Altamir - 2018 Registration document

CONVERSATIONWITH MAURICE TCHENIO, CHAIRMAN AND CEO OF THE MANAGEMENT COMPANY

The private equity market continues to go from strength to strength. What impact is that having on Altamir and the wider market? It is hugely pleasing to see the private equitymarket continue to perform so strongly across all key criteria: funds raised, amount invested and amount divested. It is attracting ever more capital, fuelled by growing acceptance that it is the best- performing asset class over the longer-term – a view we have long championed. The challenge is increasingly to put those funds to work profitably. That has been made still harder because the sector is concentrating, with the bulk of funds being taken in by the largest and most sophisticated players.

$195.5bn invested on

the European Private Equity market in 2018*

The consequence of these factors is a very competitive environment that has translated into record entry multiples. The investment thesis can no longer assume an improvement in multiples at exit, which means you need a very sound investment case. It is more important than ever to have expertise and experience in both asset selection and transformation plan execution. You need to think not just about cost cutting; operational excellence is now about top line revenue growth and expand margins, notably through improved pricing. To execute you need the right management and IT platforms, multiple successful build-ups and internationalisation that provides synergies; you also need to take advantage of the current flexibility offered by the financial markets and, above all, you need to drive digitalisation. Altamir has always taken advantage of new opportunities, but there was a step- change in 2018 when Amboise increased its equity stake to 65%. It is true that Altamir has evolved and will continue to do so. At the end of 2018, 46% of our portfolio was in TMT or broadly in digital investments. This is up from 28% seven years ago, and digital will continue to grow its share because that is where the future lies. We have also shifted decisively to an international focus. In 2011, only 18% of our portfolio was outside of France, today 57% is, and even within the 43% allocated to France-based companies, most are international in scope. My determination to continue to make changes and my belief in the direction we have chosen underpinned the decision to make the tender offer that gave Amboise 65% of Altamir. This majority gives us the ability to drive further development. Wewill seize newopportunities in dynamic markets and began to do so in 2018 when we invested in Apax LLP’s digital fund and Apax France’s small-cap fund. I also want to increase our exposure to Asia, and that will likely mean partnering with new funds. And

“The private equity market continues to perform strongly and has become very competitive. This has translated into record entry multiples and it is more important than ever to have expertise and experience in both asset selection and transformation plan execution.”

*Source : MergerMarket

4 Registration document ALTAMIR 2018

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