Target Information

Parquest Capital has acquired a minority stake in Eres, a leading independent player in employee savings, retirement savings, and employee shareholding. Founded in 2005 by four managing partners—Jérôme Dedeyan, Nicolas Vachon, Hervé Righenzi de Villers, and Olivier de Fontenay—who retain the majority ownership, Eres has experienced robust, continuous growth. As of June 30, 2016, the company managed assets totaling €1.5 billion and has established itself as a dominant distributor of employee savings products (such as PEE, PEI, PERCO, and PERCOI) and retirement solutions (including PERP, corporate PERP, and Article 83) through Independent Wealth Management Advisory networks, insurance brokers, and chartered accountants. Over 1,700 firms have partnered with Eres since its inception.

Eres also supports its large listed and unlisted clients with their employee shareholding and retirement savings initiatives, both in France and internationally. This includes creating bespoke dedicated funds with a fully open architecture and implementing asset/liability management solutions for pension schemes. Eres boasts nearly 20,000 collective contracts, over 3,000 individual contracts, and more than 120,000 beneficiaries from small enterprises to large publicly traded companies.

Industry Overview in France

The employee savings and retirement industry in France is characterized by diverse investment options and significant growth potential. French legislation supports various savings schemes that incentivize both employers and employees to engage in savings programs. The popularity of employee savings plans has been bolstered by government initiatives aimed at ensuring financial security and encouraging long-term savings among the working population.

Additionally, the French market has witnessed a surge in demand for customized retirement solutions due to changing demographics and longer life expectancies. Employers are increasingly interested in providing comprehensive savings solutions that not only enhance employee loyalty but also attract top talent. As such, the role of companies like Eres is becoming more crucial in facilitating these programs.

Further, technology is playing an essential role in reshaping the landscape of employee savings and retirement solutions in France. The rise of digital platforms has made it easier for companies and employees to manage their savings and allows for greater accessibility to information regarding various savings and investment options.

Overall, the industry's strong fundamentals and responsiveness to regulatory and market changes position it for continued growth. Firms that can innovate and adapt to the evolving needs of both companies and employees will likely remain competitive in this expanding market.

Rationale Behind the Deal

This investment by Parquest Capital is aligned with Eres' ambitious development plan. The capital infusion is aimed at accelerating Eres' growth trajectory and especially expanding its retirement insurance activities. The partnership with Parquest is set against a backdrop of strong market demand for innovative employee savings products and solutions.

By partnering with Eres, Parquest seeks to leverage the firm's established market presence and expertise in the retirement savings sector, thereby creating opportunities for growth and enhanced service offerings to customers.

Investor Information

Parquest Capital is an established investment firm known for its strategic investments across various sectors. Since its separation from the ING Group in April 2014, Parquest has focused on finding promising companies capable of sustaining long-term growth. The firm's approach emphasizes partnership, operational improvement, and sector expertise, allowing it to effectively foster the success of its portfolio companies in their respective markets.

With a strong track record of investing in high-potential businesses, Parquest brings valuable insights and resources to Eres. Its support will not only assist Eres in expanding its market reach but also in enhancing operational efficiencies that drive sustainable profitability.

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The investment by Parquest Capital in Eres represents a sound strategic move given the favorable industry dynamics and Eres' established market position. The strong growth that Eres has demonstrated, combined with an expanding market for employee savings and retirement solutions, suggests that this partnership could lead to significant advancement for both parties.

However, it is crucial to consider potential challenges, including heightened competition and the necessity for continuous innovation to meet the evolving needs of clients. Parquest's expertise in operational improvement and strategic development can help mitigate these risks effectively.

Furthermore, this investment not only secures financial backing but also positions Eres favorably to capitalize on emerging market opportunities. The partnership could facilitate enhanced service offerings and the development of innovative products tailored to the demographic shifts within the workforce.

In conclusion, the deal is poised to be a rewarding investment for Parquest Capital, provided that Eres maintains its growth momentum and continues to adapt to market demands. Overall, this transaction appears to be a positive step for both entities in achieving their long-term objectives.

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