What is a Venture Capital Fund (FCPR)?

A Venture Capital Fund (FCPR) is a collective investment vehicle (CIV) that belongs to the Private Equity family. Its primary objective is to invest at least 50% of its assets in companies not listed on financial markets. FCPRs are managed by authorized management companies (such as EXTENDAM) and are designed to finance business development and growth, allowing investors to participate in the dynamism of the real economy. They are particularly known for offering, under certain conditions, tax advantages in exchange for a lock-up period on the funds. Investing in an FCPR involves risks, including the risk of capital loss. These funds involve asset illiquidity and a long lock-up period for shares. Past performance is not a guarantee of future results. For any investment decision, it is essential to consult a financial investment advisor, a bank, or any other authorized intermediary.

How does an FCPR work?

A Venture Capital Fund (FCPR) operates as an asset portfolio whose management is delegated to the management company: Capital Raising: The fund is created and raises capital from investors (subscribers). Selection and Investment: The management company invests the funds in SMEs or unlisted companies that match the fund’s strategy (for example, in European mid-scale and upscale hotels). Management and Development (Holding): During the life of the fund (often 5 to 10 years), the management team actively works on value creation within the held companies (via Asset Management, restructuring, etc.). During this period, shares are generally locked (illiquidity). Exit and Distribution: At the fund’s maturity, the holdings are sold (sale of securities or hotel assets). The net proceeds from these divestments are then distributed to the unit holders.

Who can invest in an FCPR?

Venture Capital Funds (FCPR) are generally open to a broader audience than FPCIs. They can be offered to individual investors (retail) provided they are aware of the specific characteristics and risks of private equity: Illiquidity: The invested money is locked for a set period, which is often long. Risk of Capital Loss: Private Equity investment is inherently risky. Tax Conditions: Potential tax benefits (if any) are subject to compliance with a minimum holding period for the shares. An FCPR is therefore accessible, but it is always recommended that the investment be made after consulting a financial advisor and ensuring that this type of product matches the investor’s risk profile and investment horizon.

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We answer all your questions about Venture Capital Funds (FCPR)

What is a Venture Capital Fund (FCPR)?

A Venture Capital Fund (FCPR) is a collective investment vehicle (CIV) that belongs to the Private Equity family. Its primary objective is to invest at least 50% of its assets in companies not listed on financial markets.

FCPRs are managed by authorized management companies (such as EXTENDAM) and are designed to finance business development and growth, allowing investors to participate in the dynamism of the real economy. They are particularly known for offering, under certain conditions, tax advantages in exchange for a lock-up period on the funds.

Investing in an FCPR involves risks, including the risk of capital loss. These funds involve asset illiquidity and a long lock-up period for shares. Past performance is not a guarantee of future results. For any investment decision, it is essential to consult a financial investment advisor, a bank, or any other authorized intermediary.
How does an FCPR work?
A Venture Capital Fund (FCPR) operates as an asset portfolio whose management is delegated to the management company:
1. Capital Raising: The fund is created and raises capital from investors (subscribers).
2. Selection and Investment: The management company invests the funds in SMEs or unlisted companies that match the fund’s strategy (for example, in European mid-scale and upscale hotels).
3. Management and Development (Holding): During the life of the fund (often 5 to 10 years), the management team actively works on value creation within the held companies (via Asset Management, restructuring, etc.). During this period, shares are generally locked (illiquidity).
4. Exit and Distribution: At the fund’s maturity, the holdings are sold (sale of securities or hotel assets). The net proceeds from these divestments are then distributed to the unit holders.
Who can invest in an FCPR?
Venture Capital Funds (FCPR) are generally open to a broader audience than FPCIs. They can be offered to individual investors (retail) provided they are aware of the specific characteristics and risks of private equity:
- Illiquidity: The invested money is locked for a set period, which is often long.
- Risk of Capital Loss: Private Equity investment is inherently risky.
- Tax Conditions: Potential tax benefits (if any) are subject to compliance with a minimum holding period for the shares.
An FCPR is therefore accessible, but it is always recommended that the investment be made after consulting a financial advisor and ensuring that this type of product matches the investor’s risk profile and investment horizon.