French private equity outperforms other assets

The latest annual report by the Association Française des Investisseurs pour la Croissance together with EY, suggests French private equity equity outperformed other asset classes in France through the past year by some margin.

According to their figures, annual IRR net of charges averaged 10.1% as measured at the end of 2014, up from 9.5% in 2013. Over 10 years, the IRR was 11.3% net, up from 10.9% as measured at the end of 2013.

AFIC and EY said that this compares well against the 10 year average return of 4.8% for the CAC 40 index, and 5.8% against the CAC All-Tradeable. Bond and real estate markets returned 5.4% and 6.4% respectively over the period.

Michel Chabanel, chairman of AFIC, said: “French private equity returns, which outperform all other asset classes, reflect the quality of this type of financing and support provided to companies. In addition, this outperformance went hand-in-hand with low volatility and, therefore, lower risk. Work conducted by some 275 private equity teams in France helped bring to life growth projects ranging from start-ups to mid-tier companies. Another source of pride is that, by channeling savings into the real and local economy, private equity makes a major contribution to employment, creating more than 250,000 jobs over the four-year period between 2010-2013, whereas the commercial sector as a whole lost 60,000 over the same period.”

Hervé Jauffret, partner at EY, adds: “2014 confirmed the robust performance observed at end 2013 with French private equity 10-year performance fixed above 10% over the past few years.”

Click here to read a fuller summary: AFIC-Etudes-2015-Performance-nette-2014

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