PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Discipline in the face of volatility

Having a long-term perspective and remaining invested even in challenging times is critical to success in private equity, especially in the secondaries market. Bertrand Chevalier, Senior Managing Director Secondaries and Primaries, Ardian, discusses the key factors to consider when investing in this growing sector.

PARTNER CONTENT

Having a long-term perspective and remaining invested even in challenging times is critical to success in private equity, especially in the secondaries market. Bertrand Chevalier, Senior Managing Director Secondaries and Primaries, Ardian, discusses the key factors to consider when investing in this growing sector.

Can you outline the industry trends which have been driving growth and development within your firm over the past year?

The secondaries market has been growing rapidly in recent years, with volumes surpassing $100 billion for the second consecutive year in 2022. Institutional investors are gaining a better appreciation of the market and its role in helping them actively manage their portfolios. In fact, adoption is increasing. In addition, the current economic climate is leading more institutions to need to rebalance their portfolios, specifically their exposure to private equity. This so-called denominator effect is creating further opportunities for investors like us. These dynamics, along with our granular, focused investment approach, has been a strong driver of growth for Ardian Secondaries over the last year.

What are your business objectives for the year ahead and how do they align with the needs of your clients?

Our business objectives for the year ahead remain consistent with our long-term investment strategy. Ardian was an early mover into the secondaries market, which has given us an advantage in originating deals, particularly at the larger end of the market. We stayed active as a buyer, despite the volatility in 2022 and expect to remain so this year. Our clients are looking for stability and good returns, so our granular focus on high-quality, long-term investments helps us align with our clients’ needs. We have also invested considerably in our IT capabilities. This provides us with the data necessary to analyse potential investments in a methodical way, while also ensuring we have the right information so we can be reactive and move quickly when new opportunities arise.

How can you best ensure you deliver value-add to your client base?

In line with our strategy of investing our capital carefully and wisely, we add value for our clients and help them take advantage of the growing market opportunity. Specifically with secondaries, it is important to deliver the right risk-return profile, with a high level of diversification towards the best quality buyout funds. Differentiating ourselves by focusing on the larger end of the market, where there is less competition, is key to adding value for our clients. We also place high importance on having the right team and investing in monitoring and IT capabilities to equip our team to make the best possible investment decisions.

What is your outlook for the private equity space for the coming year and how is your firm best placed to support clients navigate the environment?

We are optimistic about the continued growth of private equity, both in the primary and secondary markets, despite the current challenges. At Ardian we strongly believe that private equity-owned companies benefit greatly from the knowledge and expertise of investment teams and can deliver long term outperformance compared to peers. In the secondaries market, we therefore see further opportunities to develop and to expand over the coming years. Our proven track record of success in delivering returns means we’re best placed to support clients by sticking to our long-term, quality rooted investment strategy.

Can you list three key learnings you are passing on to clients in the current environment

The key three learnings that we’re passing on to clients also form the basis of our investment strategy. First, the importance of taking a long-term view – we have helped clients navigate investing through multiple market cycles and can harness this experience to identify opportunities. Secondly, remaining disciplined in the face of market volatility is critical. Our strategy to identify and invest in quality assets has delivered consistently good returns, even in the face of macroeconomic headwinds. Finally, the importance of having a talented team should not be underestimated, so we prioritise investing in our people to ensure this remains a competitive advantage.


Bertrand Chevalier, senior managing director secondaries and primaries, Ardian – Bertrand Chevalier joined Ardian in 2006 as a financial controller. Mr Chevalier became a Corporate Officer, supporting Ardian’s then COO, in 2009 before eventually joining the Secondaries & Primaries Team in 2011. He is primarily responsible for coordinating both primary and secondary activities for Ardian Secondaries & Primaries in the European market.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured