LBO France and Keys REIM form partnership to facilitate distributors’ access to private equity offerings dedicated to high net worth clients
Paris, 8 September 2022 – LBO France continues to build momentum in the distribution of funds dedicated to high net worth clients. Through Keys REIM[1], LBO France will be connected to a large network of wealth management advisers (CGP-CIF) in the French market who, despite initiatives to democratise the market, still have limited access to offerings that are mainly reserved for institutional investors.
A tailor-made offering for high net worth clients and entrepreneurs
A specialist in private equity for 35 years, LBO France has expanded its offering in recent years to include investment solutions for non-professional and semi-professional investors.
In 2018, LBO France launched approved multi-strategy funds aimed at non-professional clients who invest directly or through funds managed by LBO France in profitable, growing French or European unlisted small-cap[2] or mid-cap[3] companies, as part of capital development or capital transfer transactions, as well as in real estate through units in funds managed by LBO France. Since its inception, the FCPR White Caps Sélection fund, which closed to new investors in June 2019, has already made 18 investments, three of which have already been sold at an average multiple of more than 3.5x.
In 2020, LBO France also decided to create offers aimed at professional investors who have sold their businesses and are reinvesting under the contribution-transfer mechanism in accordance with the 150-OB Ter tax regime.
These offerings represented LBO France’s first foray into the wealth management market, involving a select number of wealth management advisors and financial investment advisors to help build its offering.
Since 2021, LBO France has been considering the best way to make its funds more accessible to CGP-CIFs. This consideration has resulted in the establishment of a partnership with Keys REIM, which will enable new CGP-CIFs to access the funds marketed by LBO France.
LBO France will thus be able to present approved open-ended funds and solutions designed for investors who have sold their businesses and wish to reinvest under the contribution-transfer mechanism in accordance with tax provision 150-O B Ter.
LBO France, one of the pioneers in the field of private equity, which has now become a multi-specialist investment platform, will thus be able to rely on the CGP-CIF partners introduced by Keys REIM to expand its distribution network.
Strong demand to be players in the real economy
“This partnership is the result of careful consideration, but also of an observation of the advantages of investing in unlisted companies and their attractiveness to private individuals. Today’s investors are better informed, more demanding in terms of returns and associated risks, and above all, they have a better understanding of the role they can play as economic players. As a result, they are more than ever in search of meaning, understanding and stability in their investment decisions,” says Johan Didouche, Head of Wealth Management at LBO France.
With €4.3 billion raised in 2021, retail investors and family offices are now the second largest source of private equity financing in France. As such, LBO France felt it was important to make these offerings more accessible to the world of intermediary distribution in order to respond to growing demand.
“With private equity attracting growing interest from investors, this partnership with LBO France will enable CGP-CIFs to offer a comprehensive and consistent range of investment solutions,” emphasises Grégory Neulat, Managing Director in charge of Development at Keys REIM.
[1] Keys REIM does not directly or indirectly market the investment products managed or offered by LBO France. The partnership between Keys REIM and LBO France involves Keys REIM connecting with a network of French CGPs and CIFs.
[2] Small businesses.
[3] Medium-sized businesses.
[4] Source: France Invest 2021 study.
