Integra: Private equity

Private equity still often carries the image of a complex asset class, reserved for a small group of experienced investors. At Integra, they aim to nuance that perception. The Belgian player has, since 2018, built an internationally diversified approach, with investments in North America, Europe and Asia, while placing a strong emphasis on full peace of mind. With €700 million in capital raised, Integra is the Belgian market leader. Co-founder and Partner Ralf De Clercq and Investment Director Leonard Soenen offer insight into their vision of private equity.

Why do you consider private equity a structural building block in a well-diversified portfolio?

Leonard Soenen: “Those who invest generally want to do so in a diversified way. The people who turn to us often already have real estate and a portfolio of listed equities. What we add is access to privately held companies. That is an asset class that is much harder to access, but precisely for that reason, it forms an interesting addition.”

Ralf De Clercq: “Only a small proportion of companies worldwide are publicly listed. We are active in the much broader market behind that. On the stock exchange, you often see a concentration in large names, whereas there are many strong niche companies beyond that which hold an important position in their market. They often provide something that is essential for their clients, yet represents only a limited cost. As a result, they are less price-sensitive and can build attractive margins.”

Integra does not operate as a traditional private equity fund. What does this mean in practice?

Leonard Soenen: “A traditional fund typically invests in ten to fifteen companies. We apply a fund-of-funds model. Concretely, we invest in around 25 private equity funds, each of which in turn invests in multiple companies. This results in much broader diversification, internationally, sectorally and over time. At the same time, we take on the full complexity: from fund selection to administration and taxation.”

You also emphasise the human aspect. Why is this so important?

Leonard Soenen: “Because investing is also about trust. We deliberately build a community of investors. Of course, clients are looking for returns, but many also appreciate the network and the exchange. That is why we regularly organise events where clients can meet each other.”

Ralf De Clercq: “On the investment side as well, it is about people. You need to have confidence in the people behind a strategy. That is why we maintain those relationships very actively, including internationally. We also try to make this complex world as understandable as possible for our clients.”
Leonard Soenen: “Our team is also strongly aligned with our investors. We ourselves have invested a total of €12.5 million in our own products. That shows how closely involved we are.”

Which cliché about private equity would you most like to eliminate?

Ralf De Clercq: “That it is too expensive and that people think they can organise it themselves. There is often talk about double costs in a fund-of-funds structure, but that image is too simplistic. We combine fund investments with co-investments, which keeps the average cost competitive. Moreover, you need very substantial capital to build an internationally diversified private equity portfolio on your own. At Integra, this is possible from €1 million.”

Leonard Soenen: “Even wealthy families who initially try to build expertise internally often find that a specialised party works more efficiently. That is precisely where our added value lies: providing access, creating diversification and, at the same time, taking away all complexity.”