French LPs drive 30% fundraising surge

Domestic LPs demonstrated a strong increase in appetite for French private equity in H1, with commitments climbing to €5.4bn from €3.2bn a year ago, according to a report.

French private equity firms saw a 30 percent rise in fundraising during the first half of 2017, according to research from the French private equity association and Grant Thornton.

French GPs raised €8.1 billion in H1 2017, up from €6.2 billion year-on-year.

Domestic LPs demonstrated a strong increase in appetite for French private equity, with commitments climbing to €5.4 billion from €3.2 billion in H1 2016. The public sector accounted for 23 percent of French commitments, while insurance companies and high-net-worth individuals/family offices represented an additional 20 percent and 19 percent, respectively.

Fundraising grew at almost twice the pace of deployment, with just a 16 percent rise in funds invested to €6.4 billion for the period.

“[The figures come] despite the French presidential and legislative elections during the period, which generally encourage investors to wait and see,” Olivier Millet, chairman of the AFIC, said. “The growth trajectory in recent years of the French private equity sector has not only brought within reach the objective of a two-fold increase in annual fundraising to €20 billion by 2020, but has also positioned it to become Europe’s leading market.”