Private assets

Private equity co-investment strategy

Between 2010 and 2022, the total capital raised for private equity co-investments increased from USD 4 billion to USD 10.3 billion.1 These minority equity stakes allow investors to participate directly in hand-picked companies alongside a General Partner (GP) or financial sponsor, providing lower fees and diversification than traditional private equity investments.

Investment philosophy

The team aims to build a resilient and diversified portfolio of minority equity investment alongside high quality GPs across a wide range of industries. It seeks an optimal risk/return profile by implementing an active portfolio construction strategy through a combination of investment themes and transaction types.

Investment process

The strategy follows a five-step investment, execution and monitoring process to ensure integrating ESG3 criteria both at GP and company level: 

  • Deal flow meeting
  • Screening committee
  • Investment committee
  • Execution
  • Monitoring and exit

Team and resources

The team consists of 15 investment professionals across Paris, Brussels and Madrid.4 It managed private equity co-investments for BNP Paribas’ account from 2008 to 2019 and subsequently opened co-investments funds to third party investors in 2020 including BNP Paribas Agility Fund (€739m raised in 2020-21 and fully deployed over 2020-2023) and BNP Paribas Agility Co-Invest Fund 2 (first close November 2024).5

Fully integrated within BNP Paribas’ 100+ strong Private Assets group, team members enjoy access to BNP Paribas Asset Management’s dedicated Sustainability Centre, Quantitative Research Group, Macro Research team, and the wider BNP Paribas network.   

[1] GPs tap co-investments as debt capital dries up and fundraising lags, Pitchbook, 30 March 2023  
[2,4,5] BNP Paribas Asset Management, as of 30 September 2024
[3] ESG: Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management‘s proprietary methodology which integrates all three aspects of E, S & G.

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Important information

This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited with its registered office at Suite 1701, 17/F, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong. This material has not been reviewed by the Hong Kong Securities and Futures Commission. It is produced for information purposes only and does not constitute:

  1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
  2. investment advice.

Investors considering subscribing for the financial instruments should read the most recent prospectus, offering document or other information for further details including the risk factors available from your local BNPP AM correspondents, if any, or from the entities marketing the Financial Instrument(s). Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the funds in order to make an independent determination of the suitability of the consequences of an investment. Investments involve risks. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance.

Some of the services listed on this Website may not be available for offer to retail investors.

Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.

Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.

This is not an exhaustive list of risks.  For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.