Inside Private Equity - 26 June 2024 broadcast

This episode of Inside Private Equity explains why private equity has historically outperformed public markets, while noting that this outperformance comes at the cost of a major constraint: illiquidity. Frédéric Stolar compares the average returns of private equity to those of the equity markets and details the structural drivers of performance: selection of growth companies, alignment of interests, active governance, operational support, build-up, leverage, and a long-term horizon. The episode then features Emmanuel Straschnov, co-founder of Bubble, an American no-code platform created by a Frenchman. After seven years of self-funding, Bubble chose to raise capital from investors such as Insight Partners accelerate its development, recruit technical talent, and strengthen its marketing. Emmanuel Straschnov emphasizes that private equity acts as a catalyst: it does not replace management, but pushes them to structure their ambitions and aim for sustainable performance.Louis Flamand discusses the choice of private equity funds and contrasts generalist funds with specialized funds. In his view, sector- or sub-sector-specific specialization is becoming a decisive advantage in mature markets like Europe and the United States: it enables better sourcing of deals, helps build trust with executives, and creates greater value through proven playbooks.The program also features Claire Chabrier, a partner at Amundi and former president of France Invest. She highlights the role of private equity in financing the real economy: supporting thousands of companies, creating jobs, investing in R&D, driving sustainable transition, and gradually opening up to retail investors. She emphasizes the importance of education in making this asset class more accessible.Finally, Henri de Castries, Senior Advisor at General Atlantic former executive at AXA, shares his perspective as a former insurer on the long-term view, climate risk, and how private investment can support major economic transformations.