In a recent ION Influencers fireside chat hosted by Giovanni Amodeo, Maxence Radix, CEO of CAPZA, shared his insights on the dynamic landscape of private markets. The conversation covered a range of topics, from the inception of CAPZA to the innovative financing solutions they offer. Below are the key points discussed:

Background and Growth of CAPZA: Maxence Radix began by outlining his journey with CAPZA, which started 20 years ago when the company was founded by Christophe Karvelis. He highlighted the transformation of CAPZA from a startup to a €10 billion private equity and private debt platform, emphasizing its Pan-European presence and focus on investing in SMEs across Europe.

Innovative Financing Solutions: Radix delved into CAPZA’s pioneering approach to private equity and private debt, particularly their development of “Flex Equity.” This innovative financing solution offers a hybrid of debt and equity, providing entrepreneurs with less dilution and more upside potential. He explained how Flex Equity allows CAPZA to be highly selective and cater to the specific needs of entrepreneurs, making it a popular choice in the market.

Market Evangelization and Competition: The discussion touched on the initial challenges of introducing Flex Equity to the market and how CAPZA successfully evangelized this concept. Radix noted the growing acceptance and competition in this segment, with major players like Blackstone and Apollo now offering similar solutions.

Balancing Creativity and Simplicity: Radix emphasized the importance of balancing creativity and simplicity in financing structures. He acknowledged the role of advisors in educating entrepreneurs about innovative financing options and ensuring they understand the potential risks and benefits.

Impact of Interest Rates on Flex Equity: The conversation explored the impact of interest rates on Flex Equity. Radix asserted that Flex Equity remains attractive regardless of interest rate fluctuations, as it offers a balanced risk-reward ratio that appeals to both entrepreneurs and investors.

Future of Private Markets: Radix shared his optimistic outlook on the growth of private markets, driven by factors such as the shift from public to private markets, demographic changes, and the increasing role of alternative investments in wealth management. He predicted continued growth and sophistication in the industry, with Flex Equity playing a significant role.

Sophistication of LPs: The chat highlighted the evolving sophistication of Limited Partners (LPs) and their growing acceptance of Flex Equity as a distinct asset class. Radix provided examples of how LPs are adapting to this new segment and the benefits it offers in terms of risk management and returns.

Talent Acquisition and Industry Challenges: The conversation concluded with Radix addressing the challenges of talent acquisition in the growing private markets industry. He emphasized the importance of finding individuals with integrity and entrepreneurial spirit, alongside offering competitive packages to attract top talent.

Key timestamps:

00:07 Introduction to the Fireside Chat
00:45 Maxence’s Background and Capza Overview
02:15 Innovations in Financing: Flex Equity
08:18 Balancing Creativity and Simplicity in Financing
10:20 Future of Flex Equity Amidst Interest Rate Changes
16:25 Market Trends and the Evolution of Private Equity
22:29 Talent Acquisition in a Growing Industry
25:01 Conclusion and Closing Remarks