
Investing in a private equity fund
What is private equity?
Private equity is defined as investments in private companies to finance their early development, growth, sale or transfer. Depending on the size and the maturity of the underlying companies, it is possible to invest in this asset class through various types of funds, each of which have a specific role in the life cycle of the company:
Venture capital: Investment in innovative start-ups.
Growth capital: Supporting the expansion of established companies.
Leveraged buyouts (LBOs): Acquisition of companies using equity or debt.
Private debt and infrastructure funds, financing long-term infrastructure projects, are also available on the market.
Private equity is also characterised by a strong alignment of interests between managers and investors, as well as managers’ active involvement in value creation.

Why invest in private equity funds?
Private equity is a key driver of economic growth. It helps businesses grow, creates jobs and elevates new generations of entrepreneurs. It is also a way of diversifying your investment portfolio alongside more traditional asset classes.
How do private equity funds work?
Unlike a direct investment in a private company, when you invest in a private equity fund you delegate value creation to experts and commit to an investment horizon of around 10 years. Our team of experts carefully curates our private equity funds by performing an extensive multi-criteria analysis of the management teams and their strategies.

How do I invest in private equity funds?
We offer a diverse range of private equity funds through Societe Generale Private Banking France’s Real Assets team, Societe Generale Investment Solutions (France) and Societe Generale Investment Solutions (Europe). We select our funds for their value-creation potential and for their alignment with our investment strategies.
Our experts provide you with tailored support throughout the investment process — from determining your investment goals and horizons, selecting funds, to committing capital and monitoring performance. Using our expertise, we work with you to draw up a relevant asset allocation strategy that aligns perfectly with your financial goals.
With you every step of the way
#1
First meeting: You meet with you dedicated banker and, if required, your Societe Generale Private Banking investment advisor.
#2
Assessing your profile: Together, you assess your investor profile, your private equity investment capacity, your investment horizon, the amount available for investment, as well as any private equity allocation you may already have.
#3
Consulting with an expert: A meeting with one of our private equity experts can be arranged if their input is required.
#4
Our investment proposal: Based on your investor profile, we can offer you an opportunity to invest in a private equity fund.
Questions/Answers
Our experts are here to guide your choice of fund by assessing your investment goals and analysing fund performance and strategy, while ensuring optimal alignment with your portfolio.
Illiquidity: A private equity investment is often illiquid with limited to zero redemptions possible.
Long investment horizon: Subscribing to a fund is a long-term commitment (around 10 years). The portfolio managers invest in underlying companies and create value over many years before selling the invested stake. You are paid a distribution in return, often in the final years of the investment.
Risk of capital loss: Investing in a private equity fund involves a risk of total or partial capital loss (excluding fees) resulting from the disposal of the asset at a price below the adjusted cost base.
Private equity and stock market investments differ primarily in terms of liquidity, access, investment horizon, potential returns and risk. Private equity is less liquid, reserved for investors able to make a long-term capital commitment, offers higher potential returns, but it is higher risk. Stock market investments are more liquid, accessible to the general public, more transparent, but are more exposed to market volatility. Choosing between the two will depend on your financial goals and risk appetite.
The returns generated by a private equity fund depend on the fund’s strategy, economic conditions and the performance of the portfolio companies. They generally outperform the returns of publicly-traded funds, but are not guaranteed and reflect higher risk as well as less liquidity.
Private equity funds cater to all client profiles. They may be suitable for an entrepreneur, a former entrepreneur, or an investor interested in the real economy and in search of performance with limited correlation to the public market. The investor profile you establish will determine this asset class is the right investment choice for you.