Fund: Idinvest Expansion 2016

Idinvest Expansion 2016 is a limited company making a public offering of 300,000 BSA A warrants. BSA A are securities giving access to the company's capital if the holder decides to exercise them. If exercised, each warrant entitles the holder to subscribe to one A share at a unit price of 100 euros each (excluding subscription rights), i.e., if all the A warrants are exercised, to a maximum capital increase of 30,000,000 euros. Eurazeo Global Investor is managing the company to build up and monitor its portfolio of investments. The prospectus is available from Eurazeo Global Investors SAS and on the AMF website www.amf-france.org

Idinvest Expansion 2016 will focus on acquiring stakes in European SMEs with strong sales growth prospects. The decision to invest will be taken after a thorough analysis of the company's market, its positioning on this market, the quality of its management and its ability to lead the development of the business.

Eurazeo Global Investors has pre-selected a number of investment opportunities in companies corresponding to the required investment volume on behalf of Idinvest Expansion 2016. Idinvest Expansion 2016 is committed to investing in at least 3 companies and plans to invest in a portfolio of between 3 and 20 companies. The number of investments will depend in particular on the amount of subscriptions received by Idinvest Expansion 2016. If this amount is less than €3 million, Idinvest Expansion 2016 will not proceed with the transaction. In order to diversify the risk, Idinvest Expansion 2016 may not invest more than 40% of the subscriptions in any one company. Particular attention is paid to diversifying the portfolio in investment sectors that reflect our investment expertise.

Eurazeo's investment teams have been developing their expertise in the innovation capital segment since 1999. For over 20 years, we have been working with ambitious founders and their teams to create the champions of tomorrow. The team has invested €2.6 billion in 450+ innovative companies through FCPIs.

The team aims to select between 25 and 30 companies that the management company considers, after rigorous research, to be the best opportunities in this market segment. The team applies a rigorous selection process, with a very high degree of selectivity, based on criteria that include

• companies' market positioning
• their attractiveness and development strategy
• their capacity for innovation
• the potential of its management team
• the outlook for the market in question
• exit prospects 
   

Technological change is reshaping global economies, with new technologies and innovative business models improving both efficiency and productivity. In response, Europe's digital ecosystem has grown in recent years to become one of the world's most dynamic hubs.

This enables investors to benefit from the long-term dynamics and growth potential of innovative companies, in return for a risk of capital loss and a 7-year lock-up period, extendable to 9 years, through a "capital culture": in the Management Company's experience, "innovative" companies generally have little recourse to debt, and will be financed mainly by capital and technological innovation, which is the key to tomorrow's new markets.

Investing in this type of company involves risks, particularly of illiquidity of assets and loss of capital. It is essential that investors familiarise themselves with these risks in the Fund Regulations and the Fund Information Document. The Fund is not a capital-guaranteed fund. It is therefore possible that the capital initially invested may not be returned in full. The Fund's performance will largely depend on the innovative companies in which the portfolio is invested. The performance of these companies may be affected by unfavourable factors and, as a result, the net asset value of the Fund may fall. Past performance is no guarantee of future performance.