Charles-Emmanuel Prieur, Managing Partner of UGGC Avocats, spoke on June 10, 2021 at a round table organized by the Lettre des Juristes d’Affaires on the topic of “Growth Equity: transforming growth companies into champions“.
“More than cash, some managers expect expertise and assistance in their sector of intervention. From this point of view, I sometimes see disappointment. Some managers may have had too high expectations. But I believe that the new generation of funds are more specialized. There are sector funds with teams that invest in activities other than simply monitoring their holdings and bring new perspectives to company managers. The counterpart of sector funds is that, by definition, they act on a whole sector. Their portfolio companies therefore have very comparable activities, which can sometimes pose a problem. “says Charles-Emmanuel.
The 7 speakers developed the following topics:
- Definition of Growth: Cap dev and scale up: characteristics, horizons and sectors.
- The choice of growth by companies: why this option among the more traditional ones: traditional PE – LBO / Family offices / Pension funds: what are the decisive criteria? Which partnership with the fund for which business project? The problem of critical size?
- Structuring the operation: dilution of founders, management packages (cash out): how to structure this partnership?
- Company projects: becoming an international player, build-up and structuring of the company to consolidate it, make it more robust to ensure the chances of success of hyper growth.
- Governance :
- Multitudes of shareholders: funds / business angels and dedicated funds new entrants: change of dynamics – What balance in the rules of governance? Delicate management of the captable – prevention of possible litigations.
- Fund-company relationships: why or why not prefer a sector fund?
- Hands on or off funds – what soft skills?
- Exit: what horizons / what options? Advantages and disadvantages ;
Click on this link to discover the analysis of the speakers.