HIGH GROWTH MARKETS TRADE AND INVESTMENT WEEK IN PARIS AND IN BORDEAUX

CONFERENCE ON TRADE AND INVESTMENT BETWEEN FRANCE AND HIGH GROWTH MARKETS: BRICS & MENA
NEW ENERGIES, SUSTAINABLE DEVELOPMENT, RAW MATERIALS AND COMMODITIES + FOCUS ON THE MIDDLE-EAST in June 2016      
INFRASTRUCTURE, TRANSPORT & DEFENCE + FOCUS ON SOUTHEAST ASIA in June 2017              IN PARIS AND IN BORDEAUX

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PRIVATE EQUITY

Private equity is a form of investment by which an investor devotes part of his or her equity or capital under management to the development or buyout a company (or division) needing growth, transmission, adjustment, expansion, new product development or restructuring of its operations, management or ownership.


In return for the investment risk and the long-term immobilisation of the capital, the return expected on the invested capital is generally higher than the one on the stock market, taking into account the non-liquidity of this investment for often several years. The investor does not just invest but usually accompanies the company in the portfolio with practical advice to accelerate its development and optimise its management.


Private equity is the injection of funds into a company and the entry of investment fund into the capital of companies that need equity. In some cases, there is no capital injection but buyback of the shares held by the historical shareholders. It also happens that the investment is made in the form of convertible bonds and derivatives (options, warrants of new shares in particular).


Companies that make up a portfolio of equity investments in private equity transactions are holding companies or specialised investment funds private or public, of industrial or financial origin (institutional with notably pension funds, insurers and banks), or wealthy and experienced individuals (business angels or angel investors). Their participation can be unilateral or cross. The private equity operations are carried out by purchasing existing securities from former shareholders, or by providing new funds to the company, in the form of subscription for securities newly issued by it (capital increase).

These operations often rely on leverage, favoring debt financing (bank loan).


Private equity comes in many forms:

  • Seed capital to finance entrepreneurial projects that are still in the research and development stage;
  • Venture capital to finance the start-up of new businesses;
  • Growth capital to finance the development of the company;
  • Leverage Buyout or LBO intended to accompany the transmission or the transfer of the company;
  • Distressed investment to help the recovery of a company in difficulty;
  • Mezzanine capital in debt and equity financing; 
  • Sovereign wealth funds that allow a state to invest excess cash from a specific activity.

We raise funds and manage the capital to yield favourable returns for our shareholder clients under an investment horizon between 4 and 7 years at which time we will look to sell or exit their stake either on the stock market, to a corporate buyer or to another investor.

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