starting at September. That's a new strategy within the private debt activity that will also be appealing to LPs. On the private equity side, to comment, TGE II and T2 are energy transition fund. Not only we extended the subscription period on these two funds to effectively make up for the slowdown of Q2, that lockdown imposed on many LPs. We also benefit from incremental flows into these two strategy. I would also flag an important point for T2.
We received yesterday part of the Tibi program, some of you might be familiar with that, which is a label that has been granted by the French state for innovative strategy, and that will benefit from increased allocation from institutional LPs. That should also sustain that. Last comment, Antoine mentioned the dislocation of the market. We're still in the market with our special opportunity fund, TSO, which now stands at EUR 425 million. We had given some guidance of EUR 500 million target, which we believe we will easily reach in the coming months. That's for overall and more granular details of the H2 fundraising plan. Does that answer your question?
Thank you very much. Yes, thank you very much.
We will now take our next question from Carlo Tommaselli from Société Générale . Please go ahead.
Yes. Good morning, everybody. Thanks for the presentation. I have three questions, if I may. The first one is on the outlook 2020. You remain pretty cautious on the macro environment. I hear you when you say that you don't give more granularity on AUM by the end of the year. Nevertheless, are you able to give more visibility or granularity of the NOPM expected for 2020 at this stage? Second question is on direct investment AUM level. Should we assume further reduction from here or to return in the area of EUR 2 billion? Third question is on Star America Infrastructure Partners, more granularity and color on the price and on the closing date, please.
Thank you for your question. I think I take one and two, and Mathieu will take three. We said that we consider that the environment is fairly unstable and fairly negative despite the stock market rally. What we said is that we see a lot of bankruptcy coming, very bad results, still a lot of leverage in the system. Tikehau Capital has developed a business model whereby we remain fairly granular. The balance sheet is granular, and then our AUM are fairly granular in terms of numbers of funds, and then of underlying companies within the funds. At this stage, we will not give specific guidance on various asset classes and the breakdown of the various asset classes in AUM.
What we can tell you, we've been very focused on that since we launched this firm 16 years ago, to make sure that we are not dependent on one fund or one strategies. We can say that at this stage, we don't have huge flagship, let's say, in terms of size, but also size increase, direct lending is a good example. If you remember, TDL IV is a EUR 2.1 billion, TDL III is a EUR 610 million, the predecessor of TDL III is a EUR 140 million fund. Obviously we are raising the size of the fund. As you noticed, we have now Star America. We have now an ACE Aero fund starting at EUR 630 million. Last year, we closed our first value-add real estate fund with a program north of EUR 600 million. In terms of granularity of fund, we'll add more strategies.
We are launching an impact fund. We still currently market our energy transition fund, which is more or less at EUR 600 million now. I think the strategy that we develop to have various fund, various strategies, I think we'll continue to do that. It does not answer very precisely at this stage the granularity of the various asset classes, but I think that's where we are now. Obviously, on the profitability of the asset management, we are not commenting at this stage on our NOPM, Net Operating Profit of the asset management. Because we are adding more private equity and more real estate in the last few months, obviously the business mix is changing a little bit. When you look at our 2019 figure, you remember that we moved close to 90 basis points on average, which was up.
I think our goal is really to increase that because obviously that's increasing the profitability and the NOPM of the asset management. Obviously, the Tikehau valuation is really the net asset value of the balance sheet and whatever multiple you put on the asset management. I think we are going in the right direction. That's why we decided to reaffirm our 2022 guidance.
Your last question on balance sheet size. The only guidance we gave is that we want to increase the percentage of the balance sheet invested in our fund. If markets permit, private and public, we are happy to take advantage and exit. That's what we did on DWS. DWS is a pretty unique and pretty strong company, and we have a pretty robust partnership, but we took advantage of a good valuation to exit. Same thing for, if you remember, Henri, and it's part of the press release, we had the opportunity to exit our Carrefour financing, which was partially asset management, but partially balance sheet because of the size. We're going to probably, if weather permits, let's say, reduce the balance sheet and increase our commitments in the funds, which give more value retaining and less volatility. Mathieu, I let you answer on SA.
The deal closed yesterday, actually, the transaction has been completed now. We did not disclose details on the consideration price. I'd like to guide you as much as possible on this. If you assume in euros, $600 million, EUR 535 million of AUM. Management fees on such strategies are in the magnitude of 1.5% management fees. If you make an assumption of roughly 40% operating margin, which is obviously some kind of a market benchmark, that gets you to a EUR 3 million EBITDA or NOPM generated by this company. You saw in the past the type of multiple that Tikehau would pay for non-organic growth.
If you assume the low part of the range, let's say 10x- 12 x, that will give you some kind of an acquisition price in the order of magnitude of EUR 30 million-EUR 35 million. We couldn't be more precise, but at least that hopefully guide you towards the acquisition price.
We made sure that Bill, Christophe, and the team are aligned with us, so they will be a Tikehau shareholder, and also, as Mathieu mentioned earlier, they will be Tikehau partners as well.
Thank you very much.
We will now take our next question from Geoffroy Michalet from Oddo BHF. Please go ahead.
Yes, hello. Thank you for taking again my question. Two additional questions. The first one on what you said on the Star America partners. Will they become also shareholders of TCA? First question. Second question relates to your staff in the fundraising section. I just wanted to know how many people exactly, apart from you, are dedicated to raise funds. Thank you very much.
Maybe I can follow up on Star on this one. They will become, when we call partners at Tikehau, effectively, which is today 40 or 45 partners. They're all indirectly shareholders into TCA through the structure that we call Tikehau Management. They will be fully pari passu with the rest of the partners, as well as being Tikehau shareholders. That's one. As far as the staffing and distribution, effectively, we have under the leadership of Fred Giovansili, our partners who join us a year and a half ago now. It's now a global team of roughly 25 people on the sales, distribution, client servicing, and investor relationships. That's roughly the amount of people dedicated to the fundraising, with a local presence in any single countries.
In Europe, in Asia, and now in the U.S., we have a local presence for the client-facing and marketing group, which is mainly centralized in London now.
That being said, Geoffroy, the business unit team are also involved in the fundraising because we think they are the best actually to represent and to explain the performance they've been able to generate.
Okay. Thank you.
As there are no further questions, I'd like to hand the call back to our speakers. Gentlemen, the floor is yours once more.
There are no questions either on the webcast, so Antoine, Mathieu, Henri, I let you conclude.
Thanks, everybody, for your time, your question. We are obviously very happy to continue offline with some of you, and some calls are already scheduled. You can be certain that we remain fairly focused, and the entire Tikehau team remain fairly focused. This new world in uncharted territory will generate a lot of opportunities to raise new funds, deploy in a very selective manner, and help us continue to grow. I think the firm, because of the balance sheet, because of this unique 600- people team and our 13 locations, is fairly well-placed to further develop and expand and continue the profitability on the asset management. Thanks for your time. Thanks, everybody. That's it on my side.
Thank you all.
Ladies and gentlemen, this concludes today's call. Thank you for your participation. You may now disconnect.