Transparency, tailor-made solutions and a shift towards new markets: the changing face of investor engagement

The last decade has been momentous for Ardian, spurring profound changes in the way we consider investor relations. This stems from what I would call a dual expansion: Firstly, investor commitments have increased roughly five-fold, from a portfolio of $30 billion under management when the company was founded, to $164 billion as of December 2023. 

Secondly, our clients have become more geographically diverse. Though Europe remains our largest overall client, other regions have grown considerably. The Americas, Asia and the Middle East combined now account for most of the new capital raised. On the fundraising side, we are now speaking locally, proactively, and directly to these large pools of capital.

Uncompromising transparency, trustworthy projections

Besides this added physical proximity, we strive to bring high granularity reporting and several levels of feedback on portfolio companies, making it easier for investors to identify the risks to a particular business model, or assess a firm’s leverage.

Beyond transparency, Ardian’s ability to offer investors trustworthy projections is a particular point of pride for me.

This allows us to map out accurate multi-year projections for portfolio companies and entire funds. Critically for our investors, we can forecast portfolio cashouts, new commitments, payouts, and more. All of which makes Ardian quite unique, according to our clients.

Technology and human resources are integral to investor relations 

This tailor-made approach, with its high level of personalization, is an important aspect in the evolution of our engagement with investors and would be impossible without the help of innovative technology. We have created TrustView Ardian, an online portal and investment dashboard for our clients. A powerful tool that our investors can use to manage their money, the TrustView platform also represents, in my view, the perfect illustration of a successful collaboration by Ardian’s IT and Investor Relations teams. Meanwhile, we are monitoring the advent of artificial intelligence, which is opening up new possibilities and prospects for investor relations.

But technology is just one facet of successful investor relations. To ensure outstanding services and reporting for our clients, we must strike an optimal balance between technological tools and human resources. With a global presence through 19 offices – we opened our newest additions in Abu Dhabi and Montréal in 2023 and very soon we will inaugurate Amsterdam and Stockholm.

To make sure that the hallmarks of Ardian, from reporting and communication to quality, are maintained throughout, we have set up an investor relations management committee. It acts as a forum for regular meetings, updates, and exchanges on best practices and opportunities at the group’s senior levels worldwide, including investment, sales, and support teams. In addition, I set aside time to visit our offices and engage with the teams. These visits are an ideal opportunity to ask essential questions: What are our current priorities? How do we guarantee the satisfaction of our investors? How effective is communication? I find that maintaining open lines of communication is vital, underscoring the pivotal role of the human touch in fostering successful investor relations.

Private wealth: a decisive shift in the profile of our investors

Another fundamental change within investor relations might also be the most important one: the shift towards private wealth. This trend started some years back, but I anticipate an accelerated increase in the future. While institutional clients like pension funds and insurance groups will continue to be key investors, the emerging trend suggests a growing market share from private banks, family offices, and ultra-high net worth individuals for institutions such as Ardian. 

This shift is underpinning demand for innovative and more retail-oriented structures and solutions. We have successfully launched our first private wealth dedicated evergreen fund and plan to launch similar initiatives in the coming months. This requires a heightened focus on customization and flexibility across various investment levels, whether in private equity, real assets, or credit. Ardian has responded to this demand with initiatives like Ardian Customized Solutions and Ardian Private Wealth Solutions, which tailor investments to the needs of our clients, enabling them to scale up or down – a crucial feature for individual investors. 

As the landscape evolves amid a shift towards private wealth, a burgeoning market is unfolding for private equity investment.

The combination of our current products with new initiatives that we either develop or acquire sets investor relations on a favorable trajectory. Our positive momentum is reflected in the fact that 2023 has been our second-best year in fundraising historically; a significant success in challenging circumstances, signaling promising prospects for the years ahead.