Here is another video interview provided by the Basis Point Channel.

In a recent interview on the Basis Point Channel, PJ Frederix (main picture), head of direct Investments at Unigestion, shared how a career forged in the volatility of 2008 has shaped a philosophy of resilience and downside protection. Frederix entered the private equity scene at the height of the Great Financial Crisis, an experience likened by host Sherif Mamdouh to “starting a home decoration business while the house is on fire.” This formative period, characterised by fixing capital structures for cyclical businesses, left him wary of market cycles and drove his interest towards investment instruments that offer stronger downside protection.

Today, Frederix leads Unigestion’s direct investments team, focusing on a model that targets mid-market companies globally. By investing alongside specialist general partners (GPs) who require additional capital for larger deals or specific funding needs, Unigestion, which announced a tie-up with Sagard in September 2025, acts as a limited partner that provides the extra boost to make transactions happen. This approach allows for a "cherry-picking" strategy where the firm selects the most compelling opportunities from a deal flow already qualified by other professional managers.

Diversification and double diligence

For wealth managers and institutional clients, Frederix argues that this co-investment framework offers superior diversification compared with traditional buyout funds. Rather than having exposure to a single team or sector, investors gain a broader geographic and sectoral reach while benefiting from a multi-layered due diligence process. Frederix emphasises that Unigestion performs its own independent diligence on top of the GP's work, scrutinising the strength of the business model and how well the GP is positioned to drive value creation.

"Sweet spot"

The firm's focus remains on the lower and mid-market, a segment Frederix describes as a unique space between venture capital and large-cap enterprises. He notes that while large-cap firms often focus on public market exits, the mid-market offers "low-hanging fruit" for professionalisation, often involving the first institutional capital into family-owned or founder-led businesses.

Outlook

Looking to the future of the industry, Frederix highlighted the growing "retailisation" of private equity as a definitive trend.