E-commerce against traditional asset classes.
Return, entry price, liquidity, ticket: e-commerce compared with real estate, private equity and listed equities, strengths and constraints included.
Four criteria, one honest reading.
Comparing asset classes means looking at several criteria at once. A high return only makes sense in light of the price paid for it, how easily you can exit and how much you need to get in.
E-commerce stands out for a low entry price and a high, steady annual return backed by real assets. In exchange, it requires active management: a store has to be run every day to generate its income. Within Breakwater, that is TakeMyShop's job.
The ranges shown describe asset classes as a whole. They describe neither the fund's future performance nor its own terms, which are set out further down.
A profitable, overlooked asset class.
With few specialised operators, e-commerce know-how remains in the hands of merchants, and of TakeMyShop.
| Criterion | E-commerce | Real estate | PE / VC | Listed equities |
|---|---|---|---|---|
| Annual return | 15 – 25% | 3 – 6% | 10 – 15% | 7 – 10% |
| Entry multiple | 2 – 2.5× EBITDA | 15 – 25× rent | 8 – 12× EBITDA | 15 – 25× earnings |
| Liquidity | Medium | Low | Very low | High |
| Entry ticket (direct) | €50k+ | €100k+ | €100k+ | Any |
Indicative ranges by asset class. They say nothing about the fund's own performance.
What each asset class pays.
Observed annual return ranges by asset class. Bar length reflects the top of each range.
Sources: France Invest, Bain Global PE Report 2024, Crédit Foncier, MeilleursAgents, long-term S&P 500 and CAC 40 indices.
What the figures tell us.
E-commerce returns come from operating profits. They are higher because the entry price is lower and the asset is actively managed by a specialist operator.
At 2 to 2.5× EBITDA, a few years of earnings cover the price paid, where real estate and listed equities require far more.
A store can be sold within weeks on an active market. The fund, with a 10-year term, provides 15% liquidity through internal and external buy-backs.
A store can be bought from €50k. Breakwater requires €100k for an individual investing directly and €250k through an SPV, in exchange for a diversified portfolio and fully delegated management.
From asset return to investor return.
The table compares asset classes before costs. Investors, however, hold shares in a fund, with its own fees and term. Breakwater sets them out plainly: management fees of 3% per year, structuring fees of 8% at entry, and carried interest of 20% that only applies above an 8% hurdle.
The operator's fee, 15% of revenue for TakeMyShop and Lucrazia, is built into the running of the stores and grows with asset performance. It is after all these costs that the fund targets a dividend of 15% per year from year two, with upside potential once the portfolio reaches full run-rate.
- —Management fees: 3% per year
- —Structuring fees: 8% at entry
- —Carried interest: 20% above an 8% hurdle
Breakwater I in four figures.
Source: Breakwater Capital. Non-binding targets.
What the fund owns.
Stores selling real products, in everyday consumer sectors.
What the fund owns.
Stores selling real products, in everyday consumer sectors.
A complement, not a substitute.
E-commerce does not replace other asset classes. It brings what they do not.
Real estate offers tangible value and a moderate yield. E-commerce adds a higher return, drawn from everyday consumption.
Private equity buys companies at 8 to 12× EBITDA. E-commerce shares its ownership logic, at a much lower entry price.
Shares can be sold in a click, but they move with the markets. Store income follows customers, not trading sessions.
A high, steady return, paid out every year, with a dose of upside from the creation pocket. In exchange: active management, entrusted to TakeMyShop, and a 10-year horizon.
The questions we are asked.
Why are e-commerce returns higher?
Because the entry price is low, at 2 to 2.5× EBITDA, and the asset is actively managed. The return is backed by real assets: stores that sell to their customers every day.
Are the ranges in the table guaranteed?
No. They describe asset classes as a whole, based on the sources cited. They say nothing about the fund's future performance.
Liquidity is "medium": how do I exit the fund?
The fund has a 10-year term. It provides 15% liquidity through internal and external buy-backs. The exact terms are set out in the articles of association and the shareholders' agreement, available in the data room.
Why a €100k ticket when a store can be bought from €50k?
The ticket buys access to a diversified, operated and audited portfolio, rather than a single asset whose management the investor would carry alone. It is €100k for an individual investing directly and €250k through an SPV.
Returns, year after year.
How the fund's dividend is built, from the established pocket to the creation pocket, and how it varies across scenarios.
Indicative comparison based on the sources cited. The returns mentioned are targets or historical ranges, neither guaranteed nor binding. Investing involves a risk of total or partial loss of capital and the investment is illiquid. Past performance is not indicative of future results.