In today’s private equity landscape, value creation has evolved far beyond cost optimization. At Seven2, it’s about transforming strategic vision into measurable outcomes—anchored in growth acceleration, operational excellence, and sustainability.
François Candelon, Partner for Value Creation & Portfolio Monitoring at Seven2, shares how the firm aligns every investment around a clear “exit animal”—a vision of the company at exit—and uses disciplined execution, AI-driven transformation, and sustainability as levers for resilience and premium valuations. From reengineering core processes with AI to embedding decarbonization into business strategy, Candelon explains how Seven2 builds companies that are not just exit-ready, but future-proof.
Seven2 has a value-creation strategy built around growth acceleration, operational effectiveness, and sustainability. How do you prioritize among these levers when working with portfolio companies at different stages of maturity?
At Seven2, our value creation strategy is anchored in what we call the “exit animal”—a clear, shared vision of the company we want to bring to market at exit. To achieve it, strategic alignment is critical: from day one, we work hand-in-hand with management to define the equity story and the two or three key priorities that will drive value over the holding period. This ensures that our efforts—whether focused on growth, operational effectiveness, or sustainability—are always in service of the end goal and don’t overwhelm our portcos. The choice of levers is never generic; it’s a joint decision, tailored to the company’s maturity and the strategic path to the exit animal. This alignment allows us to move quickly, stabilize performance, and then refocus on growth, always with the exit in mind. Our approach is systematic yet customized: we implement the fundamentals—governance, leadership assessment, reporting tools, cybersecurity, and sustainability—within the first year, then launch thematic programs based on the company’s unique needs. This discipline, combined with our ability to anticipate sector shifts, ensures we create resilient, scalable businesses that are ready for premium exits.
When it comes to growth acceleration, what patterns have you seen that distinguish high-performing portfolio companies in the tech and B2B service sectors from the rest?
High-performing companies consistently demonstrate ambition paired with clarity, but what truly sets them apart is the curiosity of their management teams and their openness to constructive challenge. This is a critical part of our assessment even before we invest. We look for leaders who are not only bold in their vision but also eager to learn, adapt, and be challenged. These teams are agile, data-driven, and quick to institutionalize lessons. They excel at scaling proven models and expanding into new markets, but above all, they combine a strong sense of purpose with the humility to question their own assumptions and the discipline to execute at speed. This blend of ambition, curiosity, and resilience is what drives sustainable growth and sets high performers apart.
AI-enabled transformation is becoming a major driver of value creation. How is Seven2 leveraging AI to enhance portfolio monitoring, decision-making, and overall company performance?
AI is at the heart of our value creation strategy. Our approach is pragmatic: we focus on “putting money in the bank” by hunting elephants, not rabbits—targeting large, transformative processes whose reengineering, powered by AI, can materially impact EBITDA, rather than scattering resources on small pilots. For example, we have reengineered core processes with AI, targeting significant EBITDA increases and launching AI-powered features that deliver clear, measurable value to customers and drive recurring revenues. We remain at the frontier of AI adoption: I personally stay connected to the latest developments as an Executive Fellow at Harvard and a member of the American Society for AI, and Seven2 is the first benefactor member at Hub France IA. Every year, we assess the AI maturity of our portfolio companies using the Hub France IA framework and develop customized roadmaps to ensure all are AI-ready at exit. Currently, we are developing a strong effort on Agentic AI—not just to automate tasks, but to become the operating system of companies, orchestrating workflows and enabling cross-functional collaborations. This positions our portfolio to capture the next wave of AI-driven value creation.
Sustainability is now integral to value creation. How do you embed decarbonization and CSRD compliance into portfolio strategies without compromising financial returns — particularly in high-growth-potential companies?
Sustainability is at the heart of what we do at Seven2. For us, it’s not a trade-off, but a strategic driver of both resilience and growth. We embed decarbonization and CSRD compliance into our portfolio strategies from day one, identifying the material priorities for each company—whether that’s enriching products and services, decarbonizing operations, or strengthening human resources.
Our experience shows that these initiatives do not compromise financial returns; in fact, they often enhance them. For example, Routin became a sustainability champion during our investment, achieving SBTi commitment, platinum EcoVadis, and B-Corp certification, and was ultimately sold at a premium to an Article 9 fund after a highly competitive process.
We ensure that every sustainability initiative is tied to a clear business case and long-term value creation. By making sustainability a source of competitive advantage, we help high-growth-potential companies not just comply, but lead in their sectors—delivering both impact and strong financial performance.
In a challenging exit environment, how do you prepare portfolio companies to remain attractive to buyers when markets are slower and valuations more conservative?
In today’s uncertain environment, resilience and adaptability are critical. We insist on annual Portfolio Company Updates to benchmark progress against the exit plan and review strategic priorities a couple of years before exit, allowing us to adapt to externalities and ensure the company remains on track. Our active governance process includes “corkscrew sessions” for rapid diagnosis and corrective action if we detect deviations from plan. This discipline, combined with a focus on building robust, future-proof businesses, ensures our companies are well-positioned to attract buyers even in conservative markets. We also emphasize the importance of speed—rapid diagnosis, quick alignment, and fast execution—so our companies can pivot quickly and seize opportunities as they arise. Ultimately, our goal is to build companies that are not only resilient but also positioned for premium valuations, regardless of market conditions.
Looking ahead, which emerging themes or technologies do you believe will redefine how private equity creates value over the next five years?
AI will be the main source of competitive advantage in the next five years. We are already seeing a fundamental shift: companies that master AI-driven process transformation and business model innovation will separate themselves from the pack. At Seven2, we make AI the core of our value creation plans, ensuring our portfolio companies are not just adopting AI, but using it to fundamentally reshape their operations and value proposition. This, combined with our continued focus on sustainability and strategic alignment, positions us—and our companies—to lead in the next era of private equity. The future belongs to those who are bold enough to blend technology, sustainability, and ecosystem strategies into their investment DNA. At Seven2, we are committed to leading this shift and helping our portfolio build competitive advantage for the next decade, not just the next quarter.
