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.
Strategy features
Extensive sourcing
The strategy benefits from BNP Paribas Group’s long-standing relationships with numerous GPs, as well as BNP Paribas Asset Management’s Fund Platform. This is complemented by proactive origination efforts and market intelligence from the BNP Paribas network, M&A advisors and existing portfolio companies.
Portfolio diversification
Investments are diversified across sectors, countries and company sizes. The objective is to build a portfolio of 40 to 50 investments.
Experienced team
A seasoned investment team of 15 professionals with diverse and complementary skills and 23 years of experience on average.2
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.
Investment risks
Private assets are investment opportunities that are unavailable through public markets such as stock exchanges. They enable investors to directly profit from long-term investment themes and can provide access to specialist sectors or industries, such as infrastructure, real estate, private equity and other alternatives that are difficult to access through traditional means. Therefore, any investment in private assets does require careful consideration, as they tend to have high minimum investment levels and may be complex and illiquid, as well as may be exposed to specific risks, including:
- ILLIQUIDITY OF THE SUB-FUND’S SHARES
- ILLIQUIDITY OF THE SUB-FUND’S INVESTMENTS
- CREDIT QUALITY
- LIQUIDITY RISK
- LONG-DATED NATURE OF MOST INVESTMENTS
- CONCENTRATION
- MARKET RISK
- INTEREST RATES
- FOREIGN EXCHANGE RATES AND HEDGING
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
[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
BNP PARIBAS ASSET MANAGEMENT Singapore Limited, “the investment management company”, is a company incorporated in Singapore with its registered office at 20 Collyer Quay, #01-01 Collyer Quay, Singapore 049319, Company Registration No. 199308471D.
This material is issued and has been prepared by the investment management company. This advertisement has not been reviewed by the Monetary Authority of Singapore. It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time.
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- 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;
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