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Benefit from the risk/return attractiveness of Private Equity

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Benefit from the risk/return attractiveness of Private Equity

Episode

13

7:01mn

Summary

Frédéric Stolar points out that Private Equity offers historical outperformance and lower volatility than listed markets, while also providing asset diversification thanks to its de-correlation with the latter, particularly during periods of economic recession. He emphasizes the asset class's historic ability to deliver impressive performance over the long term, with average returns of 12% per annum over the long term, and a resilience that is accentuated during crises, offering appreciable stability in the face of inflation and market vagaries.

Written transcription

In this series

23

episodes

The Altaroc offer

With Altaroc , Private Equity experts Frédéric Stolar and Maurice Tchenio offer simplified access to this asset class, previously reserved for institutional investors, thanks to a product range natively designed for private clients and an intuitive digital ecosystem.

Frédéric Stolar

Frédéric Stolar

With Altaroc , Private Equity experts Frédéric Stolar and Maurice Tchenio offer simplified access to this asset class, previously reserved for institutional investors, thanks to a product range natively designed for private clients and an intuitive digital ecosystem.

Frédéric Stolar

Frédéric Stolar

Altaroc offers a vintage portfolio of institutional-quality Private Equity, a highly innovative digital ecosystem to simplify life for our partners and their customers, and a high-quality service commitment.

Frédéric Stolar

Frédéric Stolar

Altaroc offers a vintage portfolio of institutional-quality Private Equity, a highly innovative digital ecosystem to simplify life for our partners and their customers, and a high-quality service commitment.

Frédéric Stolar

Frédéric Stolar

What are the target strategies ofAltaroc

Louis Flamand explainsAltaroc 's investment strategy, which focuses on Growth Equity and Leverage Buy Out strategies in Private Equity, offering the best risk/return balance for private clients.

Louis Flamand

Louis Flamand explainsAltaroc 's investment strategy, which focuses on Growth Equity and Leverage Buy Out strategies in Private Equity, offering the best risk/return balance for private clients.

Louis Flamand

What sectors doesAltaroc serve?

Altaroc focuses on secular growth sectors such as technology, healthcare and services, moving towards defensive economic models and innovative business models such as SaaS, while avoiding cyclical industries.

Louis Flamand

Altaroc focuses on secular growth sectors such as technology, healthcare and services, moving towards defensive economic models and innovative business models such as SaaS, while avoiding cyclical industries.

Louis Flamand

Target geographies forAltaroc

Altaroc 's Private Equity investment strategy favors the mature and specialized North American market, while remaining selective in Europe, with a preference for solid pan-European strategies. We avoid Asian funds, which are less proven to date, but keep an eye on developments in this market for potential future investments.

Louis Flamand

Altaroc 's Private Equity investment strategy favors the mature and specialized North American market, while remaining selective in Europe, with a preference for solid pan-European strategies. We avoid Asian funds, which are less proven to date, but keep an eye on developments in this market for potential future investments.

Louis Flamand

Diversification strategy by market segment

Louis Flamand explains why Altaroc focuses mainly on the Mid Market, with investments in mid-sized companies, and avoids the Small Cap due to higher risks, while remaining open to Large Cap opportunities if they offer significant growth and various exit options, as illustrated by their Vintage 2023 investing in large funds targeting the upper Middle Market and lower Large Cap.

Louis Flamand

Louis Flamand explains why Altaroc focuses mainly on the Mid Market, with investments in mid-sized companies, and avoids the Small Cap due to higher risks, while remaining open to Large Cap opportunities if they offer significant growth and various exit options, as illustrated by their Vintage 2023 investing in large funds targeting the upper Middle Market and lower Large Cap.

Louis Flamand

The dealflow process ofAltaroc

Altaroc 's Chief Investment Officer Louis Flamand emphasizes the importance of rigorous criteria in the fund selection process. Altaroc favors firms of significant size, with a long history and sector expertise, in-house operational resources, a solid track-record, and a strong alignment of interests through a substantial financial commitment on the part of the managers.

Louis Flamand

Altaroc 's Chief Investment Officer Louis Flamand emphasizes the importance of rigorous criteria in the fund selection process. Altaroc favors firms of significant size, with a long history and sector expertise, in-house operational resources, a solid track-record, and a strong alignment of interests through a substantial financial commitment on the part of the managers.

Louis Flamand

Why invest in the same strategies every year?

Louis Flamand emphasizes that buyout and Growth Equity in Private Equity offer a good combination of risk, return and liquidity, and that a disciplined and consistent investment strategy in these areas is essential, without giving in to the trends of the moment. He stresses the importance of choosing managers with a proven track record and committing to the long term, concentrating on sectors with secular growth and avoiding trendy sectors without a solid performance track record.

Louis Flamand

Louis Flamand emphasizes that buyout and Growth Equity in Private Equity offer a good combination of risk, return and liquidity, and that a disciplined and consistent investment strategy in these areas is essential, without giving in to the trends of the moment. He stresses the importance of choosing managers with a proven track record and committing to the long term, concentrating on sectors with secular growth and avoiding trendy sectors without a solid performance track record.

Louis Flamand

A permanent investment strategy Altaroc

Frederic Stolar Managing Partner ofAltaroc reaffirmsAltaroc 's investment strategy, with a focus on economic sectors with high growth potential, including software, healthcare, B2C and B2B digital marketplaces, despite the market's fluctuating valuations, particularly in tech. Altaroc maintains its exposure to companies with solid fundamentals and high growth, with examples such as Access and IFS in the SaaS software sector, where we can see significant organic growth and high EBITDA margins.

Frédéric Stolar

Frédéric Stolar

Frederic Stolar Managing Partner ofAltaroc reaffirmsAltaroc 's investment strategy, with a focus on economic sectors with high growth potential, including software, healthcare, B2C and B2B digital marketplaces, despite the market's fluctuating valuations, particularly in tech. Altaroc maintains its exposure to companies with solid fundamentals and high growth, with examples such as Access and IFS in the SaaS software sector, where we can see significant organic growth and high EBITDA margins.

Frédéric Stolar

Frédéric Stolar

What's the point of offering vintage ranges?

Vintage Altaroc reduce the risk inherent in economic cycles by diversifying investments over different cycles. They also offer customers the flexibility to adapt their annual investments to the evolution of their assets.

Frédéric Stolar

Frédéric Stolar

Vintage Altaroc reduce the risk inherent in economic cycles by diversifying investments over different cycles. They also offer customers the flexibility to adapt their annual investments to the evolution of their assets.

Frédéric Stolar

Frédéric Stolar

What sets Altaroc apart from other Private Equity funds?

Altaroc offers unique access to a diversified portfolio of global Private Equity funds, with a minimum investment of €100,000 over five years. Unlike banks' traditional mono-feeder offerings, Altaroc stands out for its cutting-edge selection and exclusive commitment to growth sectors, all designed by former Private Equity fund managers.

Frédéric Stolar

Frédéric Stolar

Altaroc offers unique access to a diversified portfolio of global Private Equity funds, with a minimum investment of €100,000 over five years. Unlike banks' traditional mono-feeder offerings, Altaroc stands out for its cutting-edge selection and exclusive commitment to growth sectors, all designed by former Private Equity fund managers.

Frédéric Stolar

Frédéric Stolar

Frédéric Stolar believes that Private Equity is essential for building and leaving a solid legacy and for financing retirement. At Altaroc, our ambition is to convince private clients to invest in Private Equity with Altaroc, thanks to global, diversified and digital solutions. We also aspire to makeAltaroc the European leader in Private Equity for private clients, by offering an institutional-quality product that is still absent from European markets.

Frédéric Stolar

Frédéric Stolar

Frédéric Stolar believes that Private Equity is essential for building and leaving a solid legacy and for financing retirement. At Altaroc, our ambition is to convince private clients to invest in Private Equity with Altaroc, thanks to global, diversified and digital solutions. We also aspire to makeAltaroc the European leader in Private Equity for private clients, by offering an institutional-quality product that is still absent from European markets.

Frédéric Stolar

Frédéric Stolar

Benefit from the risk/return attractiveness of Private Equity

Frédéric Stolar points out that Private Equity offers historical outperformance and lower volatility than listed markets, while also providing asset diversification thanks to its de-correlation with the latter, particularly during periods of economic recession. He emphasizes the asset class's historic ability to deliver impressive performance over the long term, with average returns of 12% per annum over the long term, and a resilience that is accentuated during crises, offering appreciable stability in the face of inflation and market vagaries.

Frédéric Stolar

Frédéric Stolar

Frédéric Stolar points out that Private Equity offers historical outperformance and lower volatility than listed markets, while also providing asset diversification thanks to its de-correlation with the latter, particularly during periods of economic recession. He emphasizes the asset class's historic ability to deliver impressive performance over the long term, with average returns of 12% per annum over the long term, and a resilience that is accentuated during crises, offering appreciable stability in the face of inflation and market vagaries.

Frédéric Stolar

Frédéric Stolar

Accessing inaccessible funds

Altaroc offers its clients privileged access to Private Equity funds that are difficult for private investors to access. Altaroc has implemented a rigorous manager selection process based on demanding financial and extra-financial criteria. Altaroc 's ambition is to beat the average market performance by exposing its clients only to the top quartile, whose exceptional managers have delivered between 20 and 24% net annual returns over the long term.

Frédéric Stolar

Frédéric Stolar

Altaroc offers its clients privileged access to Private Equity funds that are difficult for private investors to access. Altaroc has implemented a rigorous manager selection process based on demanding financial and extra-financial criteria. Altaroc 's ambition is to beat the average market performance by exposing its clients only to the top quartile, whose exceptional managers have delivered between 20 and 24% net annual returns over the long term.

Frédéric Stolar

Frédéric Stolar

Adopt an investment strategy similar to that of the wealthiest families

Frédéric Stolar points out that American family offices, with liquid assets in excess of $200 million, are increasingly investing in Private Equity. This asset class accounts for over 30% of their portfolios, compared with less than 1% for French private clients. It was this trend that prompted the creation ofAltaroc, an institutional-quality investment offering aimed at private clients with very little exposure to Private Equity.

Frédéric Stolar

Frédéric Stolar

Frédéric Stolar points out that American family offices, with liquid assets in excess of $200 million, are increasingly investing in Private Equity. This asset class accounts for over 30% of their portfolios, compared with less than 1% for French private clients. It was this trend that prompted the creation ofAltaroc, an institutional-quality investment offering aimed at private clients with very little exposure to Private Equity.

Frédéric Stolar

Frédéric Stolar

Investing alongside Altamir, a benchmark institution

Altaroc benefits from the strategic support of Altamir, a listed holding company managed by Maurice Tchenio, which invests a minimum of 30 million euros per Vintage, thus providing a solid financial base and a mark of confidence for investors. Altamir's participation also gives Altaroc the ability to pre-subscribe to selected managers, givingAltaroc customers greater visibility in the construction of their investment portfolios.

Frédéric Stolar

Frédéric Stolar

Altaroc benefits from the strategic support of Altamir, a listed holding company managed by Maurice Tchenio, which invests a minimum of 30 million euros per Vintage, thus providing a solid financial base and a mark of confidence for investors. Altamir's participation also gives Altaroc the ability to pre-subscribe to selected managers, givingAltaroc customers greater visibility in the construction of their investment portfolios.

Frédéric Stolar

Frédéric Stolar

Simple subscription to a portfolio built on strong convictions

Altaroc offers turnkey, diversified portfolios, based on a clear strategy with 5 to 6 exceptional managers per portfolio, drawing on decades of experience to offer a portfolio built around strong convictions. Altaroc focuses on high-growth sectors such as technology, healthcare and digital platforms, investing mainly in the United States and Europe, but also in the rest of the world, to maximize portfolio returns.

Frédéric Stolar

Frédéric Stolar

Altaroc offers turnkey, diversified portfolios, based on a clear strategy with 5 to 6 exceptional managers per portfolio, drawing on decades of experience to offer a portfolio built around strong convictions. Altaroc focuses on high-growth sectors such as technology, healthcare and digital platforms, investing mainly in the United States and Europe, but also in the rest of the world, to maximize portfolio returns.

Frédéric Stolar

Frédéric Stolar

Giving meaning to your savings

Frederic Stolar highlights how investing with Altaroc gives meaning to your savings, and how Altaroc allows you to track your investment regularly and in detail via our digital platform, including quarterly financial and extra-financial reports and updates on the activities of portfolio companies. It highlights the role of Private Equity in creating jobs, wealth and innovation, as well asAltaroc 's commitment to bringing your investment to life through interactive reporting.

Frédéric Stolar

Frédéric Stolar

Frederic Stolar highlights how investing with Altaroc gives meaning to your savings, and how Altaroc allows you to track your investment regularly and in detail via our digital platform, including quarterly financial and extra-financial reports and updates on the activities of portfolio companies. It highlights the role of Private Equity in creating jobs, wealth and innovation, as well asAltaroc 's commitment to bringing your investment to life through interactive reporting.

Frédéric Stolar

Frédéric Stolar

Expense structure at Altaroc

Frédéric Stolar explains the fee structure at Altaroc.

Frédéric Stolar

Frédéric Stolar

Frédéric Stolar explains the fee structure at Altaroc.

Frédéric Stolar

Frédéric Stolar

Why Altaroc doesn't do high school

Altaroc chooses not to include secondary funds in its portfolios because, although they offer an initial discount and an immediate accounting gain, their shorter lifespan limits the investment multiple. As a result, Altaroc favors primary funds and co-investments for potentially higher long-term returns.

Frédéric Stolar

Frédéric Stolar

Altaroc chooses not to include secondary funds in its portfolios because, although they offer an initial discount and an immediate accounting gain, their shorter lifespan limits the investment multiple. As a result, Altaroc favors primary funds and co-investments for potentially higher long-term returns.

Frédéric Stolar

Frédéric Stolar

Why Altaroc doesn't do Evergreen

Frédéric Stolar explains that open-ended Evergreen Private Equity funds are inefficient because they dilute former investors and are constantly loaded with cash, which hampers performance, unlike a closed-ended fund which could be better managed without these drawbacks.

Frédéric Stolar

Frédéric Stolar

Frédéric Stolar explains that open-ended Evergreen Private Equity funds are inefficient because they dilute former investors and are constantly loaded with cash, which hampers performance, unlike a closed-ended fund which could be better managed without these drawbacks.

Frédéric Stolar

Frédéric Stolar

Financial reporting fromAltaroc

DiscoverAltaroc 's financial reporting in this video presented by Claire Peyssard Moses, Chief Reporting Officer ofAltaroc.

Claire Peyssard-Moses

Claire Peyssard-Moses

DiscoverAltaroc 's financial reporting in this video presented by Claire Peyssard Moses, Chief Reporting Officer ofAltaroc.

Claire Peyssard-Moses

Claire Peyssard-Moses

Non-financial reporting byAltaroc

DiscoverAltaroc's extra-financial reporting, presented by Claire Peyssard Moses, Chief Reporting Officer ofAltaroc.

Claire Peyssard-Moses

Claire Peyssard-Moses

DiscoverAltaroc's extra-financial reporting, presented by Claire Peyssard Moses, Chief Reporting Officer ofAltaroc.

Claire Peyssard-Moses

Claire Peyssard-Moses

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Important disclosures

Performance information is provided for illustrative purposes only. Past performances are not a reliable indicator of future results. Private Equity investments involve a high degree of risk. Potential investors must have the financial capacity and willingness to bear the risks associated with investing in the Funds (including the potential total loss of their capital), as well as, in the case of the Altaroc funds, the lack of liquidity. To find out more, click here.