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Claims

Investing in private equity funds

Understand your needs

Investing in Private Equity funds implies taking stakes in non-listed companies to finance their launch, growth, divestment, transmission or recovery indirectly. You commit to stay invested for around ten years. Unlike direct investments in non-listed companies, you leave it to the Private Equity fund to create value.

Private Equity is a key catalyst for economic development. It boosts corporate growth and job creations and helps new generations of business leaders emerge.

Our experts carefully select the Private Equity funds with the best managers and strategies likely to meet your objective of creating value.

You can also count on us to drive you towards the allocation most consistent with your requirements.

Why Private Equity ?

Low correlation to other asset classes: In terms of performance, Private Equity funds are less volatile than listed markets.

Diversification: You can diversify away from more traditional asset classes.

Step by step

#1

You meet your banker, and maybe your Societe Generale Private Banking investment advisor too.

#2

Together, you discuss: your investor profile and horizon, which will determine your ability to invest in Private Equity; the amount you wish to invest; and the existing share of Private Equity in your portfolio, when applicable.

 

#3

If necessary, your banker can ask our Private Equity experts for advice and organise a meeting with them.

 

#4

Ultimately, an investment in Private Equity funds may be recommended depending on your profile.

Questions/Answers

Assuming such an investment is deemed consistent with your profile, the only prerequisite is the minimum amount required. Private Equity investments will attract entrepreneurs, former entrepreneurs but also investors interested in the real economy and seeking performance and low correlation to listed markets.

It corresponds to the cost of an asset plus the costs required to acquire it.

What are the risks ?
  • Illiquidity : your investment cannot be converted to cash whenever you want.
  • Long-term horizon : private equity funds are expected to be held for a long period (often 10 years or more) as their managers invest in companies, create value over a number of years and sell your holdings for you. In return, you receive distributions – mainly at the end of the holding period.
  • Capital loss risk : you take the risk of losing all or part of the capital invested excluding costs, if the fund is sold at a price lower than the price-to-book ratio
Important information

The content provided on this page is for informational purposes only and is not contractually binding. The materials contained herein are not intended to provide investment advice or any other investment service and do not constitute a personal recommendation, advice, or an offer from Societe Generale Private Banking to purchase, sell or subscribe to investment services and/or financial products and/or investments in the aforementioned asset class. Some of the products, services and solutions described can carry various risks and involve the potential loss of the entire invested amount, if not theoretically unlimited loss. As such, they are reserved for a certain category of investors and/or adapted solely for informed investors who are eligible for such products, services and solutions. The information set out above shall not be considered legal, tax or accounting advice.

The wealth management and financial solutions, offers, products, services and activities mentioned on this page depend on each client’s personal situation, the legislation applying to them, and their tax residence. Consequently, the offer presented may not be eligible for implementation, adaptation or approval at all of the Societe Generale Private Banking entities and must comply with Societe Generale Group's Tax Code of Conduct. Furthermore, access to some of these products, services and solutions is subject to specific conditions, notably in respect of eligibility.

Please contact your private banking adviser to check that these offers meet your needs and are suited to your investor profile (knowledge, experience in investment, financial situation, including ability to withstand losses, and investment objectives, including risk tolerance).

Societe Generale Private Banking shall under no circumstances be held liable for any decision taken by a reader on the basis of this information. Before Societe Generale Private Banking can provide a potential investor with an investment service and/or a subscription to financial products, the investor must first be made aware of, understand and sign the related informative and contractual documentation, notably in respect of the associated risks (prospectus, Key Investor Information Document, Term Sheet, etc.). The potential investor must not base his/her investment decision and/or give investment instructions solely on the basis of this document.

All Societe Generale Private Banking entities reserve the right not to update or amend this document and shall accept no liability in this regard. The present document has the sole aim of informing investors, who will make their investment decisions without overly relying on this publication. The Societe Generale Private Banking entities shall under no circumstances be held liable for the accuracy, relevance or exhaustiveness of this information. The Societe Generale Private Banking entities give no explicit or implicit guarantees as to the accuracy or exhaustiveness of this information or of the profitability or performance of any asset class, country or market.

Generally speaking, Societe Generale Group companies may be market makers, conduct transactions involving the securities referred to on this page, and may provide banking services to companies whose asset classes are mentioned on this page, as well as the subsidiaries thereof. Societe Generale Group companies may, from time to time, conduct transactions, generate profits, hold securities or act as adviser, broker or banker in relation to these securities, or derivatives thereof, or in connection with the asset classes mentioned in this document. Societe Generale Group companies may, from time to time, acquire or liquidate positions on the securities, or the underlying assets (including derivatives), mentioned on this page or, where applicable, any other assets. Consequently, this may affect any returns for a potential investor either directly or indirectly. Societe Generale Group companies have no obligation to disclose this page or take it into account in providing advice or conducting transactions with a client or on behalf of a client. The administrative structure of the Societe Generale Group includes all safeguards needed to identify, control and manage conflicts of interest. To this end, Societe Generale Private Banking entities have implemented a conflict of interest management policy to prevent such conflicts of interest. For further details, Societe Generale Private Banking clients may refer to the conflict of interest management policy given to them by the Societe Generale Private Banking entity of which they are clients.