French Unlisted Market Activity: Private Equity and Infrastructure in 2021 (France Invest)

Summary

• French private equity and infrastructure fund managers raised a total of €41.8 billion in 2021, up +78% compared to 2020 and +36% compared to 2019.p.7
• A total of €36.0 billion was invested across 2,495 companies and infrastructure projects in 2021, representing an increase of +56% compared to 2020.p.9
• Private equity funds raised €24.5 billion in 2021, driven by individual investors and family offices who contributed €4.3 billion (+78% vs. 2020).p.11
• Infrastructure funds raised €17.2 billion in 2021 compared to €5.0 billion in 2020, with over 75% of capital raised from international investors.p.41
• Business Angels invested €69 million in 2021, including €20 million from independent Business Angels.p.35

Key insights

1. Total capital raised by French private equity and infrastructure players reached a record €41.8 billion in 2021, up +78% vs. 2020.p.7
2. Private equity fundraising of €24.5 billion was achieved without any single fund closing above €1 billion, driven instead by funds between €100 million and €500 million.p.11
3. Units-linked life insurance (assurance-vie en unité de compte) was measured for the first time in the study and accounted for €515 million of private equity fundraising.p.16
4. Growth capital (capital-développement) fundraising surpassed buyout/transmission capital for the first time in 4 years, reaching €10,522 million.p.18
5. French companies accounted for 75% of private equity backed companies and 66% of total amounts invested in 2021.p.25
6. Pension funds and insurance companies were the largest subscribers to French infrastructure funds in 2021, providing €6,062 million and €4,490 million respectively.p.44
7. Brownfield infrastructure investments surged by +90% in 2021 to reach €7,228 million across 55 projects.p.51