are suddenly looking at much more closely

Funds would become creators of value, not only for institutional investors, but for the companies and the business world more broadly as a whole An unexpected analysis, of course, since thousand places of the clichés that are accustomed to associate with this sector of activity, but which however reflects a reality. The image of "private equity" funds tends to change to the important role they now play in the economy. In some sectors such as industry, funds may even be responsible for a revival. In others, such as Corsican maritime transport, for example, they may become the only serious alternative to the resumption of a company in serious financial trouble, the image of what has made Walter Butler de la SNCM. Therefore, is it possible that far from being "nasty predators" that thought, funds may be the origin of a new model management to put the business on the road to competitiveness

Under their auspices, the performance of the companies they have become shareholders have reconnected with growth and profitability, in the image of Rexel. Indeed, less than a year after its acquisition by a "private equity" Fund group PPR, the world leader in the distribution of computer equipment announces strong growth results, described as "historic" by its President. Is it really a coincidence Under the impetus of funds, trademarks, thought asleep, wake, as the manufacturer of women's lingerie Barbara. While the company out of three loss-making years, where its turnover is eroded by 10 to 15 per year, Natexis Private Equity takes the majority of its capital and invests significantly in its Treasury, giving it the means to continue its international development. Since then, the mark appears in its communication optimism "winner", certainly developer of a new spirit of entrepreneurship. A coincidence Finally, the funds create employment. Indeed, two studies conducted in parallel by the European Association of the investment and risk capital (Evca) and the French Association of investors in capital (Afic), show that between 2000 and 2004, 1 million new jobs created by companies funded by European equity and venture capital. What do think about the relevance of the new managerial approach proposed by investment funds.

Well understand the phenomenon, is foremost whether what is happening very practical when a company goes under LBO ("leverage buy out"). First, it is important to specify that all societies are not covered. The operation is most often a family business or a division of an industrial group, considered by non-strategic, because too remote from its core business. They are then subject to a majority takeover, ideally 100, by an investment fund. Funding for what everyone calls "a deal" will take place with a leverage, i.e. a debt to the banks, the amount may be relatively important. Therefore, the purchaser Fund will have to manage three types of risk, and not least: a financial risk, as referred to above; a risk business inherent in the quality of the company it bought and its ability to develop highly competitive markets and a risk management. To control and minimize these risks, it is essential for the Fund to ensure the good management of the undertaking of which he became a shareholder. To this end, it will therefore define progress indicators and monitor. At best, the company should grow, keep costs under control and to focus on its management of cash. It turns more or less quickly, more or less natural way, but in depth. People who were not accustomed to manage their needs working capital (stocks, accounts customers/suppliers...) are suddenly looking at much more closely. In the same way, budgets considered until then how fairly lax, become any more ambitious stroke and form the basis for the setting of new objectives. Of belle endormie, society becomes progressively conquering! Budgets are more sophisticated. Their management is transformed into performance lever.

If the structure change of nature, is the same for its management. Indeed, it is being forced to evolve at the same time than to invest a minimum one year of salary in the company. Simple running or activities on a part-time Manager, managers access, from one day to the next day, the status of free contractor and shareholder, with all the responsibilities arising therefrom. A revolution for these executives forced to live for years under the benevolent tutelage of their mother house, with the cumbersome nature of the reporting that this implies. A real culture shock for these elites whose employer cleverly annihilated, over the years, the entrepreneurial spirit, for the benefit of a so-called "consensus" approach Accept this challenge, it is, at the same time demonstrating his confidence in his business, but in its own capacity to the fly. The shareholder and manager share both the risks and the potential for success. The company is then more energized and better working condition to gain market share.

This new managerial mode is based on what I would call "the performance ethics". Real engine of progress for the LBO companies, it can also become tomorrow a track of reflection intended to improve the performance of other companies. Therefore, some large groups multi-activity, organized as conglomerates, should not think about a possible mutation of their management system What would happen if they were to behave more like financial holdings, shareholder of a number of activities and in this regard, to draw an approach initiated by the funds, with their interests