01
Examine the opportunity
Assess the business, financial structure and assumptions underpinning the investment case.
ANNEAU–GESTIONS · Investment approach
Private Equity
Within alternatives: long-term ownership with distinct commitments and constraints.
ExplorePurpose before portfolio
A longer horizon demands clarity.
Private equity involves ownership interests in businesses that are not publicly traded. An assessment needs to connect the business opportunity with the investment structure, governance arrangements and possible routes to exit.
Commitments can extend over many years. The timing of capital calls and distributions, valuation uncertainty and limited exit options should be considered before a commitment is made.
A disciplined assessment
Evidence before allocation.
02
Understand the commitment
Consider fees, funding obligations, governance rights and the terms of the investment.
03
Plan for uncertainty
Allow for delays, further capital needs and outcomes that differ from the initial exit assumptions.
The investment process
Before investment.
Through ownership. Towards exit.
The original ANNEAU framework connects investment assessment, post-acquisition value creation and exit preparation. Each phase informs the others.
Investment assessment and completion
Originate and screen opportunities; undertake preliminary due diligence and investment analysis; review valuation and deal structure; complete in-depth diligence; obtain the relevant investment and risk decisions; and complete the transaction.
Considerations Financial, legal, commercial and reputational diligence; independent valuation; strategic and contingency plans; capital structure; funding; regulatory approvals and transaction documentation.
Post-acquisition value creation
Develop the initial strategic plan with management, define measurable priorities and monitor progress. Consider governance representation, business development, operating improvements and the resolution of identified issues.
Considerations The source uses a 100-day planning framework. Governance rights, director appointments, on-the-ground support, partnerships and environmental, social and governance initiatives depend on the actual investment arrangements.
Exit preparation and realisation
Establish an initial exit rationale during underwriting and revisit it during ownership. Assess readiness, continue the value-creation programme, prepare management and evaluate feasible exit routes.
Considerations Trade sale; secondary buyout; a public-market route where appropriate; buyback or other permitted transaction. Timing, price and availability are uncertain; impairment, restructuring or total loss remain possible.
Exit assumptions inform the initial investment decision and are reviewed throughout ownership.
Value creation must be tested, not assumed.
The investment case examines the market opportunity, competitive position, growth assumptions, cash generation, financing structure and potential realisation value. Leverage and exit multiples require particular scrutiny: they can amplify losses or materially alter the outcome.
The original methodology emphasises alignment between shareholders, the board and management. For GESTIONS, direct-investment responsibilities must be distinguished from an allocation to an external private-equity fund, where the fund manager exercises investment and portfolio-company powers under its own governing documents.
The specific decision-making bodies, approval thresholds, monitoring responsibilities and reporting arrangements must be agreed for the relevant structure. This illustration does not assert that ANNEAU’s named committees or operating resources are automatically those of GESTIONS.
Keep the risks in view
Opportunity is not certainty.
Private equity can involve substantial or total loss, long holding periods and limited ability to sell. Valuations may be infrequent and rely on estimates.
Explore further
Keep the whole portfolio in view.
This describes an investment framework, not a personalised recommendation or a commitment to offer every asset class. Availability depends on the responsible entity’s permissions and the agreed mandate. Investments involve risk and capital is not guaranteed.