6 reasons to invest in Private Equity with Altaroc

While popular with institutional investors and wealthy families, Private Equity remains a little-known asset class.

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Reason 1

Private Equity is one of the best-performing asset classes, both historically and over time

Private Equity is an asset class favoured by institutional investors and the largest family funds.

+16.4% over 10 years for industry, vs. 6.30% for public markets*.

*Source: Pitchbook, December 2023

Performance information is provided for illustrative purposes only.
Past performance is not a reliable indicator of future results.
Potential investors must have the financial capacity and willingness to bear the risks (including the potential total loss of their investment in the fund).

Average performance of asset classes worldwide

Positive yields even during recession

Like equities, the Private Equity market is cyclical.

Nevertheless, the lower volatility of this asset class, compared with listed markets, can be explained by a combination of factors:

Undertaking to retain

In Private Equity, the minimum holding period is 10 years. This gives the managers time to support the underlying companies in creating value.

the positive impact of managers

The managers support the underlying companies by contributing their sectoral and operational expertise to help them grow and generate value.

flexibility

Managers choose the best time to dispose of assets, depending on the company's situation, the market in which it operates and the economic climate.

<span>Positive yields even during recession</span>

Examples of value creation levers

Value creation in Private Equity

11:35mn

A focus on organic growth

Buoyant sectors with strong structural growth

Leading companies gaining market share

Financial and operational support

Optimization of financial structure and provision of substantial resources

All the experience of funds at the service of companies

Efficient governance

Weekly interactions with management

A demanding framework imposed by financial partners for operational/financial excellence

External growth

Acquiring strategic targets to encourage synergies

Profitable transactions

Alignment of interests

Management stake in the company's capital

Fund partners who are also investors

Financial leverage

To finance the initial acquisition

For future build-ups

A long-term investment

Implementation of value creation plans over 5 to 7 years

A valuation that adjusts over time, in contrast to public market volatility

Resale to a strategic buyer

Often identified at the time of acquisition

Prepared to pay a strategic premium

reason 2

Private Equity is an asset class favoured by institutional investors and the largest family funds

Because of its lower volatility and historical performance over time, Private Equity is an asset class favored by:

The largest institutional investors

The most sophisticated Family Offices and private investors

Some investors allocate more than half their wealth to this asset class.

Private Equity's share of total assets by investor type

Private Equity's share of worldwide asset allocations

Reason 3

Altaroc gives you access to some of the world's best-performing managers, both historically and over time.

Huge differences in performance between Private Equity managers

Average performance of Private Equity Growth & buyout worldwide

The best managers are often hard to find.

Hard-to-identify fund managers

Most of them are based outside France, and are very difficult to access.

Very high fund entry fees for private clients

Depending on the fund, minimum tickets start at $10M and can reach much higher sums.

These managers' funds are generally oversubscribed.

Historical institutional investors reinvest large amounts almost systematically, leaving very little room for new investors.

These managers have no interest in targeting private clients directly

Regulatory constraints and the complexity of fund-raising and administration are real obstacles for these fund managers, who are also looking for investors capable of investing in several funds.

Our criteria for selecting the best-performing fund managers

Maurice Tchenio

Advisory role

50 years' experience in Private Equity
Founder Apax
Founder Altamir

Frédéric Stolar

33 years' experience in Private Equity
Co-founder Sagard Warburg Pincus
Apax

Louis Flamand

17 years' experience in international funds of funds

Dimitri Bernard

Selection of Indosuez Private Equity funds
Ardian Private Equity funds of funds

Eric Sabia

21 years' experience in Private Equity:
Pwc, Fondinvest, Altamir

Our financial criteria

Investment companies that goes back over 25 years

A 20-year track record of high performance

Very low volatility of historical performance

Fund size in excess of €1 billion

Our extra-financial criteria

The quality of our investment strategy and portfolios

Quality, cohesion, reputation and motivation of our teams

Processes, governance and a culture of institutional quality

A proactive approach to succession issues

Significant investments by managers to ensure alignment of interests

These are all key elements to be diligently examined in order to assess the fundamentals of a manager's future performance.

Reason 4

Investing with Altaroc means investing like Altamir, France's leading listed Private Equity company.

Altamir was founded in 1995 by Maurice Tchenio to give all private investors access to the performance of Private Equity via the stock market.

The company is a pioneer in the democratization of Private Equity.

A benchmark player in Private Equity for individuals for over 25 years

Altamir is a listed Private Equity company that invests mainly in Apax funds and co-invest alongside these funds. Altamir is the first evergreen Private Equity fund launched in France.

Altamir currently has approximately €1.3 billion in shareholders' equity

An exceptional long-term track record

Growth in Net Asset Value of :

+ 12.4%(*) per annum over the last ten years

(*) Performance to 12/31/2023. The performance information provided on this slide is for illustrative purposes only. Past performance is not a reliable indicator of future results.

Altamir chose Altaroc to accelerate its diversification into Private Equity

Altamir has committed 90 million euros to the first three Vintage Odyssey: Odyssey 2021, Odyssey 2022 and Odyssey 2023.

The Vintage Odyssey range meets the very high diversification and investment requirements of Altamir, a sophisticated and highly demanding professional investor.

As for the first two Vintages, Altamir shares some of Odyssey 2023's commitments to give it access, according to its own criteria, to the world's best funds.

Reason 5

Investing with Altaroc means investing simply in a portfolio built on strong convictions.

To achieve the best performance in Private Equity, it is essential to:

Know how to select and gain access to the best-performing fund managers,

Choose Buyout and Growth funds positioned in growth sectors with low cyclicality, unlike Venture Capital or Turnaround funds, which are too risky and volatile in terms of wealth,

Build diversified portfolios across managers, geographies and Vintages to limit risk, without excessive diversification, lest performance revert to the mean.

An investment strategy to drive performance

An efficient diversification

On 5 to 7 managers with a proven track record,

Internationally, with a balanced Europe - North America exhibition and an exhibition in Asia and the Rest of the World,

On more than 150 ETIs per vintage, some of which are co-invested with the managers present on our Vintage website.

A focus on the high-growth sectors of technology, software, telecommunications, healthcare and business services with a digital dimension.

Offer of robust Vintages available every year

100% Private Equity

80% of Vintage invested in 5 to 7 funds managed by experienced teams selected for their track record over time

a management company in existence for at least 20 years
a performance objective of at least 2.0x net multiple and 15% net IRR over 20 years

20% in co-investments exclusively invested alongside these funds.

Reason 6

Investing with Altaroc means investing in the real economy.

Total transparency to experience your investment

Every day, Damien Hélène, our editor-in-chief, tells you the stories of the innovative, successful entrepreneurs and companies that make up our vintages.

Visit our newsflow to learn about:

All the companies supported by our managers by fund, geography and sector,

Acquisitions/divestitures/IPOs carried out by each fund

Our reports

A full report on the performance of Vintage is available quarterly on our client Investor Relations pages.

An annual ESG report is also made available to our investors.

Our reports are produced by Altamir's reporting teams. Our investors therefore benefit from 30 years of expertise in institutional reporting.