In today’s context of market volatility and low interest rates, Claire Roborel de Climens, Head of Private and Alternative Investments at BNP Paribas Wealth Management, explains why Private Equity represents a good opportunity for our private clients.
Private equity consists of investing in unlisted companies at different stages of their development, with the objective of creating value and then selling these companies a few years later with a significant capital gain.
BY INVESTING IN PRIVATE EQUITY, YOU...
SEEK ATTRACTIVE RETURNS
In a context of volatile market and low interest rates, Private Equity solutions are a real opportunity to seek sustainable and attractive returns.
Private Equity outperforms listed markets over the long term
DIVERSIFY YOUR WEALTH BY INVESTING IN PRIVATE COMPANIES
In a context of volatile market and low rates, Private Equity solutions offer a real opportunity to diversify your wealth.
Improve the risk-return profile of your portfolio
ACCESS THE REAL ECONOMY
Private Equity funds aim to support and grow the companies in which they invest. By investing in these funds you gain access to smaller, nimble companies which are frequently led by entrepreneurs. The following illustrates this:
PRIVATE EQUITY IS PRIMARILY ABOUT INVESTING AT KEY MOMENTS IN THE LIFE OF AN UNLISTED COMPANY AND HELPING TO SUPPORT ITS DEVELOPMENT
PRIVATE EQUITY: A TWO-STAGE STRATEGY, QUITE SIMPLE
A Private Equity manager creates a fund by raising capital, mainly among institutional investors, with a view to taking equity stakes in unlisted companies. For several years it supports the directors of these companies in the implementation of a value-added strategy.
A Private Equity fund generally has a legal life of several years. The first few years are the investment period, during which the fund gradually invests in the capital of unlisted companies. These holdings are then successively sold over the last years of the fund's life: capital and profits are distributed to investors.
*Past performance is not a reliable indicator of future performance. No guarantee is given on the success, profitability, return or benefit of this investment.
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