French Private Equity Activity in H1 2024 (France Invest)

Summary

• A total of €14.7 billion was invested across 1,463 companies and infrastructure projects in France during the first half of 2024.p.1
• Capital fundraising reached €13.3 billion from subscribers across private equity and infrastructure funds.p.1
• Exits remained sluggish with 605 divestment transactions carried out over the half-year period.p.1
• Investments in France accounted for 84% of deployed capital, well above the 69% half-year average recorded since 2018.p.1
• The industrial sector was the most active non-infrastructure segment, capturing nearly 30% of investments with €2.9 billion deployed into 336 companies.p.1
• In the infrastructure segment, renewable energy accounted for 50% of invested capital and 66% of financed projects.p.1

Key insights

1. 1. Overall private equity and infrastructure investment and fundraising activity stabilized at levels comparable to the first half of 2023.p.1
2. 2. Follow-on reinvestments in portfolio companies and secondary transactions dominated non-infrastructure activity as initial equity openings fell from 35% to 29%.p.1
3. 3. Domestic deployment strengthened significantly, with French targets attracting 84% of capital compared to a historical half-year average of 69% since 2018.p.1
4. 4. Transactions requiring equity injections exceeding €50 million stabilized following the financing-related slowdown in 2022.p.1
5. 5. French infrastructure managers maintained strong global activity, with foreign projects representing 71% of invested amounts and 60% of financed projects.p.1
6. 6. Non-infrastructure fundraising was supported by renewed commitments from funds of funds and insurance companies, while venture and growth fundraising remained subdued.p.2
7. 7. Divestment activity remained sluggish due to ongoing market caution, with recovery slower than anticipated.p.2