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Ardian

PRI reporting framework 2017

You are in Direct – Private Equity » Overview

Overview

PE 01. Breakdown of investments by strategy

01.1. Provide a breakdown of your organisation’s internally managed private equity investments by investment strategy.

Investment strategy 

Percentage of your internally managed
private equity holdings (in terms of AUM)

Venture capital

Growth capital

(Leveraged) buy-out

Distressed/Turnaround/Special Situations
Secondaries
Other investment strategy, specify
Other investment strategy, specify

Total

100%

Other investment strategy, specify

          
        

Other investment strategy, specify

          
        

01.2. Additional information. [Optional]


PE 02. Typical level of ownership

02.1. Indicate the level of ownership you typically hold in your private equity investments.

02.2. Additional information. [Optional]

Ardian always seeks to secure an ownership and governance model that favours alignment of interests between investors and portfolio companies. Ardian's direct investments comprise a wide range of funds that cover multiple asset classes attached to varying investment strategies. Shareholding and level of control necessarily differ between activities.

In the Mid Cap Buyout and Expansion activities, teams target either active controlling or non-controlling stakes depending on the features of the companies. Ardian always secures adequate governance rights allowing investments professionals to participate to all major decisions of the company.

In the Growth activity, management teams and founders usually hold a majority stake;

and in Co-investments deals, which usually involve both industrial and financial shareholders, Ardian has an active role yet no systematic controlling interests.

It is critical for Ardian to seat on the Board of its portfolio companies in order to closely monitor progresses, provide adequate support and efficiently influence management's deployment of the firm's value creation strategy. In its direct activity, Ardian sits on the board of  69 portfolio companies.

 


PE 03. Description of approach to RI

03.1. Provide a brief overview of your organisation’s approach to responsible investment in private equity.

At the heart of Ardian's culture lies a commitment to responsibly create enduring value.

Our role as long term shareholder is to foster growth that is both sustainable and shared by all stakeholders. In practice, Ardian strives to keep up with the highest standards in its investment practices as we are convinced it will improve the company's performance in the long run: both reducing risks and improving management practices of portfolio companies and funds, as well as making Ardian a more responsible shareholder and employer.

Ardian is an active signatory of the PRI since 2009. In line with this commitment, Ardian integrates ESG considerations at all stages of the investment process for all of its investment activities. In addition to this mainstream approach, Ardian applies a negative screening approach and strictly avoids investing in companies that operate in sectors it considers unethical, such as firearms and tobacco.

Ardian strongly believes that alignment of interests is a key lever for long term value creation. It was the first private equity firm in France to call for the redistribution of a portion of buyout capital gains to employees of portfolio companies, and always seeks to extend portfolio companies' profit sharing mechanisms whenever possible.


PE 04. Investment guidelines and RI

04.1. Indicate if your organisation’s investment guidelines for private equity refer to responsible investment.

04.2. Describe how your organisation’s investment guidelines outline your expectations on staff and portfolio companies’ approach towards ESG issues [Optional].

Please refer to SG 01.5


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