Private equity is still a mysterious sector for many professionals of the financial sector. It’s difficult to measure, hard to trade (fairly illiquid) and comes in the form of funds that last for many years. While these are standard features capable of scaring off many investors, private equity and venture capital accumulate an additional challenge: adding value. In private equity, such as with liquid transactions, adding value may be affected by speculation (buying low and selling high rules) but its greatest share of success actually comes from increasing the value of the assets.

The role of adding value to a given business is the biggest challenge any professional in the industry faces. Merge, close, invest, hire, turnaround and expand are some of the actions one needs to take to succeed in private equity before the sacred “exit” at a positive multiple. To understand the challenges of adding value to portfolio companies, Luxembourg will welcome Perella Weinberg Partners, BIP Investment Partners, Deutsche Beteiligungs AG, Portobello Capital, LBO France and Centerra Partners to a panel of mid-market private equity fund managers. This session will take place in the context of LPEA Insights, the second edition of the flagship event of the Luxembourg Private Equity & Venture Capital Association (LPEA).

The focus in adding value is strongly related to the motto of the conference: “Building the real economy”. Only by improving existing businesses, the sector strives in contributing positively to its surrounding environment, impacting a given region and creating more and better jobs. Examples with a Luxembourg flavour will be on stage: Burger King’s expansion in Luxembourg, Job Today’s international success and Lux Aviation’s global leadership in the private jet business.

It is this strong link with the real economy, the perception of greater control on the investments and the attractive return rates that continue to draw an increasing number of institutional and non-institutional investors to private equity. On top of traditional investors, we now see more family offices and private banking gaining exposure to the asset class. The panellists from Brederode Group, Siemens AG, CA Indosuez Wealth and Swancap will analyse the motivations behind investing in private equity these days.

Many investors are also embracing the sector due to its capacity to comply with their Environmental, Social and Governance (ESG) policies. With an increasing number of investors defining ESG criteria, impact investing funds come as a solution to such requirements, leading some fund managers to go even further and join philanthropic initiatives such as those promoted by Alexandre Mars’ Epic Foundation which will close the event.

Whether you are new or experienced in the private equity sector, the LPEA Insights will provide the ground to acquire new perspectives and meet with the fast-growing private equity community of Luxembourg.

For more information about the LPEA Insights conference visit www.lpeainsights.lu.