Understanding Private Equity

Unlike publicly traded markets, the performance of a private equity fund cannot be reduced to a change in share price or an annual return.

Evergreen funds now represent nearly $400 billion in assets under management* worldwide. Initially considered complementary to traditional closed-end funds, they are gradually becoming established in strategic allocations, including institutional ones.

Sources: Pathway Capital 2Q25 Environment Report, Mergermarket, PitchBook Data, LSEG Data & Analytics

Faced with uncertainties over the future of the pension system, the French are looking for solutions to regain control over their financial future. Thibaut Mortelecq, Head of Key Account Services at Altaroc, explains the challenges, obstacles and opportunities associated with private equity investment as part of a long-term wealth management strategy.

In the investment world, private equity is a model for generating outperformance in relation to listed markets. It's not simply a question of financial strategy, but of a set of mechanical levers that enable funds to create value.

Investing in private equity can offer attractive returns, well above those of traditional public markets. However, as with any investment, there are risks involved which it is essential to understand to avoid unpleasant surprises.

Private equity offers the potential for high returns, but also entails significant risks. For investors wishing to gain exposure to this asset class while limiting risk, funds of funds offer an attractive solution. These structures provide access to a wide range of private equity funds, while benefiting from professional management and increased diversification.

Private Equity is distinguished by the diversity of investment strategies it encompasses. Depending on the stage of development of the companies financed, Private Equity funds adopt specific approaches ranging from venture capital to buyout capital. Each stage pursues a specific objective: supporting innovation, accompanying growth or facilitating business transitions. This model allows investors to gain exposure to varied opportunities throughout a company's life cycle.

In an ever-changing financial environment, investors are looking to diversify their portfolios beyond traditional investments. Private equity, still perceived by some as a complex field reserved for a financial elite, is today establishing itself as a strategic asset class offering opportunities for returns superior to those of the public markets. But what exactly is private equity, and why are more and more individual investors turning to it?

The private equity market is constantly evolving, and STG actively preparing for a period of consolidation. Bill Chisholm, co-founder and Fund manager STG, shares his insights on current and future trends and explains the importance of sector specialization and investments in the software sector within the firm’s strategy.

Whether the macro-economic environment influences private equity performance is a recurring question for investors.

According to France Invest, Private Equity has generated an average return of 11.7% net/year over 15 years. Find out how investing in unlisted companies can help you avoid the volatility of financial markets. Co-investment or funds, make the right choice. To find out more, read the article.

TheAltaroc team selects exceptional managers for each Vintage. Find out why the USA is the preferred location for due diligence and Private Equity. Trace the history of Private Equity with General Doriot, Silicon Valley and the evolution of the sector up to 2006. A global view of investments and opportunities. Invest today for tomorrow.

FCPI and FPCI funds FPCI investment funds for unlisted companies that offer tax advantages but have distinct management requirements. FCPI funds focus on innovation and have specific investment requirements, while FPCI funds, created in the 1980s, are more flexible but offer less protection.

Antoine Duchiron explains the key criteria for evaluating an Evergreen private equity fund: underlying strategy, open- or closed-end structure, fees, and, above all, liquidity (gate mechanisms).

What is the secondary market in private equity, and what is its real purpose? A clear explanation of its mechanisms, advantages, limitations, and the main LP-led and GP-led strategies.

Private equity funds are becoming increasingly specialized. In this video, learn about the differences between generalist, specialized, and thematic funds, and why this matters for value creation.

How should we interpret a private equity fund’s performance over time? A clear understanding of performance dynamics and short-term biases.

Private equity invests in unlisted companies. In this video, you’ll explore the entire investment cycle: key players, strategies, value creation, and exits.

In 2024, the buyout market buyout a notable recovery thanks to improving economic conditions, with an increase in transactions particularly in the United States and Europe, while Asia exhibited varied regional dynamics. "Take-private" transactions and carve-outs were particularly active, reflecting a growing desire among companies to leave the public markets in search of greater flexibility. Investor caution in the face of macroeconomic risks reduced fundraising activity but also created attractive investment opportunities, while the GP-LED transaction strategy continues to grow as an alternative to traditional exits.

Private equity favors a long-term horizon and gradual deployment.

Private equity offers performance, diversification, and access to a broader universe.

Why private equity fees contribute to net performance.

Invest in private equity without delay thanks to a vintage approach.

Generalist or specialist funds: what are the differences in private equity?

Understanding the fundamentals and value creation in private equity.

Merrick McKay analyzes institutional interest in private equity.

Understand institutional investors' appetite for private equity with Altaroc and its Odyssey ranges.

Merrick McKay discusses the appeal of specialized private equity funds.

Louis Flamand highlights the team risk andAltaroc selection approach.

Private equity creates value through active governance and long-term growth.

Louis Flamand advocates a disciplined approach to buyout growth equity.

Louis Flamand details Altaroc rigorous fund selection criteria.

Private equity encompasses venture capital, growth capital, LBO turnarounds, with a wide range of investment profiles.

Private equity has historically outperformed and offers diversification that is uncorrelated with listed markets.

Louis Flamand, CIO, presents the mechanism and challenges of the J-curve in private equity.

Private Equity: A Relatively New and Often Misunderstood Field

Jean-Pierre Petit highlights the benefits of private equity for diversifying asset allocation.

Is a 15% allocation to private equity becoming the new standard for portfolio construction? Find out why market trends are leading more and more investors to view a 15% allocation to private equity as a new strategic balance.

Understand the dynamics of the early years and their implications for your reinvestment strategies.

A fresh perspective on the future of private equity, based on the combined insights of five leading international fund managers.

Often perceived as a world reserved for insiders, private equity plays a key role in financing the real economy and driving business growth. This special report deciphers the mechanisms of private equity, from capital raising to value creation strategy. With a particular focus on funds of funds, which are genuine catalysts for diversification and access to rare opportunities, we explain how these tools enable investors to participate in high-potential entrepreneurial adventures.

Private equity can complement a wealth management strategy when it is part of a diversified portfolio tailored to the investor’s objectives. This asset class offers exposure to unlisted companies and is suited to a long-term investment approach. Due to its illiquidity and the risk of capital loss, its role depends in particular on wealth management objectives, the investment horizon, liquidity needs, and risk profile.

According to France Invest's 2023 annual study, French private equity has historically generated an average net internal rate of return (IRR) of 13.3% per year over a ten-year period.

For more than twenty years, the world’s largest institutional investors—from Canadian pension funds to major U.S. universities—have been gradually increasing their exposure to private equity.

According to Bain & Company, technology has been one of the top investment sectors for private equity globally for several years.

After reaching a peak in market capitalization in 2021, publicly traded SaaS companies experienced a historic correction.

Behind the terms “GP-led” and “LP-led” lie two distinct mechanisms that address different needs within the private equity ecosystem.

With nearly $240 billion in transactions completed in 2024, according to Jefferies, the private equity secondary market has reached an all-time high.

According to several historical studies, private equity has at times outperformed public markets over long periods. However, these results depend on many factors, including the selection of managers, the investment year, and market conditions, and are not a guarantee of future performance.

Investing in private equity involves allocating capital to unlisted companies via specialized funds, with a view to providing strategic support and transformation over the long term.

Growth buyout of the natural evolution of private equity. Value creation depends first and foremost on the quality of the business plan and the ability to execute it operationally.

Investment funds and mutual funds play an important role in asset management and wealth management.

Deal flow is the starting point for any private equity strategy. It refers to all the investment opportunities that a fund identifies, analyzes, and filters over time.

The J curve is one of the most frequently used concepts to describe the performance dynamics of a private equity fund.

A co-investment involves an investor participating directly, alongside a private equity fund, in an investment in a specific company. The co-investment is made in addition to any commitment to the main fund.

Unlisted investments, often grouped under the term "private markets," are playing an increasingly important role in long-term management. They provide access to companies, projects, and assets that operate outside the public financial markets.

Private equity and venture capital play a key role in financing unlisted companies. These strategies enable companies at different stages of maturity to be supported by specialized funds that raise capital over the long term.