Strategic Private Equity: Why Regional Buyouts and Hospitality Lead the Way

In the evolving landscape of private markets, Turenne Capital stands out as a pillar of the French investment scene. With 25 years of experience, €1.8 billion under management, and a unique regional footprint across 7 offices, the group offers individual investors access to institutional-grade strategies.

In a recent episode of the Private Market Square podcast, David Gontard, Head of Development, detailed two high-performing investment vehicles: a multi-sector Evergreen SLP and a specialized Hospitality FPCI.

1. The Power of "Patient Capital": The Evergreen Regional Buyout

Most private equity funds are "closed-ended," meaning capital is locked for a decade. Turenne Capital disrupts this model with its Evergreen SLP (Société Libre de Partenariat).

Why Choose an Evergreen Structure?

• Permanent Liquidity & Subscription: Unlike traditional funds, an Evergreen vehicle is perpetual. Investors can enter at any time, benefiting from a portfolio that is already "in the ground" and generating performance.

• Bypassing the J-Curve: By investing in an existing pool of assets, the traditional "J-Curve" (where early fees outweigh initial gains) is significantly mitigated. David Gontard notes that Turenne’s strategy recently erased this dip in less than a year, achieving exits with IRRs around 30%.

• Supporting Regional SMEs: The fund focuses on Growth Buyouts of French SMEs and mid-caps across diverse sectors (Health, B2B Services, Tech). This "patient capital" approach is highly valued by entrepreneurs looking for long-term partners rather than short-term flippers.

2. Hospitality 3.0: Investing in Tangible French Assets

France remains the world’s top tourist destination, and the hotel industry has shown remarkable resilience post-Covid. Turenne Capital is currently raising its third vintage: Turenne Hôtellerie 3.

A Strategy of "Active Asset Management"

Turenne doesn't just buy hotels; they operate them. This "owner-operator" model is a key differentiator:

• Prime Locations: Focusing on 50 to 200-room hotels in "prime" French cities.

• Value-Add Renovations: Identifying "tired" assets, investing in high-quality renovations, and repositioning them to increase occupancy rates and Average Daily Rates (ADR).

• Yield Management: Utilizing dedicated in-house Revenue Managers to optimize pricing in real-time.

Why Invest in Turenne Capital via Airfund?

For Wealth Managers (CGPs) and private investors, these funds offer a blend of tangible real estate security (Hospitality) and high-growth corporate equity (Regional Buyout).

• Expertise: 25 years of track record.

• Accessibility: Entry tickets starting at €30,000 for the Hospitality fund and €100,000 for the SLP.

• Diversification: Moving away from stock market volatility into the heart of the French real economy.

“Private Equity historically offers 5% less volatility than listed equity markets while delivering superior long-term returns.” – David Gontard.