Updated on 31/01/2024
Private Equity Fundamentals: Understanding the keys to this asset class
Written by
Frédéric Stolar
Knowing level
Free for our partners and their customers
Exclusive content for a complete understanding of the asset class
All the key concepts explained to familiarize yourself with the asset class
An ebook written by our investment team
Discover our first interactive white paper on the fundamentals of private equity
Immerse yourself in 38 pages of exclusive content to gain an in-depth understanding of Private Equity, its specific features, its benefits for private clients and the risks associated with this asset class.
This interactive white paper includes explanatory videos designed by Altaroc's teams, specially created to help our partners and their customers discover and master this investment universe.
Written by private equity experts, this book focuses on the democratization of this asset class, making its mechanisms accessible to everyone, from novices toseasoned investors.
Discover the contents of this white paper
Contents
What is a private equity fund?
Private equity fees
Private equity investment options
The authors
Our teams mobilize their expertise to promote this asset class
All our content is written by the Altaroc team. If you would like to find out more about the editorial process, or if you would like to learn more about a specific asset class topic, we would be delighted to hear from you.
Frédéric Stolar, Managing Partner
Frédéric Stolar, a graduate of Centrale Supélec and Wharton Business School (Palmer Award with high distinction), has over 35 years' experience in private equity. For almost 20 years, he co-founded and managed the Sagard funds, a key player in the mid-market in French-speaking Europe. After starting out with Apax and then Warburg Pincus in London, he launched Sagard in 2001 with the support of Power Corporation of Canada and Groupe Bruxelles Lambert, helping to make it one of the best-performing funds in its category. In 2021, he co-founded Altaroc, where he now holds the position of Managing Partner.
Louis Flamand, Chief Investment Officer
A graduate of the École Nationale Supérieure des Arts et Métiers and King's College London, Louis Flamand has over 16 years' experience in private equity. After starting out at Groupama Private Equity, he held key positions at UBS Global Asset Management and MetLife Investment Management, where he managed a $5 billion portfolio in Europe and Asia. He has sat on the supervisory boards of several international asset managers such as CVC, Permira and Carlyle, and was a member of the LP Council and the Board of Invest Europe. In 2023, he joins Altaroc as Chief Investment Officer, in charge of fund selection forAltaroc Vintage Odyssey .
Claire Peyssard-Moses, Chief Reporting & ESG Officer
A graduate of HEC in 1996, Claire has almost 30 years' experience in communications and financial control. After starting out at Lafarge, she held strategic positions in CAC 40 groups before joining Saint-Gobain in 2006, where she was involved in major M&A projects. In 2010, she joined Verallia to head up Investor Relations, before becoming Director of Investor Relations and Financial Control in 2015, notably during the Apollo LBO. Since 2018, she has been Investor Relations Director at Altamir and, since 2021, Reporting & ESG Director atAltaroc, where she oversees financial and extra-financial reporting as well as ESG policy.
Dimitri Bernard, Investment Director
A graduate of NEOMA Business School, Dimitri has over 10 years' experience in Private Equity. He began his career in 2015 at Ardian in the Fund of Funds and then Private Debt teams. In 2019, he joined Indosuez Wealth Management (Crédit Agricole Group) as a Private Equity portfolio manager for high-end private clients. In 2021, Dimitri joins Altaroc as Investment Director, with the mission of selecting the Vintage Altaroc Odyssey funds and ensuring optimal performance for distributors and private investors.
Discover the fundamentals of Private Equity
Understanding Private Equity
A strategic asset for finance professionals
For wealth management professionals, mastering the fundamentals of private equity enables them to broaden the range of investment solutions available to their clients. This asset class offers unique diversification opportunities and superior return potential. However, it is essential to remember that the capital invested is not guaranteed, and that private equity entails specific risks linked to the illiquidity and performance of the companies financed.
Investment diversification
Private equity makes it possible to include unlisted companies in client portfolios, providing diversification beyond the public markets. This decorrelation helps to limit exposure to fluctuations in traditional financial markets, while still entailing a risk of capital loss.
Access to unique opportunities and superior return potential
Advisors can offer their clients exclusive investment opportunities, often inaccessible on stock markets, with the potential for high returns. However, these returns are associated with a higher level of risk, due to the lack of liquidity and the uncertainties associated with the development of the companies financed.
Reducing procurement risk
Private equity offers decorrelation from stock markets, limiting the impact of day-to-day fluctuations. However, this apparent stability should not mask the risks inherent in this asset class, notably the long investment horizon and the lack of capital protection.
By integrating private equity into their offering, wealth management professionals can propose innovative , high-performance investment solutions, while supporting their clients in risk management adapted to the specific features of this asset class.
A dynamic asset class for private investors
Private equity enables private investors to diversify their wealth by gaining access to unlisted companies with high growth potential. This asset class offers exclusive investment opportunities and potentially higher returns than public markets. However, it is essential to note that these investments entail specific risks, notably theabsence of a capital guarantee and limited liquidity.
Diversification beyond listed markets
By investing in unlisted companies, Private Equity allows you to decorrelate your portfolio from the fluctuations of traditional stock markets. This diversification can reinforce the overall stability of your assets, although it does not eliminate the risk of capital loss.
Access to exclusive opportunities and attractive returns
Private equity offers access to unique opportunities, often inaccessible through traditional investments. These companies are in a development or transformation phase and offer the potential for high returns, but their performance is subject to economic uncertainties and the success of the projects financed.
Public procurement decorrelation and risk management
Private equity investments are less exposed to the day-to-day fluctuations of the financial markets, which can bring a degree of stability to portfolios. However, this asset class requires a long-term commitment and involves significant illiquidity, making investment exits more complex.
Private equity is therefore a solution for private investors seeking diversification, performance and direct participation in the real economy. Nevertheless, it is crucial to understand the associated risks, and to integrate this asset class into a balanced wealth management strategy.
.webp)