Why waiting is not a winning strategy

This video addresses a common objection raised by advisors and partners: waiting for the performance of the first cohorts before proposing a private equity solution. While this approach may seem prudent, it is actually counterproductive within the long-term investment framework inherent to private equity. Indeed, investing in private equity relies on regular exposure to different cohorts in order to smooth out economic cycles and optimize overall portfolio performance. Delaying the investment amounts to reducing this temporal diversification and risking missing out on some of the best-performing funds. Historically, the best-performing funds often follow periods of declining valuations, such as those observed after the rate hike in 2022. The strength of a strategy does not rest solely on the past performance of the funds, but on the quality of the selected managers. Each Altaroc vintage Altaroc composed of funds managed by teams with long and consistent track records, often exceeding 20 years. This selection provides significant historical visibility, far superior to that of an individual fund.The first vintages are already showing encouraging performance, despite their youth, which is consistent with the dynamics of private equity, where value creation materializes gradually over time. This performance also relies on the expertise of an experienced investment team and a strong alignment of interests, exemplified by the founders’ personal investment.The vintage-based approach also enables the construction of long-term investment programs by combining diversification, discipline, and the reinvestment of distributions. This mechanism facilitates the gradual and effective deployment of capital, while ultimately generating potential recurring cash flows.Beyond the investment itself, the offering is built on an ecosystem that combines human expertise with a technological platform, aiming to simplify access to private equity for private investors while offering a level of transparency and monitoring comparable to institutional standards. Thus, waiting before investing can lead to missing out on attractive opportunities. A disciplined approach, based on regular exposure and rigorous selection of managers, appears to be better suited to capturing the long-term performance of private equity.