Private Equity
What is Private Equity?
There are many cases where Private Equity brings real added value, particularly when companies need to change their size, strategy or organization.
What all companies involved in these operations have in common is the existence of untapped potential, which Private Equity seeks to unlock through specific, clearly identified value-creation plans, such as external growth, internationalization, digital transformation, etc.
The companies acquired are supported for an average of 5 to 7 years, then sold with a crystallized capital gain when they are delisted from the stock market or resold to industrial groups or other funds.
Private Equity in figures
Reasons underlying the Private Equity performance
The 4 Private Equity segments
These two segments offer the most attractive risk/return profile.
None of our portfolios will therefore include Venture Capital or Turnaround, which are the most volatile segments of Private Equity.
What is a Private Equity fund?
These funds are generally illiquid and require significant financial commitments, making them accessible mainly to well-informed investors.
They are managed by teams of professionals, brought together within management companies, who have an exclusive mandate to optimize investment performance.
A fund generally diversifies its portfolio by investing in 15 to 70 independent companies, in order to limit risk and maximize returns over time.
How a Private Equity fund works
What is a Private Equity fund of fund?
- 2 capital calls per year, with fixed dates and amounts, from the second year.
At Altaroc, subscribing to all our ranges is 100% digital and takes just a few minutes.
Our partners, like our investors, have a dedicated space to ensure real-time monitoring of the life of their investment.
Private Equity management fees
They are calculated on bases or with rates that vary according to the period:
Option 1: the calculation base remains the amount subscribed by investors to which a degressive rate is applied,
Option 2: the calculation is made on the capital invested (net of divestments) with a rate identical to or lower than that applied during the fund's investment period.
Management fees for portfolio funds and co-investments amount to 1. 3% for the customer Altaroc.
Thus, for the smallest commitments the customer Altaroc pays consolidated fees of 3.8%.
In addition to these fees, performance fees on the co-investment portion of the Odyssey and Discovery portfolios amount to 20% of realized capital gains.
A range of institutional-quality private equity funds, available in French life insurance and PER - Assurance.
Every year, we build a highly diversified, high-performance, turnkey global Private Equity portfolio.
Invest in private equity like the biggest institutional investors
A multi-million-dollar global private equity offering is in the pipeline.
Originating in the United States, Private Equity has developed rapidly over the last 40 years, initially among institutional investors such as pension funds, insurance companies, etc., who wished to invest in unlisted companies by delegating the management of their investments to specialized management companies. It consists of an operation whereby an investor buys shares in unlisted companies seeking equity capital.
Management companies support and/or improve the performance of the companies in which they acquire stakes. The companies acquired are supported for an average of five to seven years, then sold with a crystallised capital gain when they are taken public or resold, either to industrial groups or to other funds. The companies we support generally have one of the following profiles:
- unlisted growth companies,
- so-called "orphan" companies or underdeveloped divisions of large corporations,
- listed companies that are undervalued or whose growth potential could be better exploited by a private shareholder.
The Private Equity model can be applied to a wide range of companies, whatever their type, size, sector or geographical area. There are many cases in which Private Equity generates real added value, particularly when the companies it supports need to change size, strategy or organisational set-up.
Private Equity's performance is based on a series of levers explained by Frédéric Stolar in this short video.
Private Equity investments entail risks of liquidity and capital loss. Past performance is no guarantee of future results.
Investing in Private Equity entails risks, particularly in terms of liquidity and capital loss. Find out more about the main risks associated with Private Equity investing on our Private Equity Performance and Risks page.