INVESTMENT CAPABILITIES

Private Equity



2.1BN* Of assets under management
Fichier 6
3 Activities Primary funds of funds, secondary funds of funds, dedicated funds
13 Professionals
Fichier 2
* As of 31/03/2019

ODDO BHF Private Equity (Ex-ACG Capital) is the ODDO BHF’s management company dedicated to Venture capital.

ODDO BHF Private Equity (Ex-ACG Capital) is a management company dedicated to private equity.

With more than €2 billion in assets under management, ODDO BHF Private Equity ranks among the leading Private Equity companies in France.

ODDO BHF Private Equity has longstanding experience of investing on behalf of institutional investors. Resulting from the merger of Groupama Private Equity and ACG Private Equity, the firm invested its first buy-out programmes from the late 1990s on behalf of Groupama and Generali, via dedicated funds.

Since then, the company has expanded its geographic scope and added new areas of expertise in fund of funds activities.

The ODDO BHF Private Equity team includes thirteen professionals in investment and support departments.

ODDO BHF Private Equity is a portfolio management company authorized by the AMF under the number GP99031.

A RESPONSIBLE INVESTOR

In 2008, ODDO BHF Private Equity signed the first Private Equity Investor Charter sponsored by France Invest, the French private equity association.

Along the same lines, in 2014 ODDO BHF Private Equity signed the Principles for Responsible Investment, undertaking to:

  • Promote acceptance and implementation of the Principles within the investment sector

  • Report on its activities and progress in implementing the Principles

What is Private Equity?

Private Equity consists in investing in unlisted companies with a potential high-growth, on a medium-long term.

The Private Equity firms support companies in all stages of maturity:

  • Providing funding at critical stages of their development.

  • Accompanying managers in strategic decisions.

  • Improving growth which benefits customers, shareholders, employees and management.

Why Private Equity?
  • Private equity has outperformed all other asset classes over the long-term

  • Its synergies compared to other asset classes: an optimization of risk-return profile due to portfolio diversification and a low correlation with equity markets

  • Its socially responsible investment nature, characterized by Private Equity support to the development of the fastest growing and most innovative companies.

How to build a Private Equity portfolio?

Institutional investors have three ways of investing in Private Equity:

investor
Establishment of a direct investment program
Number of companies in the portfolio: 10 to 15
Advantages and disadvantages: control of targeted strategies and the profile of the underlying investments; but a concentrated portfolio without geographical diversification. Difficulty of access to files and requiring a dedicated team with appropriate expertise.
Corporate
Live team selection
Number of portfolio companies: 10 to 20 funds and 100 to 250 companies
Advantages and disadvantages: diversification and moderate risk profile but difficulty in accessing the best teams and difficulty in exhaustive analysis. Relatively large capital and skilled personnel requirements to achieve optimal diversification (> 15 to 20 funds).
Direct funds
Investment in a fund of funds
Number of companies in the portfolio: 20 to 30 funds and up to 500 companies
Advantages and disadvantages: accessible from low investment amounts. Low risk profile due to very high diversification. Access to the best teams is guaranteed.
Funds of funds

Due to their complementary characteristics, these approaches could be combined, depending on the investors risk profile. An investor may blend direct funds, because of their geographical proximity, and funds of funds, covering distant geographical areas or market segments requiring greater technical expertise.

The level of Private Equity allocation will depend on multiple factors:

  • The investor’s liabilities structure.

  • Its cash-flow.

  • Its risk/return profile.

  • Its resources of selecting and monitoring investments.

Secure access to Private Equity requires the implementation of a structured and professional approach in order to control risks and constraints:

  • Seeking outperformance in Private Equity requires an established approach of selection due to performance’s great dispersion among Private Equity actors.

  • Due to investments’ medium-long term life cycle, it is essential to implement a multi-year investment strategy in order to ensure portfolios’ gradual and steady cash-flows.

Given its low liquidity, Private Equity portfolio needs a greater diversification:

  • By nature (venture, growth, mezzanine, secondary etc.) and/or sector of activity

  • By geography

  • By vintage (to mitigate economic life cycle and specific funds fluctuations of a funds family)

  • By regulatory information

  • By type of risk (co-investments, direct funds or funds of funds)

In building its Private Equity allocation, an investor should consider the asset’s liquidity criterion over the long term. Distribution could be received with an uneven frequency and after a cycle of about 3 to 7 years.

An optimized Private Equity portfolio should be thought on the long-run, blending different structures and types of funds as well as investing over periods, through regular annual allocation.

Primary funds of funds

In primary investing, ODDO BHF Private Equity seeks GPs with a leadership position and proven track records, demonstrating true expertise over several economic cycles. Since its inception, the team has invested in venture growth and mid-market buyout in Europe and the United States. Subsequently, it successfully applied its rigorous market screening and selection process across most of the asset class sub-segments, as well as in the emerging markets.

The team focuses on building balanced portfolios by selecting the best private equity funds, in order to achieve optimal diversification by vintage, GP, strategy and geographic area.

Portfolio funds

Geographical area
  • Geographical area
  • North America
  • Europe
  • Emerging countries
GPStrategyGeographical area

In primary investing, ODDO BHF Private Equity seeks GPs with a leadership position and proven track records, demonstrating true expertise over several economic cycles. Since its inception, the team has invested in venture growth and mid-market buyout in Europe and the United States. Subsequently, it successfully applied its rigorous market screening and selection process across most of the asset class sub-segments, as well as in the emerging markets.

The team focuses on building balanced portfolios by selecting the best private equity funds, in order to achieve optimal diversification by vintage, GP, strategy and geographic area.

Secondary funds of funds
Mature assets
Small to 
mid-market transactions
Privileged RELATIONSHIP NETWORK

The secondary investment strategy focuses on small to mid-market transactions, a less competitive market segment where the team enjoys significant competitive advantages due to synergies with its primary activity.

ODDO BHF Private Equity purchases mature assets consisting mainly of European mid-market buyouts. Maturity allows for not only better risk control but also a quick return on investment.

ODDO BHF Private Equity also has the expertise to work on more complex transactions, usually known as “non-traditional”, in order to diversify its portfolio and seek higher returns.

To this end, ODDO BHF Private Equity benefits from a privileged network of relationships with both buyers and sellers, thus generating an abundant and high-quality deal flow. The primary activity gives the team extensive access to information, fast and accurate analysis of underlying assets, as well as optimized execution.

Nicolas CHAPUT
President & CEO
Mathieu BOURDIÉ
Chief Financial Officer
Vincent CHAPUIS
Portfolio Controller
Ferdinand DALHUISEN
Managing Director
Salima LOUZANI
Associate
Jérémie MAGNE
Director
Jérôme MARIE
Managing Director
Gilles MICHAT
Managing Director
Olivier NABET
Portfolio Controller
Jean-Marie PALFFY
Chief Financial Officer - funds
Félix RAOUL
Principal
Biné TAMBOURA
Back-Office Manager
Pierre VALLADE
Associate