Diversification strategy by market segments

Altaroc investment strategyAltaroc on a resolutely global approach, grounded in a rigorous analysis of market maturity and the quality of private equity managers. The North American market plays a central role in this strategy, as it is considered indispensable due to its long history, depth, and level of sophistication. The private equity industry originated in the United States, and it is still there today that the most experienced, specialized, and high-performing managers are found. This homogeneous market, both culturally and legally, offers an environment particularly conducive to value creation.Europe constitutes the second pillar of this strategy, with a marked preference for pan-European or regional approaches, particularly in Northern Europe, which is considered more economically robust. Altaroc single-country funds, which are considered riskier due to their exposure to specific and often less deep macroeconomic environments. Specialized managers, who invest in specific sectors, require broad geographic coverage to access a sufficient and diversified deal flow. Asia, although promising from a macroeconomic perspective, is approached with caution. The private equity industry there is still relatively new, with managers often lacking a track record and stability. Factors such as high team turnover, lack of transparency, and political risks reinforce this caution. The example of China’s education sector, which has been abruptly transformed by regulatory decisions, illustrates the risks specific to this region. Furthermore, the historical performance of Asian private equity has lagged behind that of Europe and the United States, particularly due to a more cyclical sectoral exposure.Ultimately, Altaroc global diversification structured around the most mature markets and the strongest managers, in order to optimize the risk/return profile for its investors. This approach contrasts with that of certain private banks, which are often limited to less diversified local offerings.