With a whole ecosystem of private players – private-equity firms, venture capitalists, institutional investors, hedge funds, direct lenders and fund managers – scrapping for the riches of the boom in private markets, it can be difficult for firms to get a foothold and expand investment portfolios worldwide. In such a volatile, dynamic sector, adaptable firms that are responsive to new trends in ESG criteria, data, and analytics can get ahead of the rest. The French firm Ardian is one of them.
The private asset market is growing, and its expansion pit mainstream asset managers against private equity groups for a slice of the pie. Private assets are desirable because they allow investors to lock up their capital for several years. This is particularly attractive in the current climate, with global financial instability on the rise due to the war in Ukraine, the fallout from the pandemic and the looming threat of recession.
Firms that have been able to ride the wave and maintain a certain economic resilience are those that have been able to consecrate their position on the world stage. In the private equity sector, Ardian is a firm that has reinforced its global portfolio, investing in pan-European projects with a particular focus on ESG and green energy.
Expanding real estate
Ardian has always understood that building resilience and expanding support networks across its investment portfolio is crucial to reinforcing its global position as a leading investment house. Contrary to a feeling of technological plundering by foreign investment funds in France and other EU countries, global investment by firms like Ardian creates international financial structures that will benefit investors and companies far and wide.
One example is Ardian’s recent announcement of creating a Real Estate Debt activity to manage funds and mandates related to financing pan-European real estate projects. Focusing on senior debt, the project will focus on investments with a strong ESG angle, already a pillar of Ardian’s global investment strategy, to create greener cities with a particular focus on renewable energy sources. “Since 2016, Real Estate at Ardian has grown significantly. Equity investments through two generations of value-added funds have enabled the deployment of more than €3.7 billion of real estate assets in major European capitals, with a balanced risk profile and excellent performance,” according to Stéphanie Bensimon, Head of Real Estate at Ardian.
“With the creation of real estate debt activity, we will be able to support major real estate investors with project financing, especially as leading banks increasingly need alternative lenders like Ardian Real Estate Debt as partners. With a team of recognized experts, excellent market access and the confidence of financial partners, we are well-positioned to offer our clients an attractive risk-return profile and contribute to the goth of the real estate debt market in Europe,” stated Arnaud Chaléac, Head of Ardian Real Asset Debt and Co-Head of Group Finance of Ardian.
Sustainability on the world stage
Ardian’s experienced founder and president, Dominique Senequier, has made a habit of extolling the virtues of sustainable investments as a long-term strategy for the firm. “As a private investment house, we are convinced that the most sustainable companies will have the greatest long-term value to all stakeholders. It is essential,” she said back in 2021. Sustainability is at the heart of Ardian’s investment strategy, an approach that increasingly meets investor demand while benefiting the companies in which Ardian invests and society.
A recent example is Ardian’s launch, via its infrastructure business and partnership with FiveT Hydrogen, the largest clean hydrogen infrastructure program in the world, Hy24. The fund aims to expand globally to bring investors together to fund clean hydrogen infrastructure and invest in projects critical to global decarbonization. Hy24 is targeting €1.5 billion for its first fund, €800 million of which has already been committed by a leading group of industrial and financial investors in the clean hydrogen sector.
Mathias Burghardt, Head of Ardian Infrastructure and Member of Ardian’s Executive Committee, said: “We are proud to have been chosen by some of the world’s leading industrial players and investors to lead this initiative. At a time when the European Union has announced a step up in its climate ambitions and just ahead of COP26, it is a great responsibility to lead such a platform. We were early backers of the renewables market, our platform reaching 7.5GW of heat and renewable capacity today, and it is clear to us that hydrogen is facing a similar trajectory. This collaborative partnership is exactly in line with how Ardian Infrastructure operates. We are confident that Hy24 will be able to play a leading role in accelerating the hydrogen scale-up needed to decarbonize our economies.”
This project further highlights Ardian’s position as a long-term player; such investments aim to create value and set companies on a path of sustainable growth and development. Contrary to certain preconceived ideas, SRI funds are all the more attractive to investors because their performance is comparable to that of other funds. Over three and five years, sustainable investments have outperformed traditional investments and have enabled Ardian to shore up its position as a global investment powerhouse.
