FCPR

Regulated bythe Autorité des marchés financiers (AMF), it allows investors to access assets that are generally difficult to obtain through traditional financial markets.

Private equity funds (PEFs) are one of the primary vehicles used to invest in private equity—that is, in unlisted companies at various stages of their development: start-up, growth, succession, or transformation.

How does a FCPR work?

A private equity fund raises capital from investors to invest in a portfolio of companies selected by a licensed management company.

The fund is professionally managed in accordance with a predefined investment strategy.

The invested capital may be directed toward:

• Unlisted small and medium-sized enterprises (SMEs) and mid-sized companies;
• Growing companies;
• Transmission operations;
• Private equity funds;
• Co-investments;
• Other eligible assets as provided for by the regulations.

The fund is managed by an investment management company that selects, monitors, and supports investments throughout the fund’s entire lifespan.

Why are FCPRs used in private equity?

Unlisted companies account for a significant portion of the economy but are generally difficult for individual investors to access.

The FCPR allows:

To access private markets

Investors can indirectly participate in the financing of private companies through a collective investment vehicle.

To benefit from professional management

Investment selection and monitoring are handled by teams specializing in private equity.

To spread the risk

The fund typically invests in multiple companies or funds, which helps diversify investors’ exposure.

The main features of a FCPR

A long-term investment horizon

Investments made by a venture capital fund typically span several years.

The typical lifespan of a fund is usually between eight and twelve years, although this can vary depending on the strategy.

Limited liquidity

Unlike funds invested in public markets, units in FCPRs are generally not transferable at any time.

Investors must therefore be prepared to tie up their capital for an extended period.

Periodic valuation

Since the majority of the assets held are unlisted, their valuation is based on specific valuation methods and is not determined daily by the market.

FCPR and Private Equity

The FCPR has historically been one of the most widely used vehicles in France for structuring private equity investments.

It allows you to invest in various strategies:

Private equity (buyout)

Financing for business acquisitions and transfers.

Growth Equity

Financing for rapidly growing companies.

Venture Capital

Investment in innovative companies at an earlier stage of development.

Some private equity funds invest directly in companies, while others take a fund-of-funds approach by selecting several specialized managers.

FCPR, FCPI, and FIP: What Are the Differences?

These vehicles belong to the same family but serve different purposes.

FCPR

Invests in unlisted companies or high-risk assets using a relatively flexible strategy.

FCPI (Innovation Investment Fund)

Invests primarily in innovative companies that meet specific criteria.

FIP (Local Investment Fund)

Invests in regional small and medium-sized enterprises as defined by regulations.

FCPRs generally offer the broadest investment scope among these three categories.

What are the risks associated with FCPRs?

Like any private equity investment, FCPRs have specific characteristics.

Risk of capital loss

The value of investments may go up or down.

Liquidity risk

Fund shares generally cannot be easily sold before the scheduled maturity date.

Risks associated with unlisted companies

The companies in which the fund invests may be exposed to operational, economic, or sector-specific risks that could affect their valuation.

History of the FCPR

1983: Establishment of the regulatory framework

FCPRs are being introduced in France to promote the financing of unlisted companies.

1990s–2000s: The Growth of French Private Equity

Private equity funds are gradually becoming one of the main financing tools for private equity.

Today

They remain widely used by asset management firms to offer investors structured access to private markets.

FAQ

What does FCPR stand for?

FCPR stands for "Fonds Commun de Placement à Risques" (Venture Capital Fund). It is an investment vehicle primarily intended for unlisted companies and private equity assets.

Is an FCPR listed on the stock exchange?

No. FCPRs invest primarily in unlisted assets, and their shares generally do not enjoy the liquidity of traditional financial markets.

Can you invest in private equity through an FCPR?

Yes. The FCPR is one of the main vehicles for accessing private equity in France, either directly or indirectly, depending on the fund’s strategy.

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Disclaimer: Investing involves the risk of capital loss. Past performance is not indicative of future results. The information presented in this article is intended solely for educational and informational purposes. It does not constitute investment advice or a recommendation to buy or sell any financial instrument.

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