If the profession of ” VC “(venture capitalist) became as “cool” as startupper in recent years, however, venture capital is only one of the facets of the capital investment (the funding of unlisted firms of all sizes), who, too, is doing very well. “The venture capital has figures that are remarkable, but this is not the only reality of the market : the whole of the capital French investment is accelerating,” said Olivier Millet, president of the French Association of investors for growth (AFIC), with the barometer of the sector conducted with the audit firm Grant Thornton on Monday this week.
In the first half, the players of the capital investment hex (innovation, development, transmission/LBO, and turnaround) has raised 8.1 billion euros of savings worldwide, up 30% year on year, of which two-thirds coming from French investors (public sector, insurers, funds-of-funds, industrial companies, family offices, etc). This augurs well for a new record on the year, after 14.7 billion in 2017.
“We beat records in fund raising and in the number of businesses supported, with nearly 1.200 startups, SMES and ETI accompanied in their growth,” noted Olivier Millet, who is also the president of the management board of Eurazeo PME. “This funding will irrigate a majority of the French economy over the next 4 to 5 years, with 84% of the companies supported have their headquarters in France. It is a carrier for the French economy, ” he insisted.
Capital invested in the businesses, the amount is growing from 16% to 6,39 billion euros, not to exceed the 2007 record.
[Amounts invested by the players of the capital investment. Credit AFIC]
Acceleration post-Macron in sight
Ardent support of the reforms of the president Macron and Prime minister Edouard Philippe, Olivier Millet believes that ” the context is more favourable than a year ago, which allows us to be reasonably optimistic “, making reference to tax measures such as the abolition of the wealth tax on securities, and the flat-tax to 30%. “Before Macron, there was already a dynamic, post-Macron, one can imagine that there will be an acceleration of confidence and a desire for growth” -he hoped, speaking of ” reconcile savings and French companies. “
The influx of capital has not involved a large single actor, such as the giant Ardian, the former Axa Private Equity, Astorg, or PAI, but 127 fund, a record there also. France has 300 investment companies, some of them very small.
“The growth trajectory of the capital-the French investment in recent years brings not only the goal of doubling the size of the exercisable in annual 20 billion euros by 2020, but also positions it to become the first market in Europe. Well before 2020, the capital investment in French would be to the uk market in funds raised and amounts invested “, assured Olivier Millet.
Already, the French professionals have raised in the course of the semester more than the investment fund, the british on the whole of the year 2016 (6.1 billion pounds or approximately 6.83 billion euros), which are subjected to the devaluation of the pound sterling and the first effects of Brexit.
“France has a fabric of non-listed companies, start-ups, SMES, ETI, remarkable and operators of capital-investment dynamic, ambitious and credible to the international. The ingredients are there for going faster than expected, ” said Olivier Millet.
If it was called “everyone to keep a cool head : raising funds is good, the use made of it is even more important,” the chairman of AFIC has evacuated the idea of a bubble.
“The value of the assets in the world has increased, because of the QE [quantitative easing, the accommodative monetary policy of central banks, ed.]. This is not specific to the non-side, it means that everything is expensive, especially on the u.s. stock markets.
The strength of the private equity does not pose systemic risk. As we have seen during the last financial crisis : if a fund commits a mistake, the others are not impacted. The thesis according to which there would be too much money in the capital-investment is a parse error, ” argued the president of ACEC.