PARIS — French investment firm Experienced Capital is shaking up its leadership.

Frédéric Biousse and Elie Kouby, who cofounded the corporate in 2016 with fellow ex-SMCP (Sandro, Maje and Claudie Pierlot) executive Emmanuel Pradère, have relinquished their operational roles within the firm, effective Nov. 13, ECP said on Wednesday.

Because it gears up for its next fundraising round next 12 months, Experienced Capital might be managed by Pradère, president of the corporate since 2019, and team members Alban Gérard, partner since 2021; Amélie Gosselin-Furno, who has been appointed partner as a part of the restructuring, and Virginie Birade, director.

Biousse and Kouby will regularly sell their shares within the management company to the team over the following two years, Pradère told WWD. They are going to remain board members of the businesses in ECP’s portfolio and limited partners in its first two funds, he added. They may also proceed on the firm’s investment committee.

“It’s a generational handover,” Pradère said, noting that the change has been within the works since 2019. “During that point, our investment team has grown and turn into more lively within the deal flow.”

ECP’s first fund, focused on reasonably priced 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 skincare 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. So far, the firm has made investments of between 8 million euros and 20 million euros in 14 brands, essentially 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 primary half of 2024 with the aim of raising 150 million euros, despite the unfavorable context of high rates of interest, Pradère said.  

“Today, funds that perform well can raise as much as they need, however it takes a little bit longer. Whereas a fundraising round could have taken 10 months when rates of interest were low and all the pieces happened faster, now it could possibly take as much as 18 months,” he said.

The firm said it achieved a multiple of greater than six times its investment in Soeur. Today, its first investment vehicle ECP I is entering the exit phase. “We’re aiming for an above-average return on investment,” Pradère said.  

Going forward, ECP’s essential challenges are to proceed identifying brands prone to appeal to its affluent goal consumer, and to offer operational support to portfolio brands with a specific emphasis on digital development and sustainability. “We prefer to say that we’re a destination fund, so we goal brands that this customer group is drawn to,” he explained.

Among the many segments where it sees strong potential are wellness, which incorporates cosmetics, health care, noninvasive cosmetic surgery and food supplements; experiential leisure, and services.

“There’s a requirement for experiences and for memorable moments,” the chief 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 now have significant know-how in that sector. But we now need to have a diversified portfolio strategy, so if within the third fund we now have 10 investments, fashion is likely to be one out of the ten,” he added.

Greater than half of the businesses ECP has invested in are founded and/or managed by women, reflecting its commitment to promoting corporate social responsibility, which incorporates appointing women to its senior ranks as a 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 singular place for itself within the French investment fund ecosystem, establishing itself as a number one European actor within 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 proceed to develop its portfolio and explore latest, complementary investment territories with the support of a highly talented investment team and operational experts, committed to the journey for a few years and with proven agility,” they added.

Biousse and Kouby will pursue personal projects, which within the case of Biousse include the event of luxury hotel group Les Domaines de Fontenille, the statement said.