Private equity investment in France has shown robust growth in recent years. With solid economic fundamentals and business-friendly policies, France has emerged as an attractive destination for PE capital. Some key factors supporting the French PE market are its large economy, skilled workforce, developed infrastructure and proximity to other major European markets. According to Invest Europe data, in 2020, €17.1 billion was invested in French PE deals, making it the third largest market in Europe. Let’s take a look at some of the top PE firms actively investing in French companies.
Major global PE investors in French market – Blackstone, CVC, KKR, etc
Many of the world’s leading private equity firms have significant exposure to France. US giants like Blackstone, KKR, Carlyle and TPG have offices in Paris and have acquired numerous French companies across sectors like industrials, consumer products and telecoms. Other prominent global names include CVC Capital Partners, Permira, BC Partners, PAI Partners etc. They are attracted by assets like French industrials with global operations and strong brands. These PE firms leverage their international network and operating expertise to accelerate growth of their French portfolio companies.
Leading France-based PE firms – Eurazeo, Wendel, Ardian
There are also a number of France-based PE firms with strong capabilities and track record. Paris-headquartered Eurazeo is one of Europe’s leading listed investment firms with over €18 billion in diversified assets. It focuses on investments in areas like healthcare, hospitality, consumer brands and technology. Wendel is another listed PE firm based in Paris managing over €7 billion in assets. It specializes in long-term equity investments in industrial, service and technology companies. Ardian is a private PE firm with $90 billion in managed assets, investing in mid-cap buyouts, infrastructure, private debt and real estate across Europe.
PE investments beyond Paris – Major regional markets
While Paris attracts a major share of French PE investments, other regions have also emerged as significant markets. Some of the major regional PE hubs in France include Lyon, Lille, Marseille, Toulouse and Bordeaux. These cities have vibrant startup ecosystems and host the headquarters of many mid-sized companies that attract PE interest. Many government and EU initiatives like the ‘Action Heart of France’ program have been launched to boost private equity activity beyond Paris and fuel economic growth across different parts of France.
Outlook for French PE market – Continued growth expected
The French PE market is expected to continue its strong momentum, underpinned by the country’s fundamentals and its position as a gateway to Europe. Invest Europe predicts that if macroeconomic conditions remain broadly supportive, French PE investment activity could hit new highs over the next 2-3 years. The software, healthcare, consumer goods and green tech sectors are likely to see heightened PE interest going forward. Overall, France seems well-poised to remain among the prime destinations in Europe for international private capital.
France has developed into an attractive private equity market, with leading global and local PE firms making significant investments. Key factors like a skilled workforce, strong infrastructure and access to the broader European markets will continue to draw PE capital. Major players will keep pursuing French targets across sectors like technology, healthcare, industrials and consumer products.