Investing in non-listed securities: Strategies and long-term prospects

Investing in non-listed assets is part of a demanding approach to wealth management, combining diversification and potential returns. It involves investing in companies, real estate projects or infrastructures not listed on traditional financial markets.

Supporting the development of companies often in a growth or transformation phase, this asset class offers access to differentiating opportunities. However, it requires a long-term approach, with capital tied up over several years, and a rigorous selection of partners and projects. A good knowledge of non-listed investment funds and a rigorous selection of projects are essential for success in this sector.

Investing in non-listed assets means placing capital in assets that are not traded on stock markets. This mainly involves investments in private equity, private debt, venture capital or unlisted real estate. This financial investment approach enables us to support high-potential companies, while broadening the investment universe beyond traditional asset classes.

Non-listed assets represent a strategic alternative, complementary to listed assets, for investors seeking performance, diversification and impact.

Attractive performance potential

By targeting growing or changing companies, non-listed assets offer the prospect of significant value creation, particularly when they are resold or floated on the stock market.

Diversification uncorrelated with financial markets

These investments do not react to the same cycles as listed assets. They help reduce a portfolio's overall volatility, while strengthening its resilience in times of turbulence.

Support for the real economy and innovation

Non-listed assets enable you to allocate your capital to concrete entrepreneurial projects in promising sectors: energy transition, healthcare, tech, infrastructure... It's also a way of anchoring your investment in a sustainable and useful rationale.

This asset class offers a variety of strategies, with different risk and return profiles.

Private equity

Private Equity consists of acquiring stakes in unlisted companies, in order to finance their growth, transfer or restructuring. This is a long-term strategy, requiring in-depth analysis of business models, governance and exit prospects.

Eurazeo, a leading player in private equity in Europe, offers funds accessible to private investors, co-invested alongside our institutional vehicles, as part of a rigorous and responsible management approach.

Venture Capital

Venture Capital targets companies in the seed or start-up phase, often at the cutting edge of innovation. This strategy offers a high potential for value creation, but with a greater risk of capital loss.

Unlisted real estate

Investing in privately-owned real estate projects allows you to benefit from stable returns while gaining exposure to tangible assets. Unlisted real estate can include residential, tertiary, logistics or development projects.

Private bonds

Issued by unlisted companies, these bonds enable them to finance their growth via a debt mechanism. They often offer higher yields than listed securities, in return for lower liquidity and issuer risk.

PEA-PME

This tax-incentive scheme makes it possible to invest in SMEs listed on growth markets or unlisted, while benefiting from an advantageous tax framework. It is fully in line with the logic of supporting the local and entrepreneurial economy.

Like all investments, non-listed securities entail specific risks that need to be accurately measured.

Limited liquidity

Unlisted assets are, by definition, difficult or impossible to trade on secondary markets. Investors must therefore accept a long investment horizon, with no possibility of early exit in most cases.

Risk of capital loss

The lack of visibility or the vagaries of a private company's development may result in partial or total loss of the capital invested.

Operational or governance risk

Performance is highly dependent on the quality of management, strategy and execution. Poor governance can have a significant impact on portfolio value.

Regulatory risk

Changes in regulatory or tax frameworks can affect the performance or liquidity of investments, particularly in fast-changing sectors.

Unlisted investment requires method, discernment and support. Here are the main stages in a structured approach.

Carry out an in-depth analysis

It's essential to evaluate in detail the companies, sectors and funds in which you plan to invest. Transparency, track record, alignment of interests and exit strategy are key criteria.

Diversifying exposure

Diversification of sectors, geographical areas and asset types is recommended to dilute overall risk.

Select recognized partners

Opt for experienced managers with dedicated resources, privileged access to deal flow, and proven operational strength.

Rigorous risk assessment

Each opportunity must be subject to a precise assessment of the risks associated with liquidity, valuation, past performance and allocation strategy.