Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Wendel's Q3 2026 Trading Update Conference Call and Webcast. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. You can also ask your questions on the webcast. Olivier Allot, Director of Financial Communication and Data Intelligence, will read them. I must advise you that this conference is being recorded today.
I would now like to hand the conference over to your speaker today, Mr. Jérôme Michiels, Wendel's Executive Vice President. Please go ahead, sir.
Thank you, and welcome everyone. I am here today with Cyril Marie, member of the executive board, Benoît Drillaud, our CFO, Olivier Allot, and Lucile Roch from our investor relations team. I will walk you through the main highlights of our Q3 trading update and we will be happy to take your questions after this short presentation. Let me start on slide number four with the highlights of another important quarter for Wendel with a solid operational performance at Wendel Investment Managers with continued revenue growth at constant perimeter and constant exchange rate. From the start of the year, we've had 10% at Wendel Investment Managers. Cyril will come back to that.
At the level of WPI Principal Investments, we have reached key milestones in terms of portfolio rotation with EUR 1.6 billion of value consideration from the disposal of power that we completed at the end of the quarter, and IHS that we expect to complete in the coming month. These two disposals were carried out at an average 20% premium to the pre-announcement NAV. Lastly, we delivered a +5.1% increase in terms of net asset value per share over the quarter, reaching EUR 167 per share, supported by favorable valuation multiples impacts and continued operational performance across our businesses. If we move to the next slide, you can see that Wendel Investment Managers now manages EUR 48.7 billion of assets across private equity, private debt, and secondaries.
In terms of fee-paying assets under management, they total EUR 37.7 billion, which is a 9% increase over the last 12 months, adjusting for scope effects, and +5% since the start of the year. Management fees and other revenues represent EUR 344 million over the first nine months of the year. It's a total growth of 41% compared to the prior year, but this reflects the full year contribution from Monroe over the nine months and the acquisitions of Committed Advisors that we closed in April 2026. The growth at constant perimeter and constant exchange rate was solid, double digit at +10%. Moving on to Wendel Principal Investments. As you know, we are engaged in numerous value creation initiatives.
We have registered major value crystallization events during this year, and our portfolio companies continue to deliver a solid performance across the board with some difficult market conditions affecting some of our businesses. Overall, we have had a good growth in terms of net asset value at Wendel Principal Investments. Let's now double click on the increase of our net asset value over the quarter on the following slide, which adds up to EUR 8.10 over the quarter. Breaking down this number, you can see that Wendel Investment Managers, Wendel Principal Investments, and share buybacks have all contributed positively to the total of EUR 8.10.
Wendel Investment Managers mainly through the increase in the valuation of our sponsored money, and Wendel Principal Investments through the increase of the share price of Bureau Veritas over the quarter and the rebound in the market multiples that we use to value our non-listed principal investments over the quarter. This is EUR 2.7 coming from Bureau Veritas share price and EUR 5.8 per share coming from our unlisted assets. Lastly, the finalization of our share buyback program has delivered a positive accretive effect of EUR 0.50 over the quarter. Building up on this theme of shareholder return on the next slide, let me expand a little bit on what has been done.
As you know, it's an important topic in our capital allocation strategy, and since the beginning of the year, we have returned approximately EUR 450 million to our shareholders through dividends, EUR 140 million, and share buyback, EUR 310 million, which is 9% of our share capital only in five months. Including the interim dividend to be paid in November of EUR 2.55, shareholder returns will exceed EUR 500 million in 2026. Together with the positive performance that we report today, I think this demonstrates our ability to combine growth, portfolio rotation, sustained cash flows, and attractive shareholder returns that are now part of our business model.
Cyril?
Thank you, Jérôme. The Wendel IM platform is ramping up, sorry. We have closed the Committed Advisors transaction in Q2. The onboarding of this new affiliate is on track. As mentioned by Jérôme, in term of revenues for the first nine months, we are at EUR 344 million, so +41%. It reflects now the full contribution of Committed plus the IK and Monroe. If we try to look at really the underlying growth of the business on the line for like it's 10% growth rate, double digit. We are on track to deliver around EUR 200 million of FRE on a pro forma basis for 2026. That was the target announced in December last year. What is also very important, I think it's the quality of the fundraising activity. As you know, Monroe Capital is always raising capital, and Committed Advisors is raising capital this year.
We are at EUR 3 billion of equity raise since the start of 2026. We have done close to EUR 800 million in Q3, coming mainly from Monroe. The pipeline for Monroe, the demand for private credit in the U.S. and for Monroe Capital remains very strong. It has paid in Q3, and we will see more in Q4. It is very dynamic. If we look at the bridge in term of AUM, as mentioned by Jérôme, we end the quarter at EUR 48.7 billion in total. If we look at the fee paying AUM, we end at EUR 37.7 billion. If you look at the bridge, the contribution since the beginning of the year, you have the benefit of the integration of Committed Advisors for EUR 5 billion.
If we look at the organic dynamics, we have new fee paying AUM for EUR 5.3 billion, EUR 4 billion coming from Monroe Capital. It is mainly the deployment here. It is not the fundraise, it is the deployment of the institutional vehicle, and EUR 1.3 billion coming from the equity raised by Committed Advisors. Exits and paydowns of EUR 4.2 billion. We have returned a lot of capital to our LPs, mainly Monroe and Committed Advisors. It is very important. With that, we end the quarter at EUR 37.7 billion.
Thank you. A couple of other items on WPI. As you know, portfolio rotation has been an important topic for us in 2026. I am pleased to report that we completed the disposal of Stahl on October 1st, as expected, and we have received EUR 1.1 billion of proceeds as part of this disposal. Together, Stahl and IHS will represent EUR 1.6 billion in 2026 at levels again that are well above the pre-announcement NAV of each of these assets. On the operational side of things, most portfolio companies have continued to perform well, despite an environment that remains mixed in certain sectors. In terms of valuation, as I said, the rebound in market multiples over Q3 has resulted in a positive impact on our NAV for principal investment.
Let me now briefly comment on the revenue trends across our main portfolio companies on slide 11, starting with the largest one, Bureau Veritas, which has continued to deliver excellent performance in line with the targets confirmed and upgraded at their latest Capital Markets Day, and showing a sequential improvement of organic growth to 6.2% over Q3 and 5.7% over the first nine months. Growth remains broad-based across key geographies and business lines, and the company confirmed its objectives and remains one of the strongest performance in the TIC sector. At Scalian, the performance remains impacted by softer demand in certain digital activities, particularly in France. That said, aerospace and defense markets remain strong growers as Scalian is regarded as one of the best players in these categories in its core markets.
The ongoing execution of the operational transformation program has continued and is delivering efficiency gain and margin protection. CPI has faced some challenging conditions in its market, especially in North America. We have seen very good growth at the international division, but this has not entirely offset the softer trends that we are seeing in North America. Management is actively focused on strengthening the organization and executing initiatives to return to a higher pace of growth. At ACAMS, management continues to execute well with membership growth, recurring revenues, momentum, an increase, and a strong level of profitability. We continue to see attractive long-term opportunities around recurring revenue and AI-enabled solutions at this company that are coming online.
Lastly, at Globeducate, strong growth, as you can see, both organically and in terms of scope, which is part of the investment thesis there. We have solid demand across most geographies and operational initiatives and expansion projects coming online, continue to support the long-term value creation plan at this company. Just a word on the other unlisted assets. As you know, Tarkett is now unlisted, and Monroe is classified as an asset held for sale. The combined value of these two assets in our NAV as of September 30 is roughly EUR 300 million. As you will have seen, given the geopolitical context, the contribution of Tarkett's Russian operations is not valued in our net asset value. There is no change compared to the previous NAVs, but I just wanted to report that together, Tarkett and Monroe represent roughly EUR 300 million.
To sum up, we are seeing good operational momentum across most of our portfolio companies at WPI, and our management teams are laser focused on addressing the challenges that we face in some parts of the market, aggressively executing transformation programs to protect margins and enhance the business profile of these companies. A word on our financial structure, which is very strong and one of our key strengths. Following the receipt of the proceeds from Stahl, the level of our cash is at EUR 1.5 billion. Our average cost of debt is extremely low and fixed at 2.8% on average. We have no debt maturity before June 2030. Lastly, our loan to value is at 9.5%, leaving substantial flexibility to us for future capital deployment.
I remind everyone that this LTV calculation includes all the commitments in Wendel Investment Managers funds that have not yet been called, as well as the put options for our GPs. So at 9.5%, which includes, again, everything, we have full financial capacity to grow. Let me now conclude, and I would say that Q3 was another quarter of solid execution with a NAV increase of more than 5%, significant portfolio rotation, and very good momentum at Wendel Investment Managers, which continues to scale, posting solid results. We remain focused on growing our asset management platform, at creating value within WPI, and maintaining a disciplined capital allocation framework in line with what we laid out for the company through to 2030.
With that, we would be happy to take your questions. Thanks, everyone.
Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. If you wish to ask a question via the webcast, please type it into the box and click submit. We will now take our first question. The first question comes from the line of David Cerdan from Kepler Cheuvreux. Please go ahead.
Yeah. Good afternoon, gentlemen. I have a couple of questions, if you may. The first one is regarding the capital allocation. With the disposal of Stahl, now you have plenty options. So what would you favor in this kind of environment and the risk maybe of certain economic downturn in the coming months? My second question is regarding the, I would say the cash-in and cash-out for your platform. If I'm right here to date, you get some stronger fundraising than exit. Do you think that this positive trend is possible for the next month? Sorry. Thank you.
Thank you, David. On the capital allocation strategy, we've laid out at our last Investor Day what we intend to do within the EUR 7 billion that we expect to generate between capital gains and cash flows cumulated from our activities. We actually allocate, I would say, a slightly disproportionate share to building out the asset management platform, both through investment in sponsored money to support the fundraising and our GPs, as well as paying for the puts that some of them are materializing by 2030. We will, however, continue to invest as well in new principal investments, and we do see some opportunities to invest. It's not a very active market, but nevertheless, we see good opportunities, and we are obviously targeting businesses that can grow through the cycle, that are profitable. We will continue to allocate.
Lastly, obviously, we have a very strong policy in terms of shareholder return. With increased dividend that we also need to fund. This is all part of the capital allocation strategy, and having received EUR 1.6 billion of proceeds is part of that. We are on track to execute our strategy, and we expect to do more in the coming months. Maybe for asset management, Cyril will further comment on the capital allocation strategy and on your second question on fundraising versus disposals.
Thank you, Jérôme. In terms of fundraising and what you call cash in, cash out, I think by this you mean the evolution of the fee-paying AUM. If you look at the situation over the first nine months, the large contribution is the deployment of capital at Monroe. We still have a lot of dry powder, and as I said, we are raising capital. The demand from the institutional client remains very strong, so we will pursue deployment of capital. The other element of increase of the fee paying this quarter on the first nine months is Committed Advisors because then they are paid on committed capital. They are just at the beginning of the fundraising. The secondary expertise is, there is a lot of strong demand from LPs also on this. We believe that we will continue to gather assets and deploy capital on this.
We are quite confident for the coming quarters. As you know, IK is not raising capital this year, it is for next year. They have a good pipeline, with the discretion of the client. The demand for European investment is good. For sure, performance remains key, but the key point is diversification. When we did the Capital Markets Day in December, I do not know if you remember, but we have shown that each year will be different. This year it is the year of Committed Advisors for the closed-end fund, and next year it will be IK . Where we have always new flows is for Monroe Capital. With all of this, we are quite confident on the growth of the fee-paying AUM.
Just maybe a clarification. Your objective for the fee-paying AUM is roughly to grow at 15%, is it correct?
Yeah. On average over the period. You will have years when it is above, year when it is below, but on average, yes, it is 15%.
Okay. Sorry, if we exclude Committed Advisors, we are below this number today for in 2026?
Yeah, because this year the fundraising affiliate, it's Committed Advisors. Next year it will be IK. Monroe Q3 for sure, as you can see, was lower because they have less deployed capital this quarter. They have been very selective. They have deployed above 1 billion, which is low compared to what they do in previous quarter. They try to be selective. It's a difficult environment, but it could be more next quarter. Over the long term, we do not change the perspective in term of fee-paying AUM growth and revenue growth as a consequence.
Okay. Thank you very much.
Thank you. As a reminder, to ask a question, please press star one and one on your telephone. That's star one and one. We will now take the next question. From the line of Filippe Goossens from Degroof Petercam, please go ahead.
Yes. Good afternoon, gentlemen. Thanks for taking my questions. I have a few, if I may. Just maybe a follow-up on the question on the capital allocation. You are sitting on about EUR 1.6 billion in dry powder, if I may call it. If I understood the answer correctly, what you are going to do with that EUR 1.5 billion, it is more kind of participating in the investment strategies of your alternative asset managers as compared to continuing to build out your third pillar by making other acquisitions of other asset managers. Is that the correct way to understand it? You are basically done. You are now in private equity, you are in private credit, you are in secondary strategies. That is the platform you would like.
Therefore, the capital that you have now available following the sale will go in co-investing in the strategies of your partners? Or maybe also putting some money to work with the principal investment decision? How should I look at that?
No, I will comment on my side here. If you remember what we presented at the Capital Markets Day, we want to do the three. We want to pursue the investment in asset management. On this, based on your comment, we have in mind to add new verticals, not five, but maybe one or two infrastructure and maybe U.S. buyouts. That is allocation one. Allocation two is pursue, as Jérôme said, we want to pursue our investment on the principal investment. Three, the third use of the capital is a return capital to shareholder. We want to do the three. This will come from the capital generated by the activity, but also by disposal and reinvestment. You have the example of Stahl, you may have other disposal on the principal side. It will be reinvested in new strategies.
It is a dynamic where we have to do the three. Pursue the investment in asset management and also pay the contingent payment. Investment in principle investment. Strong return capital to shareholder. For this we have the capital generated by the FRE and also the disposal of our assets. With this three -year time horizon. It's the three.
Okay. My second question goes more towards the general state of the private markets. We had this morning, Blackstone reporting results for the third quarter that were somewhat mixed. They missed on the top line. They actually missed on an adjusted basis, EPS as well. Anyhow, the two questions I have on the private side is, one, obviously, first half of this year, many questions in terms of private credit as it relates to redemption requests, particularly for the evergreen strategies as a result of concerns or questions about the impact of AI on the software business, and now maybe some questions about the potential negative impact on credit quality given the rise in rates. If you just can comment a little bit with Monroe, how they're being impacted by that.
Secondly, on the private equity side, I had an opportunity to talk to some managers over the last week in London. They said the exit environment remains very difficult. Obviously, that impacts fundraising. If you could elaborate a little bit on exits, is that for you basically selling to other private equity firms? Is it selling to industrial buyers? Because I don't think you are that dependent on IPO. A little bit of color on exits, what you're seeing would be very helpful. Thank you so much.
Okay. I hope you have 30 minutes. I'll try to be concise and we can pursue this offline, but on private credit. Let's start with client demand. As I said, the demand for private credit, at least for Monroe, remains very strong from institutional clients. You have the figure I gave you for Monroe. You can look at market studies. It's a record year. It's a record year for demand fundraising on private credit for institutional clients in the U.S., in Europe and in Asia. More importantly, for U.S. private credit. Why? Because the underlying growth of the U.S. economy remains very strong. When you invest in this type of asset class, you get a double digit. When you do it as Monroe does it, meaning with strong diversification by sector, by geography, et cetera, in the U.S., you get a very strong risk reward.
They do it in the lower mid-market. It is an area where you can really get diversification. You have low leverage, and they are not exposed at all to the large AI loan, et cetera. Not at all. It is not what they do. It remains a very good value proposition for investors. Demand on the institutional side is very strong. Where you are right, it is on the retail side. There is still more request in term of redemption versus new money for the retail vehicle. It is true for the industry as a whole. It is also true for Monroe. If we look at the first nine months, there are main vehicles called MCIP. It is a BDC. If you look at the exit and the net inflows, the net-net is -EUR 165 million in term of equity. It is important.
We would prefer to have growth, but the thing is that it remains limited versus the total growth of the business. For sure on the retail side, it is still the case. The good news for us is that the redemption request for Q3 was 6.9 after Q2 at 8.9. It is decreasing, and we are well below all our main peers. I think it comes from, first, the quality of the value proposition of Monroe. Two, I think the way we have distributed those products, the team at Monroe, they have done a good job. For this, we are well positioned versus the peers. That being said, we are still in outflows for EUR 165 million over nine months, which is, we prefer to have positive flows. If I turn to private equity, you are absolutely right.
If we look at the statistics of the market, whether it is U.S. or Europe, the transaction, it remains difficult. You need to have very good assets. Valuation also is challenging with the rate increase. Still, we believe that, we talk about IK, they are doing a good job to transform the firm and to create value for the GLP. We have lot of ongoing transaction, and I hope Q4 will be a good quarter to announce exit. This challenging environment, it is a good way to show that you are better than the other to deliver alpha to your clients. With IK, we are quite confident. In a nutshell, you have the market reality is what you just described. I think you will have more and more dispersion between the top players and the other in this environment. That is my answer.
Okay, thank you. Maybe a final, if I may. 2026 FRE objective is EUR 200 million on an adjusted or a pro forma basis. Is it too early to provide us a little bit of a look into 2027, what your objective might be?
So you know in December last year, we gave two things. It was a long time ago because 2026 was a quite challenging year. But we gave this target, and it is still our target to reach around EUR 200 million in 2026. And we gave also second guidance is 15% CAGR per year. It will not be exactly 15% per year because we will have year with strong fundraising. We do not change what we said one year ago at the Capital Markets Day.
Okay, that is very helpful. Thank you so much.
Thank you. We will now take the next question from the line of David Cerdan for Kepler Cheuvreux. Please go ahead.
Yeah. I have a question regarding the bridge and the valuation of the unlisted asset. If I am correct, it is something like +10%. When I look at the multiples, I think that it was more than 10% upgrade. My question is, have you reduced maybe your estimate on your unlisted asset? When I look at the performance year to date, it is true that Scalian, CPI, and ACAMS are not really growing. This is my question regarding the multiple impact and maybe the estimate impact, if you could share with us.
Yes, good afternoon. Most of the variations comes from the multiples, listed peers multiples.
Yes, we haven't changed not significantly any of the expectations that we have at this point in time in the year. We are using 2025 actual and 2026 earnings estimate. You pointed out the negative trend at Scalian and CPI, but this was expected in the plan. As you know, at Scalian, we are executing a transformation plan. We see good results coming from the cost base, from the pipeline of offering and the commercial activity. Nevertheless, we had always expected to have still a negative year in 2026. Same thing for CPI. We were expecting modest decrease. This is what we see, but we haven't changed any of our estimations over the quarter. As Benoît said, this is mostly related to valuation multiples.
Okay. Just for CPI and ACAMS, what is the plan for the next years to accelerate this modest organic growth?
Well, we have many initiatives going. Just to illustrate a few, sales force effectiveness. We are putting in place hunters and farmers type of organization. We have key account managers that are dedicated to the enterprise, to SME, to smaller businesses or institutions. We have account executive management. So much more efficient from a sales perspective. We are also working on the product content by itself, and how we launch new product, or we adjust our offering to make them more relevant. The delivery of the content, we are working heavily on that in terms of technology, digital, the tech stack, the access, the online enrollment of the customer. We have many initiatives going on. We are looking at pricing and the CEOs of both companies are executing major improvements there that we don't see yet in the results.
It's fair to say that we faced some headwinds in the U.S. related to the shortage of funding at federal level. But we see bright spots in some parts of the market as well as at international, and we are now tracking every month, obviously, KPIs that show that the transformation, which is ongoing, is starting to bear fruit. But it will nevertheless take some further time before we return to growth. But I think we are on the right path there, and management is doing the right things.
Okay.
It's not a problem of profitability. I mean, the profitability remains very high. We are not posting profitability there in Q3, but I'm sure you will remember from H1, the profitability levels at ACAMS or CPI is very healthy. The question more is now how we return to growth. There is some investment required to come to that, and we are making the investments in terms of incurring cost as well as capitalized cost or small CapEx. But this is an important part if we want to be done, if we want to return to growth. And it's the same at Scalian. We are investing, we are hiring. We just hired the Chief AI Officer.
We've completely redesigned the offerings to incorporate more AI. The organization is now much more efficient in terms of sales, in terms of delivery, in terms of executing financial reporting, et cetera. It is really very impressive what has been done.
Are you supported by IK Partners for--
Yes, for all our private[crosstalk].
Scalian, CPI, ACAMS.
Yes. For all our private investments, we have an advisory agreement with IK. IK has appointed a team dedicated to each of our investments. We have between three and four people from IK on each of our portfolio companies. It is not people that are working for other customers of IK. We are the sole customer of this team, and they have deployed resources on each of our private companies, including operations, operational partners, and they are really very committed and very helpful in the way we manage our companies. We used to be a handful of investment executives at Wendel spread out across the portfolio.
Now we have access to all IK's expertise and backbone, which is when you look at the success of IK in terms of fundraising, et cetera, it is a testimony to the quality of the teams that run this organization. We benefit from that, and it is very helpful.
Okay. Last question is regarding the leverage in the unlisted asset. If I am correct, Scalian has a debt maturity by 2028. Can you maybe give us some colors on what you expect to do?
Yes.
And if I'm correct for Globeducate, I didn't find the maturity of the debt, while the structure of the company is quite leveraged. So if we could have some details on that, it could be helpful. Thank you.
Yes, certainly. So yes, in Scalian, we have a big part of the debt that matures end of 2028. And we have very much that in mind. As I said, we are in the middle of or well advanced in our transformation plan. And we expect leverage to come down. It's already coming down, actually. I mean, the last few quarters, we've seen leverage coming down organically, through the initiative that management is deploying. We've ratcheted down a bit on the margin. That's small details, but nevertheless, it's a little bit helping. In terms of cash generation, we have a strong focus on cash generation. So all in all, we expect leverage to come down at the end of 2026, at the end of 2027, and mid-2028.
And by the end of 2028, we expect Scalian to be at a level of leverage that will be conducive to extending or finding new debts to extend maturity. That's where we want to be, and we see no reason why we shouldn't succeed. If the plan is well executed to come to a leverage level where we will be able to find financing at good conditions for this asset. It's delivering on its plan quarter after quarter. So that's very supportive, I would say. In terms of the maturity for Globeducate, it's June 2030. So you see we have a fair amount of time.
A lot of time, yes.
Yes. And leverage has actually. You might qualify leverage as high. But remember, we just did a capital increase during the months of September, to fund some M&A, which is part of the investment thesis. So leverage, I would say, is under control. Some view education businesses as infrastructure. We not go as far as this, but once you have enrolled students in September, you have excellent visibility on your revenues for the year. And you can manage your costs according to priorities and pace your investment in terms of extension. So that is a cash-generating type of business after investment. Or before, sorry, investment in new extensions. So, the level of leverage commensurate with the cash-generating profile of this company.
Thank you, Jérôme. Very clear. Thank you.
Thanks.
Thank you. There are no further questions on the phone. I would like to turn over to Olivier Allot for webcast questions.
Thank you. We have a lot of questions from Arnaud Palliez and Alexandre Gérard. We will start with the NAV-related questions. In your NAV calculation, can you break down sponsor money between IK, Monroe, and Committed?
I don't think we break this down or maybe in the financial statements, but for the nine months, at the end of September, I don't think we break this down. We have the total number.
Yes, we didn't. But, for Monroe, we had roughly EUR 200 million already called. Committed Advisors was about EUR 45 million, if I remember well. IK is close to EUR 90 million, EUR 100 million, the amount called.
Thank you. Regarding. Just to be sure, can you confirm that at September end under private assets, there are only four assets booked, Scalian, CPI, ACAMS, Globeducate for total EUR 2 billion and EUR 189 million, or does it include Tarkett and Monroe ?
It does include Tarkett and Monroe .
Can you quantify the impact of Russia on the valuation of Tarkett?
There is no impact, as we said. This had already been taken into account as part of the previous NAV calculations, so there is no impact.
Thank you. Among unlisted assets, can you provide us more details on market multiples evolution? What are those seeing revaluation and those on the opposite side?
All our companies have viewed their peers multiple increasing since the end of June. We have a positive contribution for all the unlisted assets, except for Globeducate, just because we use a transaction multiple, so we have no equity market effect.
Thank you. Now we move to questions about Wendel Investment Managers. Is there a slight downward revision in your full-year FRE expectations for 2026 from above EUR 200 million to around EUR 200 million? Why?
As I said previously, we gave this guidance one year ago. One more time, we are still in line to reach this to be around EUR 200 million, but the environment is very volatile. We want to be cautious is the deployment at Monroe and the evolution of the retail. We do not change this target to reach around EUR 200 million, but it will depend on the Q4 environment. No particular change.
Thank you. What is Wendel's share in these EUR 200 million?
For the target, I do not have it in mind.
Share is a little bit below 60% in average, because we have 72% for Monroe, we have 51% for IK, a little bit higher than 50% for Committed Advisors. It makes an average a little bit below 60%.
Thank you. Can you give a breakdown of the EUR 200 million FRE between the three asset managers?
No, we don't give this. I think that it's a platform, so you have to see this as a platform with diversification in term of development. We don't have in mind to disclose the profit contribution by affiliates.
Thank you. Can we go for a 15% increase next year for FRE?
We had the question. I think that when we did the Capital Markets Day last year, we said that we gave two guidance. The first one was, look, after the completion of the acquisition of Committed Advisors, the pro forma profitability of the platform will be around EUR 200 million. Two, we consider that with the investment processes, the expertise we have, when we look at the scalability of each firm, if we reach the hard cap when we raise capital, we can deliver 15% over the long term, and we don't change this.
Thank you. What about PREs? What are your expectations for 2026?
For the PRE, we have today the only PRE we have coming from Monroe, so it is above EUR 10 million, so it remains quite marginal. Keep in mind that for each transaction, we bought also 20% of all future carried right for new funds, Committed, IK, and Monroe Capital. It will take time. It will start to have an impact in 2030, 2031. Short term, it will remain marginal.
Can you remind us what are the fundraising initiatives in 2027 for the three asset managers?
Okay. Committed Advisors is the GP currently raising capital with CASF VI plus. There are new strategy GPS II. They have in mind to raise, for the first strategy, EUR 3.7 billion. For GPS II, the target is EUR 800 million. They are very close to this, so it is well on track. Most of the fundraising will be in 2027. That is for Committed Advisors. IK, we have not announced so far what will be the size of the fundraising for the next vintage. But in the previous vintage, we raised close to EUR 6 billion. We will start the fundraising for IK in Q4 2027. For Monroe, it is different because as you know, they have evergreen vehicles, SMAs, and closed-end funds. They are always raising capital.
As you can see, we have raised close to EUR 1 billion this quarter. You will have always fundraising coming from Monroe every quarter.
Thank you. Now we have a question about net asset value. What is the rationale for using transaction multiples to value Globeducate in particular and not the other private assets? Do you intend to sell this asset?
No. Just because we don't have listed peers for Globeducate. That's all.
Thank you. I have no more question on the web. Maybe we can come back to phone questions.
Thank you. We will now take our next question from the line of Zach Wurz from Autonomous Research. Please go ahead.
Hi there. Good afternoon. Thanks for taking my questions. Apologies, thought I was in the queue previously. I have got two questions, please. Firstly, the release said you feel that you have now reached critical scale in the asset management business. What does reaching critical scale actually allow you to do differently from here? Are there specific opportunities in distribution, product development, acquisitions, new strategies that are available now that perhaps were not realistic previously? Second, following the Stahl and IHS transactions, Bureau Veritas again becomes a larger part of the portfolio, at least for now. How strategic is that holding today? Should investors think of it as a long-term core asset, or would you be open to further monetization over time as you continue to scale the asset management platform? Thank you.
We will start with the critical size and the merit of the platform. I think when you look at the critical size, you have either strategy at the critical size and then the platform from a corporate standpoint. From a strategy standpoint, each of our GPs, they are the critical size in their field. They are really focused on what they do, mid-market. They are vintage five, vintage eight, and they have a lot of strong track record. They have the critical size to pursue their development, to have a strong origination, and be relevant in front of different type of clientele. Then, from a platform standpoint, with the size now, we can have more organic development initiative. We have a strong balance sheet. We can add new verticals beside the mature strategies.
Also the other merit is the cross-selling. Then you have a long list of initiative, is geographical cross-selling, it is be together at event, is to have more strategic discussion with what we call the strategic investors. It is not possible when you are one single GP, but when you are part of a platform like Wendel, you have the merit of that. We have just disclosed one number. We have close to 1,000 LPs. We have only 10% of those LPs in common between the three GPs. We have to develop the cross-selling. It is not easy to do it, but we do believe that we can reinforce the cross-selling.
The last thing I would like to add is on the wealth management and retail. I think if for the institutional sales process, it has to remain very close to the investment managers. When you do retail, where you have to do marketing efforts, et cetera, if we do it all together, the three GPs, we can be more relevant in front of the platforms.
Regarding your question on Bureau Veritas. Well, we are very happy shareholders of Bureau Veritas, especially since they have upgraded their growth guidance. At the Capital Markets Day, we see sequential improvement in Q3, and they are delivering with now the share price over EUR 29 again. We are very happy about this. We are a core shareholder of Bureau Veritas with 21.5%. We are the largest shareholder of this company, and we have been there for the long term. We have discussed or touched upon our capital allocation strategy. As I said, we are on track with EUR 1.6 billion with Stahl and IHS. We are in no rush to generate more capital returns. We now have a cash flow-generating business, which is sizable with Wendel Investment Managers.
We expect, not tomorrow, but in the longer term, to also receive first distributions on our sponsor money invested. We are very well funded in terms of available cash, EUR 1.5 billion, cost of debt 2.8%, no maturity before 2030, loan to value under 10%. So really, we are in no rush to sell any asset, be it unlisted or Bureau Veritas. Remember, we will receive further proceeds for IHS once the transaction completes, so nothing to expect there.
Great. Thanks very much.
Thank you.
Thank you. There are no further questions at this time. I would now like to turn the conference back to Jérôme Michiels for closing remarks.
Thank you. We were very glad to be here today with Cyril and Benoît for this Q3, which was another quarter of solid execution with NAV increase, portfolio rotation, solid results at Wendel Investment Managers reaching further scale. We will remain, as I said, very focused on executing our capital allocation strategy, and the transformation program that are going in some of our private companies. Thank you very much, and see you at our Investor Day.
This concludes today's conference call. Thank you for participating. You may now disconnect.