Inside Private Equity - 24 April 2024 broadcast

This first episode lays the groundwork for understanding private equity: investing in the equity of unlisted companies to support their long-term growth—typically over a 5- to 7-year horizon—with the goal of creating value. Frédéric Stolar points out that private equity is not limited to providing capital: funds also offer strategic expertise, operational support, governance, and a network. He identifies four main categories: venture capital, growth equity, LBO turnaround. The episode highlights the role of private equity in financing the real economy: hiring, international expansion, factory construction, acquisitions, digitalization, and market consolidation. Alexandre de Vigan, founder of Nfinite, provides a concrete example of the value of private equity for a fast-growing technology company. He explains that his investors, particularly those from the U.S., have provided him with much more than just a check: access to the U.S. market, recruitment support, commercial expertise, and performance expectations. Aleksandra Putra of Rede Partners describes the fundraising market: top managers remain highly sought after, often oversubscribed, and access to top-tier funds relies on long-term relationships. She also highlights the rise of retail investors and the importance of education. Louis Flamand analyzes the impact of rising interest rates: while they slowed transactions in 2022–2023, falling valuations and the gradual return of macroeconomic visibility are allowing the market to rebound. High-quality sectors such as tech and healthcare remain particularly sought after.Finally, Edouard Debost explains the role of the investment banker in private equity transactions: identifying targets, financial structuring, valuation, financing, support during the holding period, and preparing for the exit. The episode concludes by discussing the drivers of private equity’s outperformance: a long-term perspective, a focus on growth, active support, alignment of interests, access to private information, and a strong performance culture.