#203 - François Jerphagnon and Alexandre Motte (Ardian) - The French Gem of Private Equity
Head of Expansion and Head of Co-Investments at Ardian
This is my final post of the year, penned while travelling by car from Valais to Luxembourg. Wishing everyone a wonderful New Year's Eve celebration! See you next year!
In this episode featuring Ardian, pinpointing the ideal focus was challenging due to the wealth of topics to explore with this trailblazer in the Private Equity sector. I guarantee that by the end of our discussion, you'll have an excellent overview of the French asset manager with USD 160 billion in assets under management.
During our conversation, François sheds light on the various activities of the group, with a special focus on Ardian Expansion, the division he heads. Alexandre, on the other hand, shares insights about the co-investments he oversees.
You'll get an insight into the team dynamics, their interaction, and their strategies for capital deployment. We also spend significant time discussing ESG considerations, a crucial aspect of any business.
Co-investment
In co-investment, LPs like pension funds invest directly in companies alongside GPs, primarily PE funds. This approach allows for broader diversification across managers, sectors, strategies, and regions, coupled with a more rigorous selection of transactions.
Ardian's co-investment activity involves acquiring minority shares in Buy Out deals across Europe, the US, and Asia, working alongside leading PE firms. Alexandre explains how their unique market position helps them to spot these co-investment opportunities. This is largely thanks to their secondary and primary platform, which provides exclusive access to key players in the private investment market.
What happened in 2023?
The success of co-investments in 2023 can be attributed to several factors: the opportunity to collaborate with multiple GPs, a more advantageous cost structure that improves returns for investors, more consistent and market-aligned capital deployment In today's market environment, co-investments are especially appealing. They also offer a practical way to diversify investment portfolios.
While competing with continuation vehicles, co-investment funds still stand out as a valuable tool for enhancing returns and reducing risks. Unlike PE funds, which offer diversification by investing in a range of funds and strategies with limited investor involvement, co-investment funds provide the opportunity for direct participation in select investments. This approach enables investors to develop broader, more versatile investment skills.
Ardian
Ardian, founded in 1996 by Dominique Senequier, is an independent private investment company. It stands among the top global PE firms, known for its diverse investment strategies. Initially, it started as AXA Private Equity, part of the AXA insurance group.
Ardian's activities cover several areas of private investment: Buyouts, co-investment, Growth, infrastructure, real estate, and credit.
The portfolio can be found 👉 here.
In numbers:
USD 160 billion in assets under management,
1050 employees,
19 offices.
I suggest looking into NAV Financing. From 2018 to 2022, Ardian's NAV Financing initiative has provided more than USD 3 billion in support of acquiring or recapitalising secondary portfolios
Ardian Expansion
The team led by François manages or advises on USD 5 billion of assets. It consists of over 30 investment professionals spread across four offices. To date, this team has made 66 investments in current and past companies within its portfolio.
The team takes either minority or majority shares in companies, offering more than just funding. They also provide strategic and operational guidance, which may involve helping with geographic expansion, improving the product and service range, and executing build-up strategies.
One of the main aims of Ardian Expansion is to harness Ardian's experience and resources to generate value for the companies it invests in and for its investors.
🎧 Listen here
Ardian (🇫🇷)
Spotify / Google podcast / Deezer
👋 Contacts
François Jerphagnon et Alexandre Motte / Ardian
Sources: Ardian, PE International, Schroders.