Our Hospitality Investment Funds

We answer all your questions about Professional Private Equity Funds (FPCI)

• What is a Professional Private Equity Fund (FPCI)?

  A Professional Private Equity Fund (FPCI) is a collective investment vehicle dedicated to Private Equity. It allows investors to take equity stakes in unlisted companies (private companies).

  FPCIs are regulated and managed by authorized management companies, such as Extendam. They are designed to finance business development, ownership transfers, or corporate turnarounds. Unlike funds open to the general public, the FPCI is reserved for well-informed or professional investors, as it requires an understanding of the specific risks associated with private equity.

  Investing in an FPCI involves risks, including the risk of capital loss. These funds are primarily intended for well-informed or professional investors. The lock-up period for shares is long, and liquidity is limited. 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 FPCI work?

  A Professional Private Equity Fund (FPCI) generally operates according to the following stages:

  1. Capital Raising: The FPCI raises funds from its investors (subscribers).
  2. Investment Phase: The management company selects and invests in target companies (in our case, primarily European hotel SMEs) according to a predefined strategy. The management team implements active Asset Management to increase the value of the holdings.
  3. Holding Phase: The lifespan of the fund is long (often between 5 and 10 years, or more). During this period, capital is locked, and investors cannot withdraw their investment, except in exceptional cases provided for by the fund’s regulations.
  4. Divestment (Exit): At the end of the fund’s term, the management company sells the holdings (divestment of hotels or hotel SMEs). The proceeds from these sales, after deducting fees and in the event of capital gains, are redistributed to the investors

• Who can invest in an FPCI?

  Professional Private Equity Funds (FPCI) are primarily intended for professional or well-informed investors. Generally, to subscribe to an FPCI, an investor must meet one of the following two conditions:

  1. Be classified as a Sophisticated Investor under financial regulations.
  2. Be classified as a “well-informed” non-professional client: This requires a high minimum initial investment (the amount is set by regulations, generally €100,000) and a formal declaration confirming the ability to understand the risks associated with this investment.

  Given the nature of the risks (illiquidity, risk of capital loss, long-term investment horizon), these funds are recommended only for investors with a strong knowledge of private equity and sufficient assets to accept the freezing of their funds.