In this article, you will find the key points of the 30th edition of the annual study on the net performance of French private equity players, carried out by France Invest and EY.
Firstly, private equity performance remains high in the short, medium and long term, despite macroeconomic adjustments since 2022. Liquidated funds returned 1.87 times their initial investment to their investors.
Secondly, private equity consistently outperforms other asset classes, including high-performing listed markets such as the CAC 40 and CAC All-Tradable. Over 10 years, the net IRR for French private equity is 13.3% p.a., compared with 11.5% p.a. for the CAC 40 and 9.0% for the CAC All-Tradable.
The fully liquidated funds generated a net IRR of 14.5% p.a. with an investment multiple of 1.87x, net of management fees and carried interest.
Finally, there was a slight drop in performance, but it was still maintained:
- 11.7% since inception (vs. 12.1% in 2022)
- 13.3% over 10 years (vs. 14.1% in 2022)
- 13.4% over 3 years (vs. 15.2% in 2022)
The study covers the net performance of 1,079 private equity and infrastructure funds to the end of 2023, including over 1,000 vehicles managed by 165 management companies. The Internal Rate of Return (IRR) is used as the main performance indicator, taking into account capital calls, distributions and Net Asset Value (NAV).
French private equity has maintained high performance, outperforming other asset classes, thanks to value-creation strategies and effective management through economic cycles.
