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#InPrivate Episode 9 - Why invest in Private Equity by Maxime VANNEAUX, our Director of Partner Relations

A new episode in our mini-series about private equity! In this episode, Maxime VANNEAUX, Private Corner's Director of Partner Relations, takes the floor! He reviews the contribution of private assets to the construction of a global allocation. For him, Private Corner can be summed up in 3 words: #Entrepreneurship, #Innovation, #CustomerSatisfaction.

Are you a private investor or a private banking professional acting on behalf of clients? Contact our experts to find out more about our solutions for investing in unlisted assets:

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Watch the video on the benefits of diversifying your portfolio with private equity

Why diversify your portfolio with private equity?

In our view, there are several advantages to diversifying your portfolio with unlisted solutions. The first is potentially higher returns. Unlisted investments have the potential to generate higher returns than investments in more traditional assets, such as equities, bonds or real estate. This is partly due to the fact that unlisted managers can add significant value by restructuring and improving the performance of portfolio companies.

One figure: 5.6% is the outperformance generated by unlisted shares over the long term compared with other asset classes.

Discover our investment offer in unlisted funds

Second advantage: low correlation with other assets. Unlisted returns tend to be weakly correlated with those of more traditional assets. This means that adding private equity to one's portfolio can help reduce volatility and therefore improve risk-adjusted returns.

Third advantage: access to unique investment opportunities. Private equity managers can, by definition, only address the unlisted universe, offering their investor clients opportunities to participate in segments that would otherwise be inaccessible.

Here again, the 99% figure. In France, 99% of VSE, SME and ETI companies are unlisted.

And last but not least, protection against inflation. Unlisted solutions can provide a degree of protection against inflation, insofar as unlisted managers can decide with entrepreneurs to increase the price of products and services for portfolio companies, thus providing a shield against inflation.

In conclusion, we at Private Corner are convinced that investment in non-listed companies has its place in a diversified portfolio, provided of course that investors respect the prerequisites of a long investment horizon and the risk of capital loss and liquidity. This will enable them to seek long-term capital growth. Entrepreneurship, innovation and customer satisfaction.

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