Creating wealth through Private Equity

Thibaut Mortelecq provides a concrete example of how to build wealth through private equity using the “Re-up” strategy. The central idea is to transform a given amount of capital into a structured, phased investment program, rather than investing it all at once. For example, for an amount of €300,000, the recommendation is to divide this sum into annual commitments of €100,000 over several years, in order to spread the risk and optimize performance. Portfolio construction takes place in several phases. During the first six years, the investor gradually builds their portfolio by increasing the number of commitments. At this stage, the maximum capital actually deployed reaches approximately €310,000 thanks to the cash flow recycling mechanism. This phase results in a diversified and robust portfolio. Starting in the seventh year, the first distributions exceed the capital calls. The portfolio then enters a maturity phase where it begins to partially self-finance. Starting in the tenth year, a balance is established: incoming cash flows consistently exceed outgoing cash flows, generating a regular annual income. This income can represent approximately 70% of the annual investment, while maintaining the invested capital.This approach thus allows for the combination of three objectives: putting capital to work over the long term, generating regular income, and building an extremely diversified portfolio, composed of dozens of managers and hundreds or even thousands of underlying companies. To support investors, Altaroc developed simulation tools tailored to different objectives: income generation, investment of a given capital amount, reaching a target net worth, or free simulation. The goal is to make private equity accessible and manageable by transforming a complex strategy into a clear and customizable process.