PARIS — French investment firm Experienced Capital is shaking up its leadership.
Frédéric Biousse and Elie Kouby, who cofounded the company in 2016 with fellow ex-SMCP (Sandro, Maje and Claudie Pierlot) executive Emmanuel Pradère, have relinquished their operational roles in the firm, effective Nov. 13, ECP said on Wednesday.
As it gears up for its next fundraising round next year, Experienced Capital will be managed by Pradère, president of the company since 2019, and team members Alban Gérard, partner since 2021; Amélie Gosselin-Furno, who has been appointed partner as part of the restructuring, and Virginie Birade, director.
Biousse and Kouby will gradually sell their shares in the management company to the team over the next two years, Pradère told WWD. They will remain board members of the companies in ECP’s portfolio and limited partners in its first two funds, he added. They will also continue on the firm’s investment committee.
“It’s a generational handover,” Pradère said, noting that the change has been in the works since 2019. “During that time, our investment team has grown and become more active in the deal flow.”
ECP’s first fund, focused on affordable luxury, totaled 78 million euros and made investments in brands including French contemporary womenswear label Sessùn; underwear, swimwear and accessories label Le Slip Français; shirtmaker Figaret Paris, and menswear brand Balibaris.
Since then, it has expanded its focus to beauty and wellness, leisure, food, furniture and sports. Gérard helped ECP to diversify with the acquisition in 2019 of stakes in Swedish natural and organic skin care brand L:A Bruket, and French beauty retail business and product line Oh My Cream.
ECP’s second fund, launched in 2019, raised 96 million euros. To date, the firm has made investments of between 8 million euros and 20 million euros in 14 brands, the most recent being Danish kitchen furniture maker Reform in 2022.
Having sold its stakes in Soeur, Maison Standards and Jimmy Fairly, ECP plans to initiate its third fund in the first half of 2024 with the aim of raising 150 million euros, despite the unfavorable context of high interest rates, Pradère said.
“Today, funds that perform well can raise as much as they want, but it takes a little longer. Whereas a fundraising round could have taken 10 months when interest rates were low and everything happened faster, now it can take up to 18 months,” he said.
The firm said it achieved a multiple of more than six times its investment in Soeur. Today, its first investment vehicle ECP I is entering the exit phase. “We are aiming for an above-average return on investment,” Pradère said.
Going forward, ECP’s main challenges are to continue identifying brands likely to appeal to its affluent target consumer, and to provide operational support to portfolio brands with a particular emphasis on digital development and sustainability. “We like to say that we’re a destination fund, so we target brands that this customer group is drawn to,” he explained.
Among the segments where it sees strong potential are wellness, which includes cosmetics, health care, noninvasive cosmetic surgery and food supplements; experiential leisure, and products and services.
“There’s a demand for experiences and for memorable moments,” the executive said, noting that ECP already has stakes in BAM Karaoke Box, restaurant group Nouvelle Garde and fitness chain Monday Sports Club.
“We don’t exclude investing in fashion, since we have significant know-how in that sector. But we now want to have a diversified portfolio strategy, so if in the third fund we have 10 investments, fashion might be one out of the 10,” he added.
More than half of the companies ECP has invested in are founded and/or managed by women, reflecting its commitment to promoting corporate social responsibility, which includes appointing women to its senior ranks as part of the reorganization, Pradère said. ECP received B Corp certification in August.
“Since its creation seven years ago, Experienced Capital has carved out a unique place for itself in the French investment fund ecosystem, establishing itself as a leading European actor in the highly dynamic world of premium brands, and differentiating by providing concrete operational support to the entrepreneurs it partners with,” the three cofounders said in a joint statement.
“The transition announced today, which we decided collectively, should enable Experienced Capital to continue to develop its portfolio and explore new, complementary investment territories with the support of a highly talented investment team and operational experts, committed to the adventure for many years and with proven agility,” they added.
Biousse and Kouby will pursue personal projects, which in the case of Biousse include the development of luxury hotel group Les Domaines de Fontenille, the statement said.
