André and Pauline noted that private equity has moved past its 2021 peak and has now entered a period of reassessment. With distributions running well below historical levels and holding periods extending beyond historical norms, they believe that returns must now be earned through operational value creation and earnings growth rather than multiple expansion. In this environment, manager selection matters more than ever, with a premium on teams that can demonstrate genuine, repeatable value creation capabilities across market cycles.

On the topic of GP-led transactions and secondaries, André and Pauline highlighted how the secondary market has matured into a legitimate and sophisticated liquidity management tool. GP-led secondaries now account for roughly half of all secondary deal flow, more than double their share a decade ago, and the broader secondary market is on track for another record year. Careful due diligence on governance, valuation methodology and the alignment of interests is central to navigating this segment successfully.

André and Pauline addressed the “DPI versus IRR” debate, confirming that distributed capital has become the new benchmark for many institutional investors after years of limited exits. LGT Capital Partners monitors the alignment of interests throughout the life of each fund — from initial due diligence on GP commitment levels and carried interest structures to active participation in Limited Partner Advisory Committees.

Read the interview in Les Echos Capital Finance here (in French and behind paywall).