L'AGEFI - Archinvest launches a multifund dedicated to secondary private equity.

Archinvest, a BtoBtoC management company providing retail investors with access to private markets, has just received the go-ahead from the Autorité des marchés financiers to launch a new strategy dedicated to secondary private equity, L'Agefi has learned.

This authorization marks a significant step forward for Archinvest, broadening its offering and giving retail investors access to opportunities usually reserved for institutional investors.

This multifund offering, accessible from 100,000 euros, will give subscribers exposure to the latest funds from secondary managers Alpinvest, a subsidiary of Carlyle, Bex Capital and Glendower, a subsidiary of CVC. Each of these fund managers is recognized for its expertise and solid performance in secondary private equity.

Alpinvest

Alpinvest, a major player in secondary private equity, has been particularly active in recent years in so-called "GP-led" transactions (initiated by the fund manager), and in particular in continuation funds. These funds enable fund managers to extend the life of their investments, offering greater flexibility and additional valuation opportunities. Alpinvest has invested alongside French managers in continuation funds such as IQ-EQ with Astorg, Sagemcom with Charterhouse and Sicame with Equistone. Currently raising its eighth vintage, Alpinvest is aiming to raise an impressive $10 billion, underlining its position as market leader.

Bex Capital

With offices in Nice and New York, Bex Capital adopts a highly original strategy, dedicated exclusively to buying up positions in funds of funds, secondary funds and co-investment funds. This unique approach sets Bex Capital apart in the secondary private equity market. Bex Capital is currently in the process of raising funds for its fifth vehicle, with an ambitious target of one billion dollars.

Glendower

Glendower, acquired by CVC in January 2022, is another major global player in secondary private equity, managing $12 billion in assets. After raising $5.8 billion in July 2023, Glendower is on the road again to raise its sixth vehicle, with at least a similar target. This ongoing fundraising illustrates investors' confidence in Glendower's ability to generate attractive returns.

The Secondary strategy:

Archinvest's new strategy, targeting around 40 million euros in subscriptions, completes its offering of access to private markets. Archinvest had already launched a European large cap LBO multifund and a private debt multifund, consolidating its market position. The company, founded in 2022 by Emilie Loyer Buttiaux and Pierre-Olivier Desplanches, currently boasts €200 million in assets under management and hopes to reach €300 million by the end of the year, with further strategies scheduled for launch later this year.

Investing in secondary private equity offers several key advantages. In times of high interest rates, the market is not conducive to outflows, which drives down asset values. Institutional investors seeking liquidity often turn to secondary funds. These funds are currently enjoying a very favorable dynamic in terms of opportunity volume and discount. Advantages for investors include purchase discounts, shorter holding periods, accelerated distributions, increased diversification and attenuation of the "J-curve" that often characterizes private equity investments.

This increased diversification enables investors to spread their risk over a wider range of assets and sectors, improving the resilience of their portfolios. The shorter holding period and accelerated distributions offer faster liquidity than investments in primary funds. What's more, buying at a discount enables investments to be made at attractive valuations, boosting potential returns.

In conclusion, Archinvest's new secondary private equity strategy opens up new prospects for individual investors, giving them access to funds managed by market leaders such as Alpinvest, Bex Capital and Glendower. With this initiative, Archinvest continues to diversify its offering and strengthen its position in the private equity market, while offering its customers attractive and diversified investment opportunities.

---

(Reference to the article written by Florent Le Quintrec on "L'AGEFI").

🏳 Disclaimer: This is an advertising communication. Please refer to Archinvest's fund regulations and key information document before making any final investment decision. Investing in unlisted securities involves risks of capital loss and liquidity. Archinvest is a fund management company approved by the AMF under number GP-202221.