Introducing Vintage Altaroc Odyssey 2024 FPCI

We're launching our new Vintage 2024 with a few changes, but above all some constants, recurring themes in our investment approach and strategy. Let's start with the changes. The first is that this year, we're launching our new Vintage by presenting seven target funds for which we've secured our place without yet subscribing. This approach allows us to be more transparent with you about our selection universe and, above all, gives us greater flexibility to better manage the pace of deployment of our vintages. In this way, we'll give preference to managers who invest at a pace in line with that of our Vintage. Just like previous Vintage . Altaroc Odyssey 2024 will comprise between five and seven funds. The second change with this Vintage is that our target geographic exposure will be around 45% Europe, 45% North America and 10% Asia and rest of the world. We are therefore reducing our target exposure to Asia and the rest of the world from 20% to 10%, and increasing our exposure to Europe and North America to parity. This target geographic exposure is actually in line with the expected exposures for the previous 3 Altaroc funds. We will continue to be exposed to the region via 1. the Asian investments of our global fund managers and 2. The proportion of sales generated in Asia by our many multinational portfolio companies. But we are unlikely to invest in an Asian fund for two main reasons. Firstly, geopolitical risk: China, Asia's largest market, no longer offers the same growth prospects and presents a real geopolitical risk.

For example, when the Chinese government decided to ban for-profit schools and foreign investment in the education sector in China, a sector that was still very buoyant in Asia yesterday, managers who had successfully invested in this sector were unable to do anything about it. Secondly, a matter of performance. Funds raising capital in this region have yet to really demonstrate their ability to generate a return of at least 2 times net on a consistent basis over time. Asia is the least mature market, with the worst performance despite a high risk profile. This may seem surprising given the continent's strong economic growth, but Private Equity is an asset class which, to succeed, needs political and legal stability and developed capital markets more than strong macro-level growth. The third development corresponds to a new theme of Lower to Mid Market funds, attached to quality organizations. Large-cap investors have defined the Lower to Mid Market as the market segment comprising companies between 50 and 300 million euros or dollars in size. Compared to the market segments of larger companies, this is a market segment with a higher return profile, but also a higher risk profile. But funds targeting this market segment, which are attached to large-quality Large-Cap organizations that already manage a larger master fund, are extremely attractive as they offer a much lower risk profile than independent Lower Too Mid-Market funds.

Indeed, the main risk when investing in a Private Equity fund is team risk, which we at Altaroc aim to avoid altogether, and which is often present in the lower Mid-Market segment, where managers have smaller funds than in the upper Mid-Market and Large Cap segments. Managing a smaller fund means having a smaller team and therefore fewer key professionals. In times of crisis, as we saw in 2009 for example, many teams in this market segment, particularly in Southern Europe, exploded following the departure of one or two key partners. In such cases, the risk of capital loss increases significantly. This is a risk we avoid with this investment theme, as in the event of a key partner's departure, the manager will be able to transfer resources from his main fund to the smaller Lower Mid-Market fund to solve the problem. The other main risk associated with Lower to Mid-Market funds is the fragility of the companies in which they invest. These are smaller companies than in the upper market segments, and are therefore more vulnerable in times of economic crisis. One of the best ways of mitigating this risk is to put in place internal investment and portfolio monitoring processes of the highest possible quality.

This is difficult to achieve with the resources of a small independent fund. On the other hand, if the fund is part of a Large-Cap organization, it will benefit from the internal Large-Cap quality processes. These funds are also extremely attractive because they offer a superior return profile thanks to the many competitive advantages associated with being part of a quality Large-Cap organization. Firstly, they can have a pan-European strategy. Players in the Lower to Mid Market segment often do not have the resources to finance a multi-local organization with offices spread across Europe. In most cases, they only cover a single country, thanks to the existing pan-European infrastructure of their organization, which already manages a larger main fund. This type of fund has a pan-European or at least pan-regional strategy. A pan-European strategy not only enables us to navigate macroeconomic and market risks much more effectively than a single-country strategy, but also to be more selective in our dealflow. In terms of sourcing and value creation, the team can draw on the many assets of the Large-Cap organization to which it belongs - brand, reputation, depth and quality of track-record, pan-European or often global organization - which can be particularly differentiating when it comes to external growth. The contribution of operational resources and, above all, sector expertise. Small independent funds, on the other hand, are usually generalists. These are just some of the reasons why 1 manager will choose to work with this type of fund rather than with a small independent fund and

2 this type of fund has the potential to create value and thus generate higher returns. Now let's focus on the constants in our investment strategy. What are they? First of all, we continue to apply our quantitative criteria which enable us to filter our dealflow: fund size of at least 1 billion. A track record of at least 25 years. An indisputable and deep track-record of at least 20 years. A minimum of 3 billion under management. A team of at least 50 professionals, including at least five long-standing key partners. We also apply organizational quality criteria in an increasingly competitive Private Equity industry. We want to invest with managers who stand out thanks to two major elements: 1 sector specialization, 2 in-house operational resources, in addition to the investment teams, i.e. professionals who are part of the Private Equity firm's workforce and are capable of creating operational value in the portfolio companies, or even providing very practical assistance to managers across a whole spectrum of expertise. Finally, we look for funds in which the personal financial commitment of the manager is significant, to create a strong alignment of interest between our clients and our portfolio managers. These precise investment criteria shape our portfolios with the ambition of minimizing our risk profile, we seek to build a portfolio with an asymmetrical return risk profile, i.e. a high return profile for a low risk of loss.

You will therefore find in our portfolios and in this Vintage 2024, a number of recurring themes that enable us to achieve this objective. To conclude, I'm going to develop four of these recurring themes. The first theme is defensive exposure via managers with strong sector expertise. Our Vintage Altaroc have a target sector exposure of around 50% in technology, mainly software publishers, 20% in healthcare, 20% in services and 10% in consumer goods. This target exposure is very much oriented towards the new economy, where we find the fastest-growing sectors of the future, but also the most defensive business models. We seek exposure to these sectors via specialized funds, as they know the sectors in which they invest better than generalist funds. They have a competitive advantage in terms of sourcing and value creation. For example, the seven target funds of our Vintage 2024 all offer exposure via highly specialized teams to our target software sectors. Second recurring theme of returns generated with low use of financial leverage. Our preferred sectors are the growth sectors of the new economy. These are the target sectors of our Growth buyout and Growth Equity funds. We therefore favor Growth-oriented funds that create value primarily through the strong growth of their assets. Their portfolio companies use most of the cash they generate to finance their growth, and therefore cannot support high levels of debt.

As a result, our managers structure their operations with little debt, which 1 contributes to the low risk profile of our vintages Altaroc. 2 is very reassuring in a context of sharply rising interest rates and, consequently, rising debt costs. Third theme: a strong capacity to replicate past performance, thanks to the institutionalization of our value-creation approach. We are looking for managers who have enshrined their knowledge in what they call a "playbook", a manual of best practices that they are able to roll out repeatedly and constantly improve. These managers accompany successful companies in the best segments by developing ever greater expertise in their sector, and by successfully duplicating the same industrial recipes for management support that have contributed to the best deals of the past. And finally, the fourth theme is a quality Large-Cap organization for investing in Mid-Cap companies. As the Private Equity market is becoming increasingly competitive, we choose managers whose organizations are of Large-Cap quality, investing in the lower Mid Market, the Upper Middle Market or Large Cap. We believe that the best Private Equity firms are institutionalized. They are industrial players in Private Equity. Their performance is based more on established processes than on individuals, which allows us to be convinced of the future replicability of their historical performance.

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