Download 1 FRENCH PRIVATE EQUITY ACTIVITY IN 2015 • MORE THAN

PRESS RELEASE
Paris, Mach 29th 2016
FRENCH PRIVATE EQUITY ACTIVITY IN 2015



MORE THAN 10 BILLION EUROS INVESTED, THE HIGHEST IN 8 YEARS
10 BILLION EUROS IN FUNDRAISING
INCREASE IN VENTURE CAPITAL INVESTMENT
The French Association of Investors for Growth (AFIC, French association for private equity and
venture capital) and Grant Thornton are happy to present their study on the activity of French
private equity in 2015.
Michel Chabanel, the President of the AFIC noted, “2015 was a good year. The 10 billion euro
threshold of investments and fundraising is all the more satisfying given the increase in venture capital
investments. Nevertheless, we are still behind the 20 billion euros invested in unlisted businesses in the
UK. With an aim at fostering durable economic growth in France, our goal moving forward is to
increase our resources in order to continue to support young, talented French entrepreneurs and
transform small French companies into middle-market European or global businesses. The upcoming
French presidential elections are the right time to direct the great wealth of French savings towards
investments in the real-world economy, which will create tomorrow’s jobs.”
MORE THAN 10 BILLION EUROS INVESTED, THE HIGHEST IN 8 YEARS
In 2015, the French private equity industry invested 10.7 billion euros in transformative businesses.
This represents a 23% increase compared with 2014’s investments and an 8-year highpoint.
Once again, more than 1,600
businesses—1,645
to
be
precise—received the support
of members of the AFIC. The
majority of these companies
were small businesses (78%).
The others were middle-market
companies (21%) and large
businesses (1%). 85% were
French.
The venture capital indicators
are very positive. Both the
number of businesses supported (499) and the amounts invested (758 million euros) are at record
highs. Moreover, there has been a 67% increase in the intended allocation of funds raised with 1.4
billion euros intended for venture capital in 2015 vs 0.8 billion euros in 2014. It will be important to
1
move forward in this direction in order to meet the needs of the French Tech and contribute to the
rapid growth of French businesses in all sectors of the economy.
Growth capital supported 866 businesses (53% of the total 1,645 businesses) with 3.9 billion euros of
investment, an increase in investment of 48% from 2014. The 261 businesses under LBO benefited
from 6.1 billion euros of investment, an increase of investment of 12% since 2014 for a total of 57% of
total private equity funds invested.
The average amount invested by business was 6.5 million euros. The average was 1.5 million for
venture capital, 4.4 million euros for growth capital, and 23.4 million for LBOs. In total, more than 50%
of businesses received less than 1 million euros, and 87% of investments were greater than 5 million
euros.
Record sums were invested in traditional sectors: 2.6 billion euros in industry (double the 2014 level),
2.6 billion euros in services and transportation (up 50% since 2014), and 1.8 billion in the forwardlooking digital sector (more than 4 times the amount in 2014).
10 BILLION EUROS IN FUNDRAISING
In 2015, France, viewed from a
private equity standpoint,
remained attractive with 9.7
billion euros in fundraising to
be put to use in the real-world
economy by the 77 French
private equity firms that
collected this sum. This level
(down
4%
since
2014)
approaches the pre-crisis level
(an annual average of 10.5
billion between 2005 and
2008). As in the two previous
years, 2015’s fundraising did not include any operation exceeding the 1 billion euro mark. This signifies
a better fundraising distribution for all private equity professionals.
As for the kinds of subscribers, we noted a 24% decrease in fundraising for funds of funds since 2014
with 2.1 billion euros collected (21% of total fundraising), a fundraising increase for individuals and
family offices (1.6 billion euros collected or 16% of total fundraising). The portion of insurance
companies is now approaching its pre-crisis levels (1.6 billion euros in 2015 vs a 1.9 billion 2006-2008
annual average). This level is still insufficient given the available reserves of savings. Industrial actors,
although they represented only 4% of the total annual fundraising, more than tripled their investments
(364 million euros vs 111 million euros in 2014).
French investors were behind 71% of the fundraising, and foreign investors confided 3 billion euros to
members of the AFIC. This is a positive sign of France’s attractiveness and economic perspectives for
the next 3 to 5 years, as well as a sign of confidence in French private equity to deliver lasting
performance. The percentage of foreign investors is proportionally greater for fundraising operations
larger than 200 million euros, with 35% of operations over this amount taking place abroad vs 15% for
operations under the 200 million euro mark.
A RECORD HIGH FOR DIVESTMENTS
2
2015 was a record year for divested companies (1,209). Moreover, the cost was at an historical low,
down 30% since 2014, but still higher than the 4.9 billion long-term annual average for 2006-2014.
Businesses were sold to industrial actors (first-place in terms of the number of operations with 249
businesses sold for 1.3 billion euros), private equity firms (first-place by the total price of sales with 1.9
billion euros for 189 operations). This second figure confirms the importance of long term investors.
We also noted a large increase in businesses being sold to management with 38% more operations
(233 vs 169 in 2014) for 0.6 billion euros vs 0.4 billion euros in 2014 (a 52% increase).
Thierry Dartus, a Grant Thornton partner and head of the Transaction Advisory Services department,
remarked, “with an exceptional level of investment that surpasses pre-crisis levels and an historic
number of divestments, 2015 confirmed the high level of activity observed since 2013 on all segments
of the market. The French private equity market, with an abundance of funds, has confirmed its
commitment to financing innovation, growth, and the transmission of businesses, as we can see from
the number of operations and the increase in the average amount invested in each business on all the
segments of the market. The activity of the next months will rely on this solid equity foundation, which
will allow businesses to continue to create value.”
All statics concerning the activity of the French private equity market in 2015 are available at
www.afic.asso.fr/statistiques.
ABOUT THE AFIC
The AFIC brings together almost all of the private equity funds active in France and has about 280 active fund members. Through its strict
deontological framework and its mission to develop best practices, the AFIC is one of two associations recognized by the Autorité des
Marchés Financiers (French Financial Market Authority) where private equity firms are legally required to be members in order to practice. It
is the only professional association specialized in private equity.
The AFIC’s priorities are to promote and actively develop French private equity by bringing the profession together and establishing best
practices for responsible professional investors.
FOR MORE INFORMATION, PLEASE CONSULT THE AFIC’s WEBSITE.
ABOUT GRANT THORNTON FRANCE
Grant Thornton, leading audit and advisory group, has 1,600 employees in France, including 110 partners in 22 offices, with positioning in five
business lines: audit, appraisal consulting, financial consulting, operational & outsourcing consulting, and legal and tax consulting. Grant
Thornton supports dynamic companies (listed companies, public and private companies) to enable them to free up their growth potential
with the help of involved and dedicated partners supported by teams with very high value-added expertise. The members of Grant Thornton
International make up one of the major audit and advisory organizations in the world. Every member of the network has full financial, legal
and management independence.
FOR MORE INFORMATION, PLEASE CONSULT the www.grant-thornton.fr.
PRESS CONTACTS
AFIC: Antoinette Darpy |+ 33 6 72 95 07 92 - [email protected]
Grant Thornton: Agnès de Ribet |+ 33 1 56 21 06 34 - [email protected]
3