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Preqin unveils 2024 insights on private equity in France

Preqin unveils 2024 insights on private equity in France
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Christoph Knaack, Preqin CEO | Preqin

Preqin has released a fact sheet titled "Private Equity in France 2024," which highlights key sectors such as healthcare, technology, and energy following political shifts in 2024. The consolidation of private equity funds in 2023 led to increased capital raising with fewer funds, supported by government initiatives.

According to Preqin, the consolidation of private equity funds in 2023 resulted in an increased average fund size of €673 million, indicating a trend toward fewer funds managing larger capital amounts. Notable fund closures included Astorg VIII at €4.4 billion in May 2024 and Latour Capital IV at €1.2 billion in June 2024.

The French government's France 2030 initiative has emphasized investment in sectors like healthcare, technology, and renewable energy to foster innovation and economic development. This focus has enhanced France's appeal as an investment destination. According to Preqin, 55% of capital entering France-based funds in 2022 came from international investors, surpassing the ten-year average of 49%.

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The involvement of the sovereign wealth fund BPI France, along with industry association France Invest, underscores ongoing efforts to boost private capital investment amid political changes following Emmanuel Macron's re-election in July 2024. Collectively, they invested €36 billion in 2022.

Private equity fund managers in France have seen a significant rise in assets under management (AUM), increasing from €75.2 billion in 2014 to €242 billion by the end of 2023. Despite challenges in deal-making, managers deployed €157 billion in 2023. However, the proportion of dry powder—unallocated capital—has fluctuated since 2018 due to market uncertainties. If these issues improve, dry powder may represent a smaller share of AUM moving forward.

Preqin was founded in 2003 and serves over 48,000 clients with data on alternative assets through its team of more than 1,500 staff across global offices. The company specializes in delivering data and insights to enhance decision-making within the finance sector.

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