Amundi Private Equity Funds (PEF) has launched the first investment programme in non-listed European SMEs/mid-sized businesses benefiting from at least one of the five “megatrends”: technology, demographics, globalisation, the environment and societal changes.
The programme targets French and European investors seeking diversification and reaching out for yield in an environment of low interest rates. Amundi PEF aims to raise EUR250 million.
In recent years, megatrends have been acting as disruptive forces and shaking up the global economy in all sectors. Amundi PEF’s team has noted that despite the sluggish economic environment in Europe, many SMEs and mid-sized businesses are enjoying strong growth and what these companies have in common is that they all benefit from at least one of the five identified megatrends.
The investment programme seeks to take active minority stakes in private equity and buyout capital in companies with high-quality management, a convincing history of profitability, organic or external growth targets and robust financial fundamentals. As a signatory of the investors’ charter for growth, Amundi PEF applies ESG principles in selecting target deals with an average value of EUR10 million to EUR35 million and is looking for an internal rate of return (IRR) of 20 per cent gross per transaction.
Stanislas Cuny, head of direct private equity, Amundi PEF, adds: “With our active minority investment strategy, we have access to entrepreneurial and family-owned businesses whose managers are often reluctant to open up their capital to LBO funds taking majority positions. Our positioning in solid megatrends, which drive corporate growth and performance, is an excellent opportunity for both investors and our partner companies: in fact, we have just closed our first deal, worth EUR136 million.”
Pedro Antonio Arias, head of real and alternative assets at Amundi, adds: “We benefit from strong origination capabilities and an extensive business network through our partner networks in France and Europe, giving us privileged access to SMEs and mid-sized enterprises. Thanks to this activity and to the private debt activity, Amundi has become a leading player in helping businesses meet their financing needs.”
