Fund: Objectif Innovation 2018

FCPI Objectif Innovation 2018 is aimed at investors wishing to diversify their wealth by investing over the long term in unlisted innovative companies, mainly located in France, and benefit, under certain conditions, from an income tax reduction in 2018 and a tax exemption on the amounts distributed by the Fund and any capital gains realized on the redemption or sale of Fund units.

These advantages are available in return for a risk of capital loss and a minimum lock-up period of 7 years, i.e. until December 31, 2025. This lock-up period may be extended to 9 years at the discretion of the Management Company, i.e. until December 31, 2027. With the exceptions described in the Regulations, investors may not redeem their units during the lifetime of the FCPI.

Eurazeo's investment teams have been developing their expertise in the Innovation Capital segment since 1999. For over 20 years, we have supported 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 FCPI Objectif Innovation 2018, 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 selectivity rate and based on criteria that include, in particular:

• companies' market positioning
• attractiveness and development strategy
• capacity for innovation
• the potential of the management team
• market outlook
• 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 expanded in recent years to become one of the world's most dynamic hubs.

The Fonds Objectif Innovation 2018 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": so-called "innovative" companies generally have, in the experience of the Management Company, little recourse to debt, and will be mainly financed by capital, and technological innovation, which is the key to tomorrow's new markets.

RISK FACTORS

Investors are invited to consider all the risks inherent in investing in Fund units, which are detailed in the Fund regulations. The risks listed below are an extract of those mentioned in the regulations:

Risk of capital loss. An investment in the Fund entails a risk of low return or even partial or total loss of the amount invested in the Fund. In addition, as the Fund offers no capital guarantee, the capital invested may not be returned in full.

Risk of illiquidity of the Fund's assets. The Fund will mainly hold securities that are not admitted to trading on a financial instruments market, and whose liquidity may be low or non-existent. As a result, and although the Fund's objective will be to organize the disposal of its holdings under the best possible conditions, it cannot be ruled out that the Fund may experience difficulties in disposing of such holdings within the timeframe and at the price level desired or initially envisaged.

Risks inherent in all equity, quasi-equity and mezzanine investments. The purpose of the Fund is to provide immediate or long-term equity financing for companies. As a result, the Fund's performance is directly linked to the performance of the companies in which it invests, which are subject to numerous uncertainties such as: downturn in the business sector, recession in the geographical area, substantial changes in the legal and tax environment, unfavorable exchange rate trends, etc.

Past performance is no guarantee of future results.