Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The French economy experienced a slight contraction in Q4 2024, with GDP decreasing by 0.1% quarter over quarter, following a 0.4% expansion in Q3 2024. Annual GDP growth for 2024 was 1.1% [8][9] - Inflation in France rose to 1.8% in Q4 2024, influenced by lower energy prices and persistent food prices [8][9] - The CAC 40 index had a year-to-date total return of 0.2%, underperforming compared to other European indices [9][10] - Venture capital deal value increased in Q4 2024, with significant investments in AI and cleantech sectors [11][12] - Private equity deal activity rose to over €21 billion in Q4 2024, marking the strongest quarter of the year [13][15] Market Overview - GDP growth was -0.1% in Q4 2024, with a year-on-year growth of 1.1% for the entire year [8] - CPI inflation stood at 1.8% in Q4 2024, with unemployment reaching a three-year high of 7.8% [8][9] - The CAC 40 P/E ratio remained stable at 16.0x despite a slight decline in the index [9] Equity Markets - The CAC 40 index finished the year with a total return of 0.2%, significantly lower than other European indices [9] - Six public listings occurred in Q4 2024, all of which were small, with no major IPOs on the Paris stock exchange [10] Venture Capital - VC deal value increased to €1.9 billion in Q4 2024, with a total of 236 deals [24] - The largest VC deals included €450 million raised by AI company Poolside and €120 million by Elyse Energy [11][57] - VC fundraising remained low, with less than €1 billion raised across 12 funds in 2024 [12] Private Equity - Private equity deal activity reached €21.2 billion in Q4 2024, with 272 deals completed [13][24] - PE exit activity remained low, with no mega-exits over €1 billion in Q4 [14] - PE fundraising was at a decade low in 2024, totaling €8 billion across 14 funds [15] Legislative Developments - The green industry law mandates French pension funds to allocate a portion of their assets to private equity investments, aiming to support the green industrial transition [16][17]