Private equity enables you to invest in unlisted companies. Your investment will be used to finance companies during the start-up or growth phase as well as to purchase companies. This type of investment enables you to avoid financial market fluctuations and can allow you to have an impact on the real economy by supporting companies from various sectors.
By mobilising investment beyond the short term, private equity has a long-term focus, favouring value creation and maximising the potential return on investment.
This value creation manifests itself in particular through the deployment of strategic plans aiming, for example, to grow the company’s market share whilst reducing its carbon footprint.
These ambitions require time. This is the benefit of unlisted markets; the time needed to create value. This lack of liquidity is made up for by a supplementary premium, known as the liquidity premium.