Alban Gerard, Partner and Member of the Executive Committee at Experienced Capital, joined Giovanni Amodeo for an insightful fireside chat. The discussion centered around identifying opportunities in the premium consumer brands category. Here are the key topics discussed:

Background and Role at Experienced Capital: Alban Gerard shared his professional journey, starting at Blackstone in London, moving to Bridgepoint in Paris, and eventually joining Experienced Capital at its inception in 2017. He highlighted his role in focusing on premium consumer brands.

Investment Strategy and Market Focus: Gerard explained Experienced Capital’s investment strategy, which targets growth equity investments between €8 to €20 million in premium consumer brands, primarily in France and the Nordics. The fund invests across various sectors, including beauty, wellness, consumer healthcare, sports, leisure, and food and beverage.

Importance of Sector Specialization: Gerard emphasized the significance of sector specialization for mid-market and growth equity players. He argued that being a sector specialist allows firms to identify the right brands, add operational value, and achieve better returns for investors.

Characteristics of Premium Consumer Brands: The discussion delved into what defines a premium consumer brand. Gerard noted that these brands cater to affluent customers who maintain discretionary spending despite economic downturns. Key characteristics include strong community engagement, high margins, and a seamless omnichannel approach.

Market Dynamics and Consumer Trends: Gerard discussed the current market dynamics, noting the division between luxury, mass market, mid-market, and premium segments. He highlighted the challenges faced by mid-market brands and the opportunities for premium brands to capture market share from both luxury and mass market segments.

Execution and Value Creation: Gerard stressed the importance of execution in maintaining a brand’s promise to its customers. He shared Experienced Capital’s approach to value creation, which includes improving gross margins, building strong teams, and driving international expansion.

Origination and Deal Sourcing: Gerard described Experienced Capital’s origination strategy, which involves identifying potential investments early and building relationships with target companies over time. He highlighted the importance of proprietary and off-market transactions in creating value for investors.

Challenges and Opportunities in the Premium Segment: The conversation touched on the challenges premium brands face, such as maintaining their promise and adapting to market changes. Gerard also discussed the resilience of premium brands in the face of economic uncertainties and the importance of focus and reactivity.

Future Outlook and Strategy: Looking ahead, Gerard emphasized the need for Experienced Capital to stay true to its core strategy while considering diversification. He mentioned the potential launch of a third fund and the importance of maintaining a focus on growth equity investments in the premium consumer space.

Conclusion: The fireside chat concluded with Gerard reiterating the importance of execution, focus, and sector specialization in driving success for premium consumer brands. He expressed confidence in the continued growth and resilience of the premium consumer market.

Key Timestamps:

00:09 Introduction to the Fireside Chat
01:07 Overview of Experience Capital
01:55 Market Dynamics: Large vs. Small Firms
04:27 Understanding Premium Brands
06:50 Characteristics of Premium Consumer Brands
09:17 Maintaining Brand Promises
10:37 Evaluating Mid-Market Brands
11:30 Distinguishing Premium from Luxury Brands
12:53 Origination Strategies for Investments
14:37 The Importance of Proprietary Transactions
16:11 Investment Milestones in Premium Brands
17:37 Building an Advisory Network
18:59 Aligning with Entrepreneurs and Founders
20:39 Measuring Success in Brand Building
22:05 Educating Investors on Consumer Premium Brands
23:27 Diversification in Private Equity Strategies
24:49 Identifying Problematic Sub-sectors in Consumer Markets
25:55 Resilience in Challenging Economic Conditions