Altaroc’s deal flow process

Altaroc selection of private equity funds Altaroc on an extremely rigorous and disciplined approach, which is essential given a universe of more than 5,000 funds worldwide. The goal is to filter this vast market to identify only those managers who offer the best guarantees of long-term performance and stability.The first key criterion concerns fund size. Altaroc funds of at least €1 billion to limit the risk associated with small teams. Smaller structures can be fragile, particularly in the event of the departure of key talent, unless they are backed by large platforms capable of providing additional resources. The experience and maturity of the managers constitute a second fundamental pillar. Selected firms must generally have been in existence for at least 25 years, ensuring a solid culture, proven governance, and the ability to navigate various economic cycles. The quality of the track record is also essential, with a requirement for visibility into at least 20 years of actual performance (cash-on-cash). This analysis goes beyond mere numbers: it takes into account team stability, strategic consistency, and the regularity of results, to avoid performance driven by a few isolated successes or non-replicable conditions.Altaroc alsoAltaroc great importance on the managers’ organizational structure. Management firms must reach a critical mass, with at least €3 billion in assets under management, a team of at least 50 professionals, and several experienced partners who have been with the firm for the long term. This organizational depth reduces reliance on a few individuals and ensures the sustainability of performance. Sector specialization is another major differentiating factor. In an increasingly competitive environment, managers capable of developing deep expertise in sectors such as technology or healthcare have a decisive advantage in terms of sourcing and value creation. Added to this is the importance of internal operational resources, which enable us to provide concrete support to portfolio companies and optimize their development. Finally, the alignment of interests between managers and investors is considered essential. Management teams must invest significantly in their own funds, while maintaining a balance to avoid excessive risk-taking or, conversely, excessive caution.This combination of criteria aims to select managers capable of generating alpha over the long term. Historical data also shows that the top-performing funds (first quartile) significantly outperform the market average, with performance gaps far greater than those observed in public markets, which justifies a particularly rigorous selection process.