Fund: Idinvest Expansion 2017

Idinvest Expansion 2017 is a limited company making a public offering of 300,000 BSA A warrants. BSA A warrants are securities giving access to the company's capital if their holder decides to exercise them. If exercised, each warrant entitles the holder to subscribe for one A share at a price of 100 euros each (excluding subscription rights), i.e. a maximum capital increase of 30,000,000 euros if all the A warrants are exercised. Eurazeo is managing the company to build up and monitor its portfolio of investments. The prospectus is available from Eurazeo and on the AMF website www.amf-france.org.

Idinvest Expansion 2017 will focus on acquiring stakes, mainly minority 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 in that market, the quality of its management and its ability to lead the development of the business.
 

The fund 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 2017. If this amount is less than €3 million, Idinvest Expansion 2017 will abandon the operation. In order to offer risk diversification, Idinvest Expansion 2017 may not invest more than 40% of the subscriptions in any one company. Particular attention has been paid to diversifying this 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 more than 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.

For the FCPI Idinvest Expansion 2017, the team aims to select between 25 and 30 companies considered by the management company, following a rigorous study, to be the best opportunities in this market segment. The team applies a rigorous selection process, with a very high level 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.

The Indinvest Expansion 2017 Fund 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 through capital and technological innovation, which is the key to tomorrow's new markets.

These advantages are available in return for a risk of capital loss and a minimum lock-up period of 7 years, i.e. until 31 December 2024. This lock-up period may be extended to 9 years at the discretion of the Management Company, i.e. until 31 December 2026. With the exceptions described in the Regulations, investors may not request the redemption of their units during the lifetime of the FCPI.

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.