Good afternoon, everyone, and thank you for being here to attend this annual general meeting. I have next to me Mr. Antoine Flamarion and Mathieu Chabran, who are the management, Mr. Henri Marcoux, who is Deputy CEO of Tikehau Capital, and Mr. Geoffroy Renard, who is the Secretary General, Vincent Roty, an auditor representing Ernst & Young and others. That's part of Ernst & Young. And Mr. Gilles Magnan , also an auditor representing Mazars, both of them representing the auditors. I'd like to thank members of the Supervisory Board who are with us, and I should also like to welcome members of the Management Board of Tikehau Capital who are here and who will be there for you if you have any questions for them after the meeting.
Let me point out that this AGM is being broadcast live on the website of the company, and you'll be able to see it in replay on the self-same site. It will be for me to chair this AGM, and the tellers representing the largest number of votes who accept to do so, who will be in charge. Based on the list provided by Société Générale , the shareholder owning the largest number of shares directly or by proxy is Tikehau Capital Advisors, who agreed to provide the teller in the person of Mrs. Pauline Gaget. The second largest shareholder is the French Fonds [Foreign language] , and they said they would agree to provide the scrutiny in the person of Mr. Andrea Beneventi. For this meeting, I suggest we appoint Geoffroy Renard, Secretary. Thank you, Chairman.
[Foreign language] , which was in charge of organizing this AGM, told us about the provisional quorum, including correspondence votes. I can confirm that based on this first count, the meeting will be valid both for the ordinary and the extraordinary part because we've more than reached the 20% and 25% thresholds. We have, in fact, 92.6%, and we're delighted to see that we can bring together a large quorum reflecting the loyalty of our shareholders. When we move on to the votes, we will be calculating specifically the quorum for each resolution, but we will give you the final quorum just prior to the votes, and then I can confirm already that the AGM may now rule on all the resolutions on the agenda.
Speaking of which, you may have read the agenda in the documents provided in the convening notice, and so therefore I suggest not to read it out. We will, of course, reiterate the wording of the resolutions when it comes to the vote. And then, of course, you can ask about entering a Q&A. The documents are available on the website in accordance with regulations, and again, I propose not to go through the whole list of documents. As I said, it is there on the desk, but the documents and information provided by regulation was made available to shareholders in due time, and the universal registration document includes the agenda, the draft resolutions, the annual reports, and the reports of the Supervisory Board, and this is also available to you. We have paper copies as well. You may ask for them at Société Générale.
Right, well, thank you so very much, Geoffroy. This is how I propose we proceed. We will go through the company's business for the year 2024, the performance for 2024, and the outlook for the near future for Tikehau Capital. We haven't received any requests for additional items on the agenda, nor have we received any written questions from shareholders in writing. Right after the presentations, we can move on directly to questions from the audience. Having been through all the questions, we will be in a position to vote on the draft resolutions. The year 2024 was marked by two major events. First, we celebrated 20 years. We've been around 20 years. In March of 2025, this company actually reached and passed the $50 billion AUM mark. Although it's a young company, it is doing quite well.
The AUMs were multiplied fivefold ever since the IPO in 2017, which is, of course, the result of the fine work of your teams. These two steps were made in an ever more complex environment with geopolitical and macroeconomic changes, the resurgence of armed conflicts, tensions between states, trade wars in particular, the new tariffs introduced by President Trump, or indeed an unstable political context, not just in France but around the world, has exacerbated the volatility of the markets and the movements toward deglobalization itself, exacerbated by the COVID crisis for companies in which we invest. This is reflected in lesser efficiency of supply and value chains. But in this very unpredictable context, the company was able to show the relevance of its position with a very specific strategy well suited to the present environment. We're in a good position to seize on market opportunities.
We're also taking advantage of renewed interest on the part of investors for Europe and resilient portfolios because they are little exposed to tariffs. I'll show you now a brief video showing the spirit in which we work, a constant quest for opportunities, our determination to channel global savings for sustainable value, and our investment is directed directly to supporting investors.
World, the promise of a great journey. It all started in 2004 with nothing but ambition and the desire to discover new paths in the world of investment. Think big. At Tikehau Capital, we're not just alternative asset managers. We are explorers. As we expanded our global presence, we continue to navigate the ship efficiently. Curious, resolved, fiercely independent. To us, exploring is not about rushing or following trends. It's about making informed decisions and heading in the right direction. We focus on four fields of expertise: private debt, real assets, private equity, and capital market strategies. Together with our client investors, we share a common goal: to guide global savings towards sustainable financial solutions towards uncharted territories. Create, don't compete. Exploring is about creating a link, connecting the dots. Tikehau Capital relies on a global network of local talent with nearly 50 nationalities spread across three continents.
Their extensive local experience allows us to keep our boots on the ground. Our thirst for discovery has led us to become forerunners in specific strategies such as private debt or decarbonization. We are pioneers. Investing is not about conquering. It's about supporting. Supporting entrepreneurs to enable them to achieve their goals because we are entrepreneurs at heart. We speak the same language. Because we're on this journey together, we've chosen to align our interests with those of our client investors by investing alongside them. At Tikehau Capital, we share so much more than investments. We share the same conviction, the conviction that with innovative solutions, we can create sustainable value and drive positive change for society. Continuously searching, understanding, and pursuing, this ongoing drive to discover uncharted territories is our oxygen. At Tikehau Capital, our work is an endless exploration, and we are proud to lead the way.
Right, having seen this very vivid and colorful video, we can make a few comments that directly result from the spirit of our company, which you saw in the film. Tikehau Capital is a key player in the financing of the economy. It's a powerful bridge between, on the one hand, global savings, which is growing constantly because of demographics and because, of course, of population aging, but of course, savings need areas of investment to generate return. On the other hand, you have companies and the real economy looking for funds. So we are the connection between supply and demand. In this context, providing financing, we have three ways of doing this. The first thing we do is to raise funds with institutional investors, such as insurance companies or pension funds that manage global savings, but also private individuals.
The savings thus mobilized are invested in their strategies, private debt, real assets, capital investments, or specific projects that are very carefully selected. The third dimension of this activity, having supported companies throughout the investment, and you're talking here anywhere between three and four years, then we recover the investment through exits or repayment when it was a debt operation. The amounts are redistributed to investors who may then reinvest and continue the cycle. We've had a very robust experience, and in 2024, gross net income was $9.3 billion gross net new money, $7 billion in net new money. The same year, we invested, we deployed EUR 5.6 billion through our various strategies. In the third stage of the cycle, we divested, that is, we exited to the tune of EUR 2.1 billion.
That enabled us to achieve sound financial performance in 2024, including 9% growth of net income before tax. Since 2016, we looked at the growth of the company over the period, and it should be pointed out that on the whole, assets under management grew on average 23% a year to reach the $50 billion mark I mentioned earlier. We're rather proud of that. Now, income from that activity was up 31% per year. So if you compare the $39 million in 2016 and $351 million in 2024, and operating profit from asset management grew 57% per year from $3 million to $126 million in 2024, and we still have some ways to go. This, of course, is past performance, and it is not an indication of future performance, but I'll give the floor to Antoine Flamarion, who will tell us more about relevant value positions.
Thank you and good afternoon. We'll have a first slide on our various lines of business. We are present on all sides of the mid-market, private debt, including property, real estate, private equity, and tactical strategies, real assets, and capital market strategies. The main thing here is that we're diversifying our activities. We don't want to add additional lines of business, but in these five verticals, we keep adding new lines of activity, basing ourselves on our own and our team's track record. How does this reflect in 2024? We have three pillars. Fundraising, we raised $7 billion, which is a record year following another bumper year the year before. We are raising significant funds on what is, after all, a rather challenging market.
You will see looking at the various distribution channels, they have indeed a number of channels, and we are present in multiple geographies, which is what we were able to raise $5 billion in net new money, over $7 billion in gross new money. We've invested $5.6 billion, mostly in credit solutions, because we believe this is a complex cycle. To a large extent, a lot was invested in direct credit, which is less risky, lower return, but almost 76% was in this. Regarding exits, we divested about $2.7 billion in assets. Of course, the portfolio is less mature. We believe that there should be more exits as early as 2025, but there was a sustained pace of exits in 2024. The most important thing is, of course, to deliver performance throughout our cycles.
Again, in all our segments, we are extremely conservative. All our offices, all our teams made it possible for us to seize on the right opportunities. I'll give you one example. There are as many as 9,000 real estate assets, so fine granularity on housing, hotels, commercial property. We will keep being selective and diversified. This is how we can absorb shocks when there are political, geopolitical, macroeconomic, or sectorial shocks. So large amounts of new money, great diversification, and we expect some acceleration this year. Thank you. Let me give the floor to Nina Mastej , who is in charge of the fundamentals underlying our liquid strategies and present them to our customers so she can share with you our expectations, our take on 2024, and expectations in the face of such a complex environment as we have today. Nina? Thank you. Good afternoon, everyone.
I'm delighted to be with you today and to see so many of you in the audience. My name is Nina Mastej . I'm a product specialist as part of our capital market strategies. This is that activity dedicated to listed assets exclusively. So we have open-ended funds with daily liquidity. But before getting into the details of the capital market strategies, let's take a look at the market and take stock on 2024. 2024 was an outstanding year for financial markets, an excellent year for high-risk assets with remarkable performances on the equity market, as you can see on the left-hand side, especially American securities that enjoyed great performances of tech giants in the U.S. In particular, there was great enthusiasm on artificial intelligence. But this was also a good year for the direct credit market.
You can see this on the right-hand side of the chart in Europe as well as in the U.S., both on investment grade, which encompasses the best graded bonds on the market, but also fine performances in high yield, that is, bonds with lower ratings. But there are four main factors explaining the good performance of high-risk assets in 2024. The first thing was the continuous disinflation throughout the year on both sides of the Atlantic. That, of course, indicated there would be lower rates in central banks. Of course, the macroeconomic environment turned out to be rather resilient, especially in the U.S., The third aspect that should be considered is more to do with the companies themselves. In 2024, there were fine performances by private companies. For some of them, they are getting back to more usual levels, but still, by and large, very good performances.
A fourth reason why high-risk assets performed so well last year, there was the monetary and fiscal stimulus around the world in a rather coordinated fashion. All in all, a very good year in 2024. But because there's always a but, the year 2025 is starting on a rather different note. There is, of course, a new momentum, especially since the election of Donald Trump in the U.S., The big issue, of course, right now is about the trade tariffs in the United States. Maybe we can move on to the next slide. Of course, earlier this month, you may remember the Liberation Day that caused a shockwave on the financial markets, revealing a regime change. At least we expect more uncertainty, more announcements, more surprises, good as well as bad surprises at a time where interest rates remain extremely high.
As you can see on the left-hand side, you can see sovereign rates, tenure rates in blue for U.S. rates and orange for German long rates. Of course, the safe havens for U.S. Treasury bonds and the U.S. dollar are both now being challenged. So we expect a more volatile year. Indeed, the past few weeks were a case in point. This is not necessarily bad news because in any market environment where there's more dispersion, that brings about more investment opportunities, provided you can identify them and you have to be highly selective. That requires a lot of sound homework, as it were. You need to have a very rigorous investment process. Of course, we try and do this on a global scale at Tikehau Capital throughout all our verticals, especially as regards capital market strategies. Where were we?
Yes, capital market strategies. As I said, we are only investing in listed assets. We're looking at about EUR 6 billion in AUMs with dual expertise bond funds. We invest in the European high yield. So investment grade as well, but also financial bonds. Financial bonds are issued by banks, of course. We are conducting a conviction strategy. I mean, at the heart of our reasoning, we have a very thorough analysis conducted by credit analysts. This is what enabled us to raise significant funds in our capital market strategies. There were fine performances from our various funds, including, of course, the flagship funds, Tikehau Short Duration , but also the dated funds, those that contributed to new money. There was Tikehau 2027, which now has more than EUR 1 billion in AUM. So we have a know-how in terms of flexible equity funds.
We have Tikehau International Cross Assets that invest both in equity but also in direct credit. This is wealth management and asset management in various market configurations. Let me introduce the latest Tikehau European Sovereignty Fund. This was launched at the end of 2023, and that considers only listed European shares, European equity, this revolving around the European sovereignty. This is a theme we have been very loyal to over the past few years through our private strategies. That involves our know-how, but we've extended this to listed assets with this new fund. Thank you so very much, Nina. I'll ask Mathieu Chabran to tell us about the group's strategy and the outlook. Thank you, sir, and good afternoon, everyone. I'll just repeat what you saw in the video, starting with our multi-geography platform, as you can see on this map.
This is quintessential in this asset management business. This platform is becoming more and more international. We've invested in local offices, first in Europe, but everywhere in Western Europe. We also have offices in Asia, North America, and more recently in Israel and the Middle East. In 2024, two new offices, the 16th office in Montreal, Canada, and a 17th office in Hong Kong to reinforce our position in Asia. This is, of course, our entry point to China. So our teams are more and more international. We have as much as 54% of our professionals located outside France. This global platform, of course, supports our fundraising activities, our customer relations, but also new sources for new investment opportunities. In 2024, two-thirds of net new money was raised with international investors. End of '24, we had 44% of our assets, about $22 billion coming from abroad.
For the fourth year running, half of the funds came from international clients. That reflects on this international expansion, not just in Europe for the past 12 years, but also, as I said, in the Middle East, North America, and Asia. Likewise, if you look at our customer base, we have made significant inroads to meet the demand of private clients. We will discuss this with Celia and Margaux. We'll focus on that. This is private wealth services. In 2024, one-third of the funds were raised with private investors, with custom-made solutions and partnerships in all our solutions in direct credit. We have EUR 1.3 billion raised since these were introduced. Our digital platform, Opal Capital, was very successful. Almost EUR 240 million were raised in a matter of quarters and a few months. About one-third of our assets come from high-wealth private customers.
The other driver is our investment portfolio. If you look at our own funds invested in our own strategies alongside our customers, as you can see, this is a key strategic asset. Of course, we invest in our own strategies, and that is what makes us so special. We invest alongside our customers. We have an alignment of interests. This is rather unique in this industry, not just in Europe, but worldwide. We account for more than 10% of all our assets under management. At the end of 2024, 75% of the investment portfolio was in our own credit and private equity strategies, but also real assets and capital market strategies. We're looking at almost EUR 3 billion. You can see on the right-hand side, a fairly balanced distribution in the various asset classes.
As I was saying earlier, we are the first clients of our own investment strategies. Of course, the quality of investment is quintessential because we're not just a broker acting on behalf of our customers. It is your own equity and, of course, value creation for shareholders that is at stake here. I said the alignment of interests. Of course, we have skin in the game, and this is a differentiating factor of this company. This is in a unique alignment with our customers, and that's as part of our own DNA. So you find this on three levels: top management itself, but shareholders, but also clients see eye to eye. But that's because we invest in priority in our own strategies. As I said, management is the largest shareholder of the company. We are building a relationship of trust with our shareholders and our customers.
Of course, that meets very stringent requirements of loyalty, trust, and in all the criteria and investments, these values are forefront. Prior to closing and giving the floor to Margaux and Celia, a few words about our achievements in terms of sustainability. That is also part and parcel of our value-creating model. There have been political and geopolitical upheavals. Just because there's a new administration in the U.S. doesn't mean we've given up on one of our priorities, of which we were pioneers as early as 2014. We invest in funds rated under Article 8 and Article 9. They were up 15% to reach EUR 33 billion almost. A few indicators of the sustainability of our portfolios at the end of 2024: 50% of all companies in our portfolio in private equity have a roadmap for sustainability.
Throughout the year, 65% of new direct lending operations and corporate lending, so that's lending to companies, involved an ESG ratchet mechanism. That is, if you reach certain levels of non-financial criteria, you have a preferential treatment. Regarding direct impact, we have EUR 4.1 billion AUM allocated to climate and biodiversity, so up 37% in one year. At the beginning of 2025, we're in a good position to go past the target of EUR 5 billion for the year. That performance in sustainability has been recognized by this industry and by our own peers. Sustainalytics rated us amongst the best players in this field, and we've received several rewards in direct lending, private equity, and direct credit. In any case, we have several items left in our strategy. We want to develop our flagship strategies. We want to ratchet up innovation worldwide.
Of course, we are becoming more and more international. We have a very mature platform, and every euro, every dollar raised has a direct effect on our P&L. So we want to become more profitable, but our objectives remain relevant in spite of recent developments. We believe that this is only one stage along our own long-term strategy. Thank you, Mathieu. As Mathieu explained earlier on, the high-wealth or private wealth solutions is now a very promising segment. We'll ask now Célia Hamoum and Margaux Buridant who are in charge of this to give you a presentation. Cécile, take it away.
Merci beaucoup. [Foreign language] .
Thank you very much and good afternoon. Thank you very much for giving me this opportunity to share with you what we do every day for our private wealth customers.
I'm in charge of private wealth solutions at Tikehau Capital , and I'm going to walk you through how we support and innovate for our private wealth clients. We work with them directly, but also through intermediaries, through banks or digital platforms. We do that across 17 geographies in Europe. We do that also in America, in the US, as well as in Asia and the Middle East. Regularly, we organize events, and we have communication events to keep the relationship going with our private wealth clients. We've got a platform that brings together different areas of the group. First of all, we've got our approach with intermediaries, like private banks, for example, who cover our clients. To meet a demand for alternative products, we've designed account units-like products so that we can have private debt in life insurance products. We've launched a referenced fund at Suravenir.
This year, we've created a new unit of account for private debt, but for our direct approach, where people can invest from EUR 40,000 upwards. We are also going to be launching a new unit of account for security, cybersecurity, for defense, so that we can contribute to the resilience of local economies. We also have Sofidy, who cover banks, especially for real estate, and they offer SCI, SCPI, and such products. There is, for example, Immorente, one of our historical SCPI, which has more than EUR 4 billion under management. This is really a testimony to our robust know-how. Then there's our direct approach, where clients can directly invest into our funds, into our private equity. They've got access also to our club deals and co-investments.
The idea is that we can build tailored funds depending on their criteria, with special mandates for families, for example. We also offer a dedicated management through Sofidy. Here, we support companies and families in structuring their wealth. We can help them with tax-related issues, help them with investments, and such like. This is what we do for our clients on a face-to-face basis, so to speak. Then there's the digital pillar of what we do. We launched Opal Capital. It's a structure for financial advisors and for our clients so that investment is easier to understand, especially for private equity and for debt. It's very simple, actually. It's a website where you can go and check some investments, and you can select some funds from EUR 100,000 upwards. For example, there are some funds devoted to aeronautics, and that's easily accessible through the platform.
You can also find some open architecture funds like Goldman Sachs, Lexington, and others. So we have many initiatives underway at Tikehau to serve our ambition to become a reference for private wealth clients and by using all the different parts and areas of the group. Thank you very much. Now over to Margaux for the end of this presentation. Good afternoon, one and all. Thank you very much, Celia. My name is Margaux Buridant . I'm also in charge of private wealth solutions, and I'm based in New York and very happy to continue with this presentation. Now, as we've just heard, Tikehau Capital is a global platform or a multi-local platform, as we often call it, with a desire to be as close to the needs of our clients as possible with the right products and the right mix.
One of the objectives of private wealth solutions is to make accessible our quality investment strategies to our private wealth clients. Currently, half of the world's wealth is in the hands of private wealth clients. What does that mean for Tikehau? Well, as you can see, at the end of 2024, private investors make up EUR 14.9 billion or 30% of our AUM. I recognize some investors in the room here today. We also see that there is a strong uptick over the last five years, plus 143% of AUM from private wealth clients. That's because we've been able to innovate at Tikehau Capital . We started out with very strong convictions and beliefs. We've been pioneers in energy transition, for example, in defense or European sovereignty.
We're very much ahead of the curve on that, but we also are able to innovate when it comes to finding channels for new inflows of money. For example, we have unit of account products for private debt, so we were very much ahead of the pack here. But also, we work with insurance companies like CNP Insurance or MACSF, and they raised more than EUR 1.3 billion in commitment since we started working together. We also have strategic partnerships with international players, large international players, which allowed us to build a global distribution ecosystem and to grow the Tikehau franchise abroad. There's Fideuram, for example, in Europe, with whom we launched a dedicated product for private debt and real estate, which raised more than EUR 400 million in commitment from the Fideuram client base. And there's also Banca March , a good example, in Spain.
In 2024, for Asia, we also launched very strong partnerships like Nikko Asset Management. They are one of the leading asset managers in Japan with more than $240 billion AUM, so a partnership on distribution, on joint ventures. And also UOB, with whom we launched an Asia-Pacific private debt fund. They're one of the biggest brokers in Southeast Asia, UOB Kay Hian , that is. For the U.S., we're very happy to say that we are under discussion with BNY for a distribution agreement via their wealth management network. This strategic partnership will allow us to plug into a broad and deep network of private wealth clients across the U.S., and that would increase our footprint in the United States. We have also the support of family-led holdings like SFPI, for example, [Foreign language] , with whom in 2024, we launched a co-investment fund, Tikehau Partners.
To keep you up to date, we continue to innovate and launch new initiatives with a unit of account dedicated to defense because this is a strong belief of Tikehau for a long time now. As Celia mentioned earlier, there'll be a European private credit fund, semi-liquid, that can be accessed from EUR 40,000 onwards, which is going to be very useful for clients who need some flexibility. Tikehau, to wrap up, continues to support and to innovate in the private market, be it through the platform or through these strategic partnerships that I've mentioned, and also via innovation. Thank you very much for your kind attention. Back to Mr. de Labriffe. Thank you very much, Margaux. We'd now get to ask Henri Marcous to walk you through the financial accounts for 2024. Thank you very much, Mr. Chairman, dear shareholders. Good afternoon.
I'm very happy to be with you this afternoon. I suggest that we take a look at our financial results for 2024, and I suggest that, like Mathieu, we start off with our asset management business. First of all, I'd like to take a look at the trajectory of our growth. We've got the management fees, which is dependent or reliant on our AUM. Since we have more AUM, we also have more management fees. You can see it on the screen here. They reached $337 million for 2024, up 8% compared to 2023. If you look at it over a longer period of time, between 2016 and 2024, it's an average annual growth rate of 31%. Second driver of revenue for our company is the performance-related fees and overperformance fees. They are pegged to the performance of the fund that we manage.
There's also the overperformance fees that are particularly attractive. These fees made up EUR 14 million in 2024, in keeping with the performance of the underlying funds. More AUM, better-performing funds equals more revenue overall for 2024. Now, let's take a look at profitability for asset management. Hold on. Can we maybe go back one slide? There we go. Profitability of asset management. Now, profitability is the operating result, so all of the income that I've just outlined, the management fees minus the operational costs. As I said earlier, our income went up 8% compared to the previous year, with a good control of operational costs, which allowed us to grow our core FRE of more than 7%. It actually reached EUR 132 million in 2024. That's for the operating results.
Now, compared to our income, we have a 39% margin, which is stable compared to 2023, in spite of the ups and downs of 2024. Now, moving on to our investment portfolio. Mathieu earlier walked you through the investment portfolio with the EUR 4 billion, the majority of that invested in the Tikehau strategies. Here, you've got the income from that portfolio for 2024. You can see that the revenue for 2024 reached EUR 207 million, a strong increase compared to 2023, up 16% because we were at EUR 190 million in 2023. That increase is driven by the better performance of funds, credit CLO, private equity as well, which then translated to a positive impact on the balance sheet. Additionally, this income comes in two different categories. There's in blue, EUR 202 million, that's what we distribute.
The non-realized income, which is fair value for the different assets on our balance sheet under the IFRS standards, is about EUR 5 million for 2024. It's important because that EUR 5 million is there in spite of our funds, those that had a negative impact on our performance for 2024. Good performance overall and great stability in spite of the unrealized events. Looking at the numbers, you can see that we have continued to grow. Our operational results stand out at EUR 126 million. The portfolio performed well, EUR 207 million, and a net result before tax, which is up 9% compared to 2023 and stands at EUR 209 million. Net result group share reaches EUR 156 million with a higher tax rate, which stands at 25% currently. Good operational performance and plus 9% for the net results before tax.
For the consolidated balance sheet, total of EUR 5.2 billion, equity to the tune of EUR 3.2 billion, which captures the very unique model of Tikehau Capital . Short-term financial resources to the tune of EUR 1 billion. 78% of our debt is linked to CSR criteria. And then a financial rating for Tikehau Capital that are investment grade, triple B minus and a stable outlook. Now, just to continue with this presentation, we've talked about the good operational performance of your company for asset management, for the financial balance sheet. Here you can see that the dividend has grown, and we're actually proposing an 80-cent dividend per share, up 7% compared to 2023. Here again, it is higher than our commitment that was made by the company after the IPO.
Now, to conclude this presentation, I'd just like to say that the dialogue that we have today is very important. It allows us to share our vision about the future in 2024. There were three moments of such discussion in Nice. There was the Investor Day in November 2024. So we'll be repeating such initiatives. We'll come and see you. We'll come and answer your questions and keep the relation going. We'll have a shareholders meeting also in Bordeaux in June. Thank you very much, Henri. I'm now going to ask Mr. Gilles Magnan from Mazars to take the floor on behalf of the statutory auditors. Dear shareholders, good afternoon. I'm going to walk you through the reports that we produced for 2024.
This year, we published four reports: one on annual accounts, consolidated accounts, a report, and sorry, a new report on sustainability that, well, is a first for your company. Now, regarding the annual accounts, we had a certification report with no particular comments or observations, and likewise for the consolidated accounts. So we have certified these accounts without reservations. Regarding the other issues, there is nothing to report. Finally, regarding the new report, it's a certification report on sustainability metrics and publication of information under Article 8 of the EU Regulation 2020/852 . So it flows from European law. Our report has got three parts to it. In the first part, we said that there were no mistakes, omissions, or anything inconsistent with the ESRS. That means essentially that the rules set out to follow a number of processes, and these processes were indeed abided by Tikehau.
On the basis of the verification that we've made, we haven't noticed any mistake, omissions, or inconsistency regarding sustainability in the sustainability report. That means that we have checked the quality of the information produced by Tikehau in their report, and we haven't seen any mistake or omission. Finally, on the basis of the verifications that we performed, we haven't seen any mistakes, omissions, or inconsistencies regarding the rules under Article 8. It's the rules about the taxonomy and the Capex and Opex alignment with the regulation. There, once again, we have no comments to make. Thank you very much. I'm now going to ask Mr. Geoffroy Renard to share with us the resolutions that we'll be voting on at the end of today's proceedings.
Now, regarding the draft resolutions that we'll be voting on later on, I'd just like to say that there are four usual resolutions that flow from the presentation you've just heard from the statutory auditors. There'll be the approval of consolidated accounts, then the approval of the dividend that Henri spoke about earlier with the EUR 0.80 dividend, and then fourth resolution on the authorization of agreements governed by Article L226-10 of the French Commercial Code. That's it for the first four resolutions. Now, regarding the lineup of the supervisory board, we have three resolutions that are proposed this year. First of all, the appointment of Mr. Pierre-Henri Flamand as member of the supervisory board to replace Mr. Jean Charest . That's resolution number five. Unfortunately, Mr. Flamand can't make it today since he is abroad, but he'd like to thank you in advance for voting for his candidacy.
There will be two terms that are up for renewal. That's resolution six and seven. The term of office of Mr. Maximilien de Limbourg-Stirum and the renewal of the term of office for the Fonds Stratégique de Participations , who are scrutineers or tellers, rather, for this meeting, and Ms. Florence Lustman . A word now on the governance of Tikehau Capital . It's a company with an executive management with Mr. Flamarion Chabron, who is with me here this afternoon, under the supervision of a supervisory board made up of 11 members. You have 50% of independent members, which is much more than set out in law, 40% of women in keeping with legal requirements. In addition to that, in 2024, the participation rate at the supervisory board, well, the supervisory board meeting was higher than 95%. So very high presence rates for our members at the board.
We have got two committees. We've got a risk and audit committee with three members, two of which are independent, and a sustainable and governance committee, and an appointment and compensation committee that also do some supervisory work. That's made up of three members, two of which are independent. That's pretty much it for the lineup of the board. You've got them up here on the screen with the 11 members. You have Mr. Charest , whose term comes to an end today, and we suggest to have Pierre-Henri Flamand to replace him going forwards. Maybe we could also add that a lot of these members, all of these members, are experts in financial matters, as you will have understood by reading the background information on their experience to date. Moving on, on the draft resolutions. Bonjour.
For resolution number eight, you asked to vote on the compensation policy for managers. What is on offer here is basically the same compensation policy as we had last year, approved at a previous AGM that was fully endorsed. We have a fixed part of the compensation, EUR 1.265 million per manager per year, and a variable part, and that is exactly the same structure as last year. The target amount is EUR 4.2 million per year. That's the maximum amount. There are rules for that compensation to be vested. There are a number of performance objectives that have been set, including you have additional carried interest provisions as well.
You have 47% of, well, 40% is based on financial criteria, 40% based on the share price in the current year, and three operational criteria, one on the net new inflows, the level of related earnings to the tune of 10%, and one last criterion on the return on equity to the tune of 10%. The remaining 25% are non-financial criteria. You have three items, equivalent items. You have assets under management with a biodiversity and climate component. You have a ratio based on the number of companies that have an ESG ratchet, as Mathieu mentioned earlier on. You have the ratio of women in investment teams. If you then pursue resolutions 9 - 13, especially for executive officers, you have the compensation for members of the supervisory board. That's resolution number nine that was approved last year. This remains unchanged compared to last year.
You will be asked to vote on items of compensation included in the report on corporate governance, and you'll find this in the URD. That's resolution number 10. You have two resolutions to do with the compensation either allocated or indeed paid to each of the managers in the year 2024. So these are resolutions 11 - 12. Let me just remind you that for the variable compensation of 2024, you have EUR 810,000 for each of the two managers. And this, of course, all the criteria were considered for the year 2024 before this bonus was allocated. And then there are two items of compensation either paid or allocated for the year 2024 to the Chair of the Supervisory Board. That is resolution number 13. For resolution number 14, you will be asked to allow management to buy back the company's own shares.
You will be asked to vote on delegation of authority on terms unchanged compared with last year. So I won't go through the details because we have the same terms and conditions. At 31 December 2024, the company owned 2% of its own capital in treasury shares. Such shares may be used to implement the buyback program for the year 2024 and 2025 for the granting of free shares either to employees, executive officers, or for external growth operations, or indeed with a view to canceling them altogether. You have one final resolution for this AGM for the extraordinary part, which proposed to change Article 10 of the articles to make it consistent with recent legal developments. There's an act of Parliament of 13 June 2024 allowing the board of directors, the supervisory board, to make decisions using a written procedure.
This decision-making process is on the vote. Right. Thank you, Geoffroy. Now I suggest we take on questions. This is a Q&A session for any questions that you might have. We will ask you to introduce yourselves before you put your questions so that we know who's talking to us. Yes, we have a very first question here. Hello, my name is Pierre Grosbar. I have 1,900 voting rights. Mr. Flamarion, if you get a phone call from Larry Fink saying, "I'm prepared to buy back Tikehau at a price of so many euros per share. I keep you as CEO and with Mathieu as vice chair." What's the answer? Yes, starting at which amount? The other question, why is Tikehau still being listed? I invested in a bond-backed fund at 30%, and the other shares have almost nothing.
Three quarters of the company I invested in your own strategies. So I'm wondering, what's the point for shareholders for the company to be listed, even for yourselves, because you are a shareholder as well? There's no market on mid-market companies, on mid-cap companies. It's not likely that things will change. For the past 40 years, we've been trying to develop a stock market for mid-cap companies. For the past 40 years, we've been going from one failure to the next. If you were to organize an LBO with funds or big families, you might as well come out of the listing at a worthwhile price, and then we'll be happy to reinvest that money in funds that will be more successful. Thank you for this question. Maybe top management will wish to answer. Thank you for these two questions.
They are connected, aren't they? The first question is, in the financial universe, alternative management being developed by this company is becoming more and more attractive. Indeed, Larry Fink, or rather BlackRock, bought GIP in infrastructure and HPS in private debt. But you have a number of transactions. There have never been so many transactions in alternative management. Wendel, close to here, bought two companies in 2024, Monroe Capital in credit in the U.S. and IK Partners in private equity in Europe. So the first thing, and the good news, is that alternative asset management is becoming more and more attractive. Europe is becoming attractive again. So your company is attractive. It does happen often that we get calls. I mean, these are just calls. But I can assure you that Tikehau's growth and the performance of its funds are highly attractive to many people.
The second point is, what's our price? Is there a price at which we would consider selling? Even if we are our own main shareholder, meaning not just top management, but employees, we have fiduciary duty. If we have an offer, we'll consider this on behalf of all the people in this room or people represented. That is all shareholders. But as you know, we are entrepreneurs. For now, what we propose to do is to keep growing. We went from $4 million - $50 billion. We started from zero profits, $3 million in asset management, to $133 million this year. So we're rather satisfied that our teams and our partners are going the right way. We are very confident in the long and medium term that our company will end up being bigger in terms of asset management.
We have $500 million targets for profits, but I think we could reach $1 billion in profits. Before we decide whether to sell the company, and for now, we are entrepreneurs and developers, and we propose to keep developing our company, growing our company, especially because we have shareholders and we have, as I said, the fiduciary duty. Is there a price at which we would consider? I'll answer your second question. Why are we listed at all? We decided to go public because in this business, for reasons of transparency, of growth, it's best to be seen as a listed asset management rather than an unlisted boutique. We have an entrepreneurial vision and a long-term vision. Of course, we're not happy to be worth EUR 18.94 per share when we listed ourselves at EUR 21.
Of course, we will be paying a higher portion of dividends. But if you look at the valuation of Tikehau as a company, we have our own equities invested in our own funds, $3.2 billion. And then our asset management business from 2016 to today generated from $3 million - $126 million in profits. If you look at alternative asset management, I listed assets I listed for examples, but say the companies were bought at a price anywhere between 15 and 25 times their profits. So if your profit is $130 million multiplied by 20, you're looking at $2.6 billion, and that keeps growing. So the sum total of all the parts, the $3 billion in equity plus 20 times, for the sake of the argument, the operating profits, we're looking at $7 billion or $8 billion, and that's EUR 40 - EUR 45 per share. So we know we are being undervalued.
It is a bit unpleasant, but we are building over the long run. As some pointed out, we have to disclose purchases of management. At that low price, we are buying our own shares. We believe they are being undervalued. It takes time, but we have decided to be listed because this gives us access to the capital markets. When the tariffs were announced, we were able to issue a six-year bond which covers all our debts. We owe nothing for the next six years. That helps our brand because being listed, because if you go to Korea, Abu Dhabi, Tel Aviv, or Montreal, it's much easier to say, "We are listed. We only were $3.2 billion on the stock exchange, but we have a brand." We compensate our employees to some extent with a script with free shares.
If we were dealing with a non-listed system, it would not be as attractive. Being listed is cumbersome, admittedly, but it's true about Europe in the capital markets. If you are a company with less than $10 billion in market value, not everybody will be interested in that. Things might change because, as I said, Europe has become attractive again. Mathieu can say a few words about that. He was in Asia just now, and all Asian investors want to invest both in listed and unlisted companies. We're patient. We keep working. We know that work pays off. This is how we built Tikehau over the years, over 20 years. Thank you, Antoine. Mathieu , you want to add something? Regarding the markets in Europe, your comment is quite accurate. Indeed, this has accelerated with passive management, ETF, or other index-linked funds.
There is an anomaly here. I mean, what is available? Most savers go to ETF funds because the management fees are six basis points. These are procyclical. Procyclical ETFs cannot be involved in IPOs. Traditional funds, as we knew them, and here I speak under the supervision of our head of investor relations, Théo Dohin . Louis can correct me if I'm wrong, but this is drying up. The market, as you pointed out, doesn't work properly. IPOs are essentially given to hedge funds that generate fast money. As a result of this, there's a worrisome figure, the year 2024, for Euronext. That is our listing market. It's not just Paris, it's also Amsterdam, Oslo, Milan, Brussels. Anyway, you have EUR 4.9 billion that were raised over these six markets for 53 companies. You work it out, you do the math.
On the one hand, we find that we have to consider this as entrepreneurs. We're optimistic with this. In a way, it's good news for Tikehau's activity because we have to provide funding to these activities, either in debt or equity. Indeed, it could be something it may not be structural. It may be due to recent developments because over the past five years, for every dollar or euro invested in the world, you had 80 cents invested in the U.S. For listed equity, well, you had the NASDAQ. But also because in private markets, it was the same thing. People wanted to see that Chinese sovereign fund was selling private equities to the U.S.
The tariffs were an excuse to recognize that the US was getting three quarters of global flows, whereas they do not account for three quarters of the global economy. For Tikehau, we have reached a size and maturity. We talked to these people. The day after tomorrow in London, we have a due diligence of the major Asian sovereign fund with the leader coming for the first time. We were talking to them. We've been talking with them for the past 10 years. Cécile can confirm this. For our private debt business, we had another Asian sovereign fund that we met on January 15, 2015. I remember that. Cécile saw them again a month ago. Two hours after the meeting, they wanted to meet us here on May 29 for due diligence purposes.
It's a long story, but this excuse of tariffs was a wake-up call for many investors and asset owners to consider that there should be a reallocation. Tikehau is well positioned to take advantage of that situation. Of course, I can't compare everything, but if you look at the best in class, KKR in 2008, they were listed, and then others that were listed in 2012. It took them 8 - 10 years. I know it may take time, but for the market to understand the model and the three aspects, including the balance sheet, give some cap earnings. Just an anecdote, on March 7, 2017, on the day of our IPO, there was a trade paper that gave a beautiful story. We were very happy to read this with Antoine. At the end, they had our recommendation at the end.
The recommendation was, in the lack of comparables, stay away, create, don't compete. Sir, yeah, Jean Nair, individual shareholder, on page nine of your book on carried interest, that is, you have 53% that went to the company. Do you expect that 53% figure? Sorry, it's in the annual report. This 53% of carried interest, is this going to change over time? Last year, you had $2.1 billion in realizations. Can you give us some idea on the annual return on equity? Regarding capital, there was capital share capital. You increased and reduced capital to pay for Sofidy plans and such like. How can you have both a capital increase and capital decrease? Why not use your treasury shares? That would be simpler, wouldn't it? If I may answer the first question on your carried interest, that is the fee given to asset managers.
We have the same rule. 53% goes to the listed company. That hasn't changed. We don't propose to change this. Indeed, 100% of the performance fees on CMS are directed to the listed company. Henri and Geoffroy can answer the two other questions. On the $2.1 billion in realization, upwards of 70% were direct credits. So they were repayment. We were looking at anywhere between 6% and 10%, give or take a few exceptions. Yes, a significant and growing part out of the $2.1 billion were realizations in private equity. Our fund, Preligens and Cybersecurity, became Safran Artificial Intelligence. There, the realization was three times the amount invested in aeronautics defense. There were two major realizations, Brown Europe and Desco, again, between 2.5 and 3 times the capital initially invested. So the growth trajectories were quite significant in private equity.
On question number three, it's a technical question. I quite agree. It is a bit odd to go through both capital increases and decreases, but in accounting terms, that creates less volatility in our income statement. That's why we do that. Another question in the middle. François Tenu, I'm an individual shareholder. You mentioned defense as an area of investment. Were you under pressure not to invest in that industry? More specifically, more generally, are there other industries that you have ruled out? The defense industry, and indeed, other themes like decarbonization are part of our beliefs. These are not new beliefs. They were developed as early as 2017, 2018. These beliefs, these convictions were then supported by clear decisions. That is, recruiting teams, providing financial resources.
On issues of sovereignty and defense, our belief, our conviction in 2017, 2018 was reflected significantly with EUR 500 million on aeronautics, civil, cybersecurity. A large amount was invested on these companies. The defense industry is a recurring theme, which is very, of course, it's now very trendy because of recent developments where over the past five years, more than EUR 1 billion were invested in about 30 companies, of which we have shares, 25,000 employees on all the defense industry value chain. Of course, initially, we didn't start off on this, but now we keep investing and we keep believing in the defense industry. In the near future, indeed, we have a unit-linked fund for private investors who can, private individuals, they will be able to invest anytime between July and September to invest through life insurance companies on these companies.
More specifically, are there where we are under pressure, as Henri said, we have strong convictions as to where we want to invest your company's capital and where does it make sense in economic terms and where does it make sense in terms of sovereignty. Initially, our investors were not too keen on this or that kind of asset class. But likewise, with decarbonization, early in 2018, many investors said, "Why should we do this? We're not going to invest." Then it became more fashionable. Likewise, in defense, we had very little traction. Few investors were interested. Now we have many. This is how we built Tikehau . We innovate, we have beliefs, and then we try to act out on them and provide performance to investors. This is how we get our business growing. Thank you. I can see another question. Sir, yes?
Sorry, in the annual report, I didn't see anything about cryptocurrencies. Is that one of your beliefs as well, one of your convictions? You also said you might be listed in the U.S. Can you tell us more about that? Regarding cryptocurrencies, this is one of our known beliefs. That is why it's not there in our annual report. There's no exposure to cryptocurrencies. Regarding being listed in the U.S., this is in line with what we said earlier. This is the sort of thing we think about constantly. It is our fiduciary duty to maximize the value of the company. Of course, this is a much more mature market in the U.S. So we've been thinking about this. In fact, at the end of last year, there was talk about this in the media. Things have changed since then.
After that paper was published, the head of the London Stock Exchange called us up in a very proactive way. The markets themselves are victims to illiquidity. We're constantly thinking of the best ways, the best techniques we can use to maximize the company's value. Thank you. I couldn't see you. I had the lights in my eyes. I'm an individual shareholder. I have a question about private equity. The valuations seem to be high. There have been acquisitions that were conducted at a high point of the market. You have many companies that are stuck now because the market is volatile. What is your position at Tikehau ? One point, the valuations in our businesses are regulated for private equity. We have international private equity valuations criteria.
It's a multi-criterion assessment where we compare similar companies to see how they are valued, where their transactions, where they're listed companies, what are the multiples. We also use DCF, discounted cash flow methods, enabling us how we can expect the company to perform in the present macroeconomic circumstances. Over the past three years, there have been changes in interest rates and inflation. The past 15 years have been more stable in terms of interest rates. But now, value creation in private equity is changing. For the past 10, 15 years, value creation was related to the use of leverage, which at Tikehau we used, we had less use of. Now we are looking at value creation for portfolios. That is what you can provide to companies inside our portfolios, how we can support them, how can we help them grow.
There's a change of paradigm on private equity. We're refocusing on our companies in the portfolio, and we're using less leverage in value creation. Now, there are companies inside that carry funds and that want to disinvest and can't manage. But it's maybe to do with valuation, but it's also to do with the performance of the companies. If you want to dispose of a company, it has to be doing well. It has to have a positive outlook. I give you three examples of realizations on private equity operations. When the company is doing well, it has a good performance. Then you're in a good position to sell, to dispose of it. Thank you, Henri. All right. I believe the time has come for us to vote on the resolutions. We will go through them one by one. We won't go through all of them.
Geoffrey, we can look at the final quorum, 92.674%, 333 shareholders. This vote is conducted on, well, it's raise your hands to vote. So we will count your votes on a hand-raising mode. La première résolution.
First resolution, approval of the annual financial statements for fiscal year ended 31st December 2024. It is approved. Second resolution, approval of the consolidated statements. Anyone against? Abstentions? It's approved. Third resolution, allocation of results for fiscal year 2024. Against? Abstentions? Approved. Fourth resolution, review and authorization of agreements governed by Article L. 226-10 of the French Commercial Code. Against? Abstentions? Approved. Fifth resolution, appointment of Mr. Pierre-Henri Flamand as member of the supervisory board to replace Mr. Jean Charest. Anyone against? Abstentions? It is therefore approved. We'd like to congratulate Mr. Flamand, who's probably watching from home. Renewal of the term of Mr.
Maximilien de Limburg Stirum as member of the supervisory board. Anyone against? Abstentions? It is therefore approved. Congratulations to Maximilien. Seventh resolution, renewal of the term of office of Fonds Stratégique de Participations with Miss Florence Lustman as its permanent representative at the supervisory board. Anyone against? Abstentions? It is therefore approved. Congratulations to Florence. Eighth resolution, approval of the components of the compensation policy for managers. Anyone against? Abstentions? It is therefore approved. Ninth resolution, approval of the compensation policy applicable to the supervisory board. Anyone against? Any abstentions? It is therefore approved. Tenth resolution, approval of information referred to in Article L. 22-10-9 , paragraph 1 of the French Commercial Code. Anyone against? Abstentions? It is therefore approved. Eleventh resolution, approval of the components of compensation paid for financial year 2024 for AF&Co Management manager. Anyone against? Abstentions? It is therefore approved.
Twelfth resolution, approval of the components of compensation paid to MCH Management manager during the 2024 financial year. Anyone against? Abstentions? It is therefore approved. Thirteenth resolution, approval of the compensation for 2024 to the Chairman of the Supervisory Board. Anyone against? Any abstentions? It is therefore approved. Fourteenth resolution, authorization to be given to the managers to trade in the company's shares. Anyone against? Any abstentions? It is therefore approved. Fifteenth resolution, amendment of Article 10 of the statutes, amendments to the procedures for deliberation within the Supervisory Board. Anyone against? Any abstentions? It is therefore approved. Sixteenth and final resolution, powers to carry out legal formalities. Anyone against? Any abstentions? It is therefore approved. Thank you very much, one and all, for your presence this afternoon. Thank you very much.