The situation funds market - France

The turnaround market, particularly pivotal in times of economic difficulty, has undergone a significant evolution due to the COVID-19 pandemic. While bankruptcies were expected to rise, France saw a record drop in business failures, with just 31,000 in 2020. This unusual trend can be explained by the substantial public aid granted to companies during the crisis. The turnaround industry remains relatively niche, characterized by a handful of major players such as H.I.G Europe, Butler Capital Partners, and smaller funds like Alandia, managing 87 million euros. Manufacturing, alongside information/communication and retail, remains predominant, accounting for 65% of turnaround activity between 2016-2021, mainly due to the labor-intensive nature and challenges of adapting to digital transformation.

Expansion-related turnarounds make up 55% of interventions, while internal restructuring and bankruptcies follow with 30% and 10%, respectively. While the industry practices caution, the unexpected drop in business failures paints an atypical picture of the market, with many companies temporarily protected by pandemic-related financial support.

Trends in the French turnaround market

The French turnaround market has experienced a unique phase, particularly influenced by the recent global pandemic. While demand for turnaround funds is traditionally linked to economic slowdowns and rising business bankruptcies, the expected rise in business bankruptcies did not materialize in 2020 and 2021 due to significant government intervention. This unexpected development is the direct result of the substantial financial support provided by the government to companies struggling to overcome the COVID-19 crisis. Indeed, this period saw the lowest number of company bankruptcies in France over the last three decades, indicating an inverse relationship between government support and the need for turnaround interventions. More precisely, the demand for turnaround funds could have been higher without state aid.

The construction, retail, repair and automotive sectors in particular were highlighted as having a significant number of businesses suitable for takeover, indicating a latent demand in these areas. However, the saturation of business difficulties did not translate into business failures due to the rescue measures taken by the government during the pandemic. On the other hand, this scenario raises questions about the potential future demand for turnaround funds, as it is reasonable to assume that once government aid is withdrawn, there could be an influx of distressed companies into the market. The market has largely been shaped by the unusual circumstances of the pandemic, and with over 600,000 bankruptcies between 2010 and August 2021, there could be a latent pool of companies with remediable difficulties waiting to be addressed by turnaround funds.

Overall, the market temperature has been considerably cooled by the French government's initiatives, but the post-pandemic phase could well see a resurgence of activity in the turnaround sector as government support programs are scaled back

Key players in the French turnaround fund landscape

The French turnaround fund market, while still a niche compared to more traditional investment sectors, includes several notable players who have had a profound impact on the economic landscape. These entities have carved out specialized niches and demonstrated their prowess in rejuvenating ailing companies. As the text explains, these funds are not only crucial players in a company's recovery, but also emblems of resilience and strategic foresight.

Here are a few players that have attracted attention in the turnaround market:

• Impala is a French turnaround fund that has forged a formidable reputation by intervening in scenarios where companies are facing difficult tides. Its strategic interventions aim not only to turn around the financial situation, but also to institute operational and managerial reforms that pave the way for long-term growth and stability.
• Butler Partners Recognized in the field of turnaround management, Butler Capital Partners brings a wealth of expertise and resources to the table. By focusing on medium to large-sized French companies, Butler Capital Partners demonstrates its commitment to helping domestic businesses and strengthening the country's economic robustness. They specialize in transforming companies suffering from internal and external problems, applying innovative solutions to generate sustainable success.
• Arcole Industries marks its territory as a turnaround fund that focuses on companies facing major challenges. Its approach is characterized by a hands-on strategy, opening up a period of restructuring that aims to breathe new life into the very framework of the companies it chooses to support.
• FCDE (Fonds de Consolidation et de Développement des Entreprises) FCDE invests in small and medium-sized businesses that are on the brink of collapse, but have the potential for takeover and growth. They play an essential role in strengthening niches or emerging market segments, thus contributing to the diversification and dynamism of the French economic scene.
• Alandia Although a smaller player, Alandia's involvement in turnaround financing is underlined by the depth of its commitment. Targeted companies often become case studies of spectacular transformations, underlining Alandia's ability to effect change and trigger a remarkable turnaround.
• Aryes specializes in assisting B2B companies, particularly those in the industrial or service sectors. Target selection underlines a preference for entities that contribute to the backbone of the economy, articulating their belief in consolidating fundamental economic pillars through turnaround strategies.

Informations

• Nombre de pages : 30 pages
• Format : Version digitale et PDF
• Dernière mise à jour : 19/02/2024

Sommaire et extraits

Liste des graphiques

• Nombre de cas de suppressions ou de créations d'emplois (supérieures à 100) lors des restructurations d'entreprises
• Nombre d'opérations de retournement en Europe
• Nombre de défaillances selon la taille des entreprises
• Cumul sur 12 mois des défaillances d'entreprises
• Répartition des capitaux levés selon les différents types de capital-investissement
• Fonctionnement d'un LBO : le fond rembourse la dette empruntée grâce aux flux financiers de l'entreprise
• Nombre de LBO annoncés sur des entreprises françaises
• Montants levés
• Répartition des procédures de sauvegarde selon le nombre d'employés
• Evolution du nombre de procédures collectives de sauvegarde
• Evolution du nombre de procédures collectives de redressements judiciaires
• Evolution du nombre de procédures collectives de liquidations judiciaires
• Evolution du nombre d'emplois menacés par procédure collective
• Evolution de la répartition de procédures de redressement judiciaire par tranches d'effectifs
• Taux de liquidation des sociétés bénéficiant d'un plan de continuation souscrit en 2012
• Part des entreprises ayant une forte intensité digitale, par secteur
• Part moyenne des interactions avec les clients qui sont digitales
• Vous attendez-vous à ce que la directive européenne "restructuration et insolvabilité" ait des conséquences significatives sur le secteur du retournement ?
• Nombre de cas de retournement par secteur d'activité
• Répartition des opérations de retournement par type
• Cumul sur une année du nombre de faillites d'entreprises
• Chute des ouvertures de liquidations judiciaires par secteur d'activité
• Evolution en volume et en valeur des PGE accordés
• Répartition en volume et en valeur des PGE accordés, par type d'entreprise
• Nombre de cas de suppressions d'emplois (supérieures à 100) lors des restructurations d'entreprises
• Montant des fonds sous gestion de quelques fonds de retournement
• Nombre de cas de créations d'emplois (supérieures à 100) lors des restructurations d'entreprises