On the ground at #IPEMParis

On the ground at #IPEMParis with SEC Newgate, here are some key takeaways from this morning’s sessions:

Geopolitics reshaping the role of private capital

Amid the de-globalisation debate, sovereignty is becoming the new emerging lens for investment. Governments are pushing public-private partnerships, with home-grown entrepreneurs positioned as strategic assets.

Advocating a Europe-first narrative

Investors remain bullish on Europe, but capital flows are challenged by fragmentation across pension systems and cross-border regulation gaps, particularly on themes like AI and the energy transition. 

Firms are urging European LPs (particularly family offices) to modernise their investment mindsets by shifting from traditional allocations (art, real estate or even US tech) toward catalysing the next generation of tech innovators on the continent.

Fundraising & allocation trends tilt toward breadth over depth 

We may see greater convergence between public and private markets, especially as retail capital seeks higher returns. For some firms, this will be a volume play which may eventually impact investment decision, whilst others stick to their existing playbook. 

Looking at institutional investors, LPs are now casting wider nets and diversifying their GP relationships by allocating more to private markets, albeit via smaller ticket sizes. This creates a timely opportunity for niche and emerging managers to capture a greater slice of LP portfolios. 

Sovereign wealth funds, set to be the source of a significant amount of private capital raised in the next few years, currently favour “brand” and “scale” for their allocation decisions. Mid-market firms must make a more vocal case for deep expertise and contextualising the dispersion of returns.

Stay tuned for more insights or get in touch to discuss how we can support your firm’s positioning across these themes: privatemarkets@secnewgate.co.uk