Pitchbook introduces their research series: Country Snapshots in which they provide an overview of macroeconomic and microeconomic trends in various regions spanning both private and public markets. Here is what Pitchbook highlighted for Q2 in France:
Contrary to VC, PE deal value in France “came in above Q2 2022 levels and continued to increase QoQ in Q2.”
In Q2 2023, the top deal was “the buyout of database management startup DATA4.”
Exit value in H1 2023 was stronger “on a quarterly basis than it has been since Q2 2022.”
Pitchbook further revealed that out of the top five exits in the region, “all were buyouts, with more prevalence of the strategy in the region compared to peers, such as the UK.”
As noted in Pitchbook’s European PE Breakdown Report, the picture was notably strong “when it came to fundraising in H1 2023, with capital raised in H1 already exceeding 2022 levels.”
Over the last three years, “the same two LPs that have made the most VC commitments in France European Investment Fund and Bpifrance had also made the most commitments to PE funds in France.”
Notably, Ardian had “the third highest number of commitments.”
This is similar on a GP basis, “where Bpifrance made the highest number of PE investments in the region at 360.”
Overall, Pitchbook would “expect fundraising in Europe to remain well placed through 2023 given the strong run rate seen in H1.”
During Q2 2023, the French government had “announced tax credits to encourage investments into renewable/low-carbon technologies, the impact of which is estimated to generate [substantial] private investments.”
In a theme of energy transition, in Q2, the French government also announced “a new mining of critical metals.”
The fund will “comprise both private and public capital,
including a planned for 2024 spanning 10 to 15 projects in the range of is likely to be the first of many initiatives in the region, where more capital will be needed to support the supply chain security of critical materials going forward.”
In line with Europe as a whole, macroeconomics continues “to take centre stage in French financial markets as the industry awaits an easing of interest rates and inflation.”
France VC dealmaking activity “continued to fall from Q2 2022 levels, with deal value also decreasing quarter-on-quarter (QoQ) in Q2 2023.”
Over the last three years, the European Investment Fund has “made the highest count of LP commitments to VC funds in France.”
In the same period, from a GP standpoint, government-owned Bpifrance has “made the highest number of VC investments at 607, well above other top allocators in the region.”
