Inside Private Equity - 18 September 2024 broadcast

This episode of Inside Private Equity examines the true scale of private equity and its growing role in financing the economy. Frédéric Stolar notes that private equity represents approximately $5.5 trillion in assets under management worldwide, with the market having experienced strong growth over the past twenty years. He explains why many companies prefer to remain unlisted or delist from the stock exchange: fewer reporting requirements, greater confidentiality, better valuation for certain business models, and a time horizon better suited to their development. The episode then highlights EcoVadis, founded by Frédéric Trinel, which has become a French unicorn specializing in corporate CSR assessments. His journey illustrates the value of private equity beyond mere financing: international expansion, structuring, strategic guidance, sector expertise, and support for talent recruitment. Private equity is presented as “smart money,” capable of accelerating growth while respecting the founders’ long-term vision.Isabelle Pagnotta, a partner at Inflexion, details how a fund selects its portfolio companies: management quality, international ambition, leadership in a niche market, and potential for organic and external growth. She emphasizes the human dimension of the profession and the importance of a relationship of trust between investors and executives. The program also addresses the sector’s growing representation of women. Louis Flamand then analyzes Asia’s role in private equity portfolios. Contrary to popular belief, Asia is not necessarily the El Dorado of the private equity market: performance there lags behind that of North America and Europe, with greater political, regulatory, and liquidity risks. China has slowed down, India is attracting significant capital, while Japan, South Korea, and Australia offer more mature but still niche profiles. Finally, Jean-Philippe Kervadec explains the role of placement agents in fundraising. In a more complex market, where fundraising now takes longer, the quality of investor relationships becomes crucial. The program concludes by highlighting the appeal of Europe and France, which boast a large pool of innovative, ambitious companies capable of becoming global leaders.