Altaroc, a Franco-Swiss private equity company, in September 2024, marking an important step in its mission to democratize access to private equity. Thibault Delbarge, Altaroc’s head of Belgium, the Netherlands and Luxembourg, explained that the company’s decision to expand its geographic footprint was driven by growing demand for more accessible private equity options and higher quality, particularly among high net worth individuals (HNWIs) and smaller investors who have historically faced high barriers to entry.
Expansion au Benelux
Mr Delbarge highlighted that the Benelux region has a high concentration of high net worth individuals, entrepreneurs and wealth managers, all of whom understand the value of private equity, but who have limited access to tailored offerings and institutional quality. He noted that private banks and financial intermediaries in the region have struggled to meet this demand, creating an opportunity for Altaroc to step in and fill this gap.
Building on Altaroc’s success in France, where the company raised more than €1 billion in three years by offering personalized private equity solutions, Delbarge explained that there was now an opportunity clear to reproduce this model in the Benelux region. He noted that the company had already laid the foundations for this expansion by hiring him, a professional with extensive experience in asset management and strong local relationships. Mr. Delbarge highlighted that Altaroc intends to leverage its expertise to present its solutions to private banks, family offices and wealth managers in the region.
Altaroc’s expansion into the Benelux reflects a strategic initiative aimed at exploiting a market with high potential and unmet needs.
Thibault Delbarge, head Benelux, Altaroc
Delbarge said the company’s expansion is part of its broader mission to make private equity more accessible to individual investors and high-net-worth individuals. He added that Altaroc’s platform, which offers simplified integration, robust reporting and a focus on environmental, social and governance transparency, is well positioned to meet the needs of the Benelux market.
Access to private equity
“Historically, private equity has been largely inaccessible to retail investors due to high barriers to entry, such as minimum investments of $25 million or more for top-tier funds,” Mr. Delbarge noted. Altaroc aims to break down these barriers by providing small investors with access to private equity funds with more manageable entry points. He cited a report from Pitchbook and the MSCI World Index, which highlights that private equity has historically outperformed public markets, with average net returns of 13.4% over the past 20 years, compared to only 7.9% for public markets. Top quartile private equity funds even achieved net returns close to 22%. By lowering investment thresholds, Altaroc allows a greater number of investors to benefit from these higher returns.
There is a lack of quality private equity offerings for small investors, particularly in regions like France and the Benelux.
Thibault Delbarge, head Benelux, Altaroc
In addition to higher returns, Delbarge points out that private equity allows investors to support private companies, which are vital to the global economy. Referring to data from S&P Capital IQ, he noted that private companies account for 94% of global companies with revenues exceeding $100 million. “Private equity investments allow investors to participate in the real economy by supporting these companies, encouraging growth and innovation,” noted Mr. Delbarge.
Fund selection
To achieve superior returns, Mr. Delbarge explains that Altaroc follows a disciplined approach to selecting private equity funds, focusing on those with strong historical performance and solid organizational foundations. The company targets funds with at least €1 billion in assets under management to reduce the risks associated with smaller funds, which can rely heavily on a few key individuals. Altaroc also favors funds that have a proven track record for at least 20 years, whose team is stable and whose governance practices are solid. Additionally, the company seeks funds with industry expertise and operational capabilities, particularly in areas such as software and healthcare, which are considered to have strong growth potential.
Altaroc’s approach focuses on funds in the top performance quartile and targeting returns above the industry average. The firm also emphasizes funds with in-house operational teams, which can provide direct support to portfolio companies.
Development capital and company buyouts
Mr. Delbarge points out that Altaroc offers two main types of private equity funds: growth equity funds and buyout funds.
Growth capital funds focus on well-established companies with proven business models and customer bases. These funds provide capital to support expansion, product development or market entry. With a moderate risk profile and an investment horizon of three to seven years, these funds are suitable for investors seeking growth with controlled risk exposure.
Buyout funds, on the other hand, target well-established companies and often acquire majority or full stakes. The goal is to optimize performance and drive sustainable growth through operational improvements. Buyout funds generally carry less risk than venture capital or turnaround funds because they focus on stable, proven businesses.
Raise investor awareness
One of the main challenges Altaroc faces in expanding its reach is educating investors who are unfamiliar with private equity. To address this, the company has developed a comprehensive training program for its partners, including wealth managers and institutional investors, to help them effectively introduce private equity to their clients. This program includes basic and advanced modules, allowing partners to gain fundamental knowledge and better understand Altaroc’s unique offerings.
Altaroc meets the needs of investors who are unfamiliar with private equity by focusing on education, simplification and customization for their partners and clients.
Thibault Delbarge, head Benelux, Altaroc
Altaroc also simplifies the complex nature of private equity with client-friendly materials, including presentations, videos and interactive portals, designed to demystify the asset class, Delbarge said. The company offers tailor-made training to meet the diverse needs of its partners, with the aim of ensuring transparent and easily accessible information.
The emphasis on B2B and the Luxembourg strategy
“We focus exclusively on a business-to-business model,” comments Mr. Delbarge, emphasizing the importance of partnering with wealth managers and institutional investors who can then engage directly with their clients. According to him, this strategy allows Altaroc to leverage its strengths by providing transparent and user-friendly private equity solutions, while avoiding the complexities associated with a business-to-customer model.
By 2025, Altaroc plans to strengthen its presence in Luxembourg by raising awareness of private equity as an asset class. “Our first goal is to establish a solid understanding of private equity as an asset class and position Altaroc as a trusted partner in the region,” concludes Mr. Delbarge. “We aim to achieve this goal by raising awareness of our offerings and actively collaborating with our distribution partners to expand access to private equity solutions.”
This article was originally written in English, translated and edited for the Paperjam website in French.
