Merrick McKay (Abrdn): The advantages of investing in specialised Private Equity funds - Part 2

In this video, Dimitri Bernard, Investment Director at Altaroc , explains how Private Equity combines high performance with liquidity management. He details the deployment, disposal and distribution phases of funds, emphasizing the importance of a long investment horizon to maximize returns. Dimitri also discusses the ability of funds to maintain their historical performance in a changing market environment, emphasizing the importance of a disciplined strategy to optimize exit windows.

In this video, Claire Peyssard, Head of Reporting and ESG at Altaroc , shares results on recent co-investments. She explains why companies held for less than a year are already showing significant revaluations, a rare phenomenon in private equity. Claire also highlights the exceptional performance of the largest co-investment in Vintage 2021, already valued at more than twice the stake in less than 2 and a half years.

Private Equity escapes the vagaries of market timing thanks to a long-term investment horizon (7 to 10 years) and a gradual deployment strategy. By investing regularly, you optimize your diversification and reduce the risks associated with economic cycles. Find out why this approach is adopted by the largest institutional investors.

Private Equity has historically outperformed listed markets thanks in particular to better profitability, reduced volatility and a unique alignment of interests between investors and management. Its investment universe is 20 times larger than that of listed markets, offering exclusive opportunities. Discover why this asset class is a must-have for any diversified portfolio.

Why can private equity fees seem high? This video explains their key role in rigorous asset selection, strategic support for companies, and long-term value creation, with an emphasis on net performance for investors.

Understanding the fundamentals of private equity: definition, value creation, and how a fund works.

Merrick McKay explains why institutional investors are attracted to private equity, with a focus on Altaroc solutions.

ABRDN's Merrick McKay shares the benefits of investing in specialist private equity funds, including Odyssey and Discovery.

Merrick McKay discusses the right time to invest in private equity, with advice onAltaroc's Odyssey and Discovery funds.

Merrick McKay discusses the right time to invest in private equity, with advice onAltaroc's Odyssey and Discovery funds.

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

Private Equity allows investors to invest in unlisted companies with specialized managers aiming for high returns by supporting fast-growing, well-managed businesses. Unlike the stock market, where judgement is quarterly, Private Equity offers an investment horizon of 5 to 7 years to develop and execute a business plan.

Private Equity is one of the best-performing asset classes, but is still under-represented in French portfolios. Altaroc offers Vintage turnkey solutions to democratize access to Private Equity and enable private clients to replicate the strategies of large institutional investors in Private Equity.

The Altaroc offer features a Private Equity investment strategy through vintage funds of funds, providing balanced exposure by investing each year, despite the challenges of rigorously selecting 5 to 7 exceptional funds per year.

Louis Flamand explains that the major risk in Private Equity is team risk. To minimize this risk, Altaroc invests in large funds, with large teams, and ensures that these teams are cohesive and committed to a common vision, while at the same time ensuring fairness in the sharing of interests and the financial involvement of key members alongside investors.

Private Equity creates value through levers such as active governance, alignment of interests, external growth and long-term investment, with proven operational strategies. These levers enable high returns to be generated through organic growth, improved operating margins, the use of financial levers, multiple revaluation and consolidation strategies, moving away from pure financial engineering to focus on concrete, long-term industrial development.

Private Equity encompasses a range of investment strategies in unlisted companies, from venture capital for start-ups to turnaround funds for distressed companies, with varying risk and liquidity profiles. Growth capital and LBO funds target more mature companies and offer a more attractive risk/return balance, while turnaround funds operate in more complex and risky situations.

Frédéric Stolar explains that, in Private Equity, there is no market timing as such, as investments are spread over five years and exits are similar, smoothing out entry and exit points. It's the managers who decide when to buy and sell companies.

Louis Flamand, our Chief Investment Officer, explains the phenomenon of the famous J-curve.

Private Equity is a sector that manages investments in unlisted companies on behalf of mainly institutional capital, having expanded worldwide with over 4,000 management companies and more than $5,000 billion under management. Known as the best-performing asset class over the long term, average annual returns are between 10% and 15%, with some funds exceeding 20%.

Jean-Pierre Petit, Chairman of Cahiers verts de l'économie, highlights the value of Private Equity, which accounts for around 4.5% of the world's market capitalization, as an investment in the real economy offering opportunities at different stages of company development, with potentially higher returns than listed equities, despite risks linked to fund selection and liquidity, advising an allocation of 5 to 10% of assets for a medium- to long-term investment strategy.

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.