Our Diversified Funds (FCPR & FPCI)
Our methodology is based on an in-depth analysis of investment opportunities and a commitment to creating sustainable value. We identify high-potential assets within the European hotel market, leveraging our expert network and specialized knowledge of sector dynamics.
Our investment philosophy is rooted in the proactive and meticulous management of every asset in our portfolio. Our strategy involves identifying opportunities and maximizing the potential of each asset through targeted renovations and strategic repositioning. We then implement initiatives to optimize revenue by leveraging our extensive network of hotel operators.
Expert-Led Hospitality Investment Solutions
Our “Diversified” fund range provides investors with access to institutional-grade hospitality deals, offering balanced exposure across multiple geographies and hotel segments.
These diversified vehicles are structured as either Venture Capital Fund (FCPR) or Professional Private Equity Fund (FPCI) [1], enabling investors to diversify their alternative allocation through high-conviction hospitality opportunities.
Our strategy is built on rigorous, active asset management designed to capture growth and unlock value across a resilient and varied asset base[2].
To ensure transparency, Extendam provides regular investor updates, including semi-annual newsletters and comprehensive annual management reports, tracking fund performance and strategic developments in line with regulatory requirements.
Why Partner with Extendam?
Whether through direct engagement or via our distribution network, we provide the clarity needed to understand fund objectives, risk parameters, and the long-term outlook of your investment. Investors receive consistent reporting through semi-annual updates and statutory annual reports.
By allocating to Professional Private Equity Fund (FPCI) or Venture Capital Fund (FCPR) with Extendam, you gain specialized sector expertise while enhancing your portfolio’s diversification through a proven leader in European hospitality.
Access unique opportunities in the European hotel sector through our dedicated funds.
Regulatory Risk Warning
These are unlisted vehicles with extended lock-up periods, involving a significant risk of capital loss. They are intended solely for Sophisticated Investors who possess the requisite knowledge and experience to evaluate such instruments.
Professional Private Equity Funds (FPCI) are not subject to AMF approval and are strictly reserved for Sophisticated Investors as defined by Article 423-49.I of the AMF General Regulation.
Venture Capital Funds (FCPR) may be accessible to professional or qualifying investors, subject to their specific structure and prevailing regulations.
This information is provided for indicative purposes only and does not constitute a recommendation, an offer, or an invitation to invest. Past performance is no guarantee of future results.
Extendam accepts no liability for unauthorized use by non-sophisticated investors. Prior to any commitment, investors must review the Fund Rules and ensure the investment aligns with their financial situation and objectives.
Illiquidity Risk
As the Fund invests primarily in inherently illiquid assets, unit redemptions are strictly prohibited throughout the Fund’s lifespan. The lack of a secondary market for unlisted securities may result in assets being divested below their valuation, negatively impacting the Fund’s Net Asset Value (NAV).
Capital Loss Risk
The Fund provides no capital protection. Investors may not recover their initial principal in part or in full.
Tax Risk
Tax-advantaged status is subject to strict compliance with the French General Tax Code, which may be impacted by legislative changes or unforeseen regulatory shifts.
Hospitality Sector Risk
Fund performance is intrinsically linked to the underlying hotel businesses operated by Portfolio Companies. No assurance can be given regarding the operational performance or profitability of these hospitality assets.
Sustainability (ESG) Risk
Risks associated with environmental, social, or governance events that could materially impair the investment’s value.
Capital Loss Risk
The FPCI does not offer any capital protection. Consequently, all or part of the initial capital invested may not be returned.
Risk related to the Lock-Up Period for Investors
Redemption requests for securities are not permitted during the FPCI’s investment lifetime, which may be extended twice by one year, at the discretion of the Management Company.
Liquidity Risk
The FPCI mainly invests in equity securities, or securities granting access to the capital of unlisted companies. As such, the Management Company may face certain difficulties disposing securities within the desired timeframes and at expected price levels.
Risk related to insufficient diversification
The FPCI may not constitute a diversified portfolio of investments, whether in terms of sectors or geographies. As a result, underperformance by Portfolio Companies could have a material adverse impact on the overall performance of the FPCI.
Sustainability Risk
Risk related to an environmental, social, or governance (ESG) event or condition which, if it occurs, could cause an actual or potential material negative impact on the value of the investment.
Hospitality Risk
Investments made by the FPCI will be subject to risks inherent to the hotel sector, managed directly or indirectly by the Portfolio Companies. There is no guarantee regarding the performance of the hotel assets and, therefore, of the Portfolio Companies held by the Fund.
Everything you need to know about Diversified Funds (FCPR and FPCI)
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How does an FCPR work?
An FCPR (Fonds Commun de Placement à Risque) invests primarily in unlisted companies, generally allocating at least 50% of its assets to this category.
Investors purchase units in the fund, which are managed by a professional portfolio management company. Returns are derived from the capital gains realized upon the resale of these holdings. However, venture capital investments involve a risk of capital loss.
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What is the primary asset class for an FCPR investment?
An FCPR must primarily invest in securities of companies not listed on a stock exchange. At least 50% of the fund’s assets must consist of participatory securities, equity securities, or securities providing access to the capital of unlisted companies.
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What is the recommended investment horizon for an FCPR?
The duration varies depending on the management company’s strategies. At Extendam, it is generally 6.5 years, extendable twice for one year at the management company’s discretion*.
This lock-up period is necessary to benefit from specific tax advantages and to allow for the optimal operational management of hotel assets.
*This duration is indicative and subject to change based on the specific characteristics of each fund.
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How does Extendam monitor investments for its clients?
We provide:
- A semi-annual newsletter
- A regulatory annual management report
- Direct access to our team of experts to answer investor inquiries
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What types of hotels are targeted by Extendam's FCPRs?
We focus on a range of European hotel assets with various characteristics, including:
- Economy and midscale hotels
- Establishments strategically located in high-demand tourism or business hubs
- Assets with significant value-enhancement potential through active management
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What is an FPCI?
An FPCI (Fonds Professionnel de Capital Investissement) is an investment vehicle not subject to AMF approval. it is reserved for Informed Investors (as defined by Article 423-49.I of the AMF General Regulation) who accept the risk of capital loss and specific risks associated with this type of investment. This type of placement involves a minimum lock-up period. It allows for investment in unlisted companies, offering potentially high returns in exchange for increased risk and reduced liquidity.
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Who is eligible to invest in an FPCI?
FPCIs are reserved for professional investors, informed investors, and corporate entities committing a minimum of €100,000. This restriction is designed to protect less experienced investors from the risks associated with this asset class.
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What is the typical duration of an FPCI investment?
The investment duration of an FPCI varies according to the Fund Rules. Traditionally, this duration is set at 10 years, with a possibility of extension.
Following the French “Attractiveness Law” (Loi Attractivité) of June 2024, the maximum lock-up period for these funds has been increased from 10 to 15 years.
At Extendam, our FPCI durations are generally 6.5 years, extendable twice for one year at the Management Company’s discretion. This duration is indicative and subject to change.
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How does Extendam create value within its hospitality FPCIs?
Our value creation strategy focuses on hospitality asset management, operational optimization, and collaboration with leading hotel operators.
Our approach is based on deep sector expertise and a diversified investment strategy across major European tourism zones.
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Which hotel segments are targeted by Extendam's FPCIs?
We target a portfolio of European hotel assets characterized by:
- Positioning in the economy and midscale segments
- Strategic locations in areas with high tourism or business potential
- Opportunities for value creation through optimized management and repositioning
Note: Past performance is not indicative of future results. Investing in private equity involves risks, including the risk of capital loss and illiquidity. Please refer to the Fund Rules before any investment.
* For a detailed description of the risks, please refer to the Fund Rules.
[1] Reserved exclusively for Sophisticated Investors as mentioned in Article 423-49.I of the AMF General Regulation.
[2] Past performance is not indicative of future results and is not constant over time.
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