FCPI investment: Boost your investments

FCPI (Fonds Communs de Placement dans l'Innovation) funds offer a unique opportunity to invest in innovative companies while diversifying your assets. By supporting high-potential sectors such as technology and healthcare, investors play an active part in the development of forward-looking projects. What's more, FCPIs offer attractive tax benefits, such as a reduction in your income tax. This type of investment is a strategic way of gaining a foothold in high-growth markets.

It is important to be well informed about the risks associated with FCPIs, particularly in terms of volatility and company performance, before making any investment decision. 
 

Investing in a FCPI means taking part in the emergence of tomorrow's innovations, enabling you to support promising projects while benefiting from diversified management.

What is a FCPI?

A FCPI, or Fonds Commun de Placement dans l'Innovation, is a collective investment vehicle designed to support the development of innovative companies, mainly unlisted SMEs. These funds, which are regulated by the Autorité des Marchés Financiers, give investors access to high-potential sectors such as technology, health and the environment.

How do FCPI funds work?

FCPIs raise funds from investors to finance companies deemed to be innovative. These companies must meet specific eligibility criteria, such as devoting a significant proportion of their expenditure to research and development. In return, investors can benefit from the performance of these SMEs and from certain tax advantages.

Discover Private Equity through FCPIs

Private equity involves direct investment in unlisted companies, often start-ups or innovative SMEs with strong growth potential. Thanks to FCPIs, individual investors can gain access to this promising market, while benefiting from diversified, collective management that reduces risk.

A diversified investment solution

FCPIs offer interesting diversification, as they give access to an investment universe often reserved for professionals. By investing in a variety of sectors, such as technology or renewable energy, these funds enable investors to benefit from the growth of innovative markets. What's more, they are an effective complement to other investments, such as securities accounts or PEA investments.

Investing in FCPIs allows you to become actively involved in high-potential projects, while benefiting from a favourable tax framework.

Supporting innovation and the real economy

Investing in FCPIs means directly supporting the bold companies that are shaping the technologies of tomorrow. It also means contributing to the dynamism of the French and European economy.

Significant tax benefits

FCPI funds offer attractive tax breaks. By investing in a FCPI, you can reduce your income tax by up to 18% of the amount invested, up to a limit of €12,000 for a single person and €24,000 for a couple. What's more, capital gains realised on exit are tax-exempt, subject to a minimum holding period.

An attractive yield opportunity

The SMEs financed by FCPIs are selected for their high growth potential. Although there is some risk, these companies can offer significant potential for growth, making FCPIs an investment that pays off over the long term.
 

FCPIs present specific risks that it is important to identify before investing. Due to their nature and the development phase of the companies supported, investors should be aware of the main risk factors.

Volatility inherent in innovative SMEs

Companies financed by FCPIs are often in a development phase, which makes them more sensitive to economic and financial ups and downs. This can lead to increased volatility in the value of the fund.

Possible loss of capital

Like all investments, FCPIs do not guarantee initial capital. It is therefore essential to diversify your portfolio by combining FCPIs with other investments, such as a securities account or a mutual fund.

Limited liquidity

FCPIs are long-term investments and do not allow you to withdraw your capital before the end of the holding period. Liquidity is therefore limited, which can be a disadvantage for investors looking for flexibility in managing their portfolio.

A restrictive investment period

FCPIs require a long holding period, generally between 5 and 10 years, in order to benefit fully from the tax advantages and return prospects. This type of investment is therefore aimed at investors with a long-term vision.

High management fees

FCPIs can involve relatively high entry, management and exit fees. Before committing yourself, you should carefully examine the fee structure of each fund to make an informed choice.

FCPIs can be a strategic tool for optimising your portfolio in line with your long-term tax and profitability objectives.

Completing a diversified portfolio

FCPIs fit perfectly into a diversified asset strategy. They can be combined with traditional investments, such as equities or bonds, to spread risk and optimise returns.

Holding FCPI funds in a securities account

FCPI funds are not eligible for the PEA, but they can be held in a securities account, which offers great flexibility for managing your investments and combining different types of asset.

Compare the funds available

It is essential to analyse the characteristics of the various FCPI funds to choose the one best suited to your objectives. Check the investment strategy, target sectors, past performance and associated costs.

Choosing a FCPI should be based on objective criteria that will ensure a good match with your financial objectives. To choose the best investment funds, it is important to consider key factors that will influence the profitability and management of your investment over the long term.

Assessing the quality of management

Opt for funds managed by companies recognised for their expertise in investing in innovative SMEs. Active and rigorous management is essential to maximise performance.

Sectoral and geographical diversification

Some FCPIs focus on a specific sector, such as biotechnology or artificial intelligence, while others adopt a broader diversification. It is essential to choose a fund whose strategy matches your investment objectives.

Anticipating exit tax

Although FCPI capital gains are exempt from income tax, they are still subject to social security contributions. Take this into account when simulating returns.

FCPI funds give investors access to fast-growing companies, while benefiting from tax advantages. This type of investment is particularly suited to those wishing to boost their assets by taking part in the growth of new technologies and promising start-ups.

Eurazeo, a major player in private equity, offers funds specially dedicated to investing in unlisted companies with high potential. These professionally managed funds offer retail investors exposure to a wide range of sectors, from cutting-edge technologies to environmental innovations.

Investing in private equity involves high risks, including the possibility of partial or total loss of the capital invested. It is therefore essential to seek professional advice.

This article was produced by Eurazeo Global Investor and is for information purposes only. It should not be construed as a solicitation or offer relating to financial products, nor as legal, tax, financial or any other kind of advice. Readers are invited to contact their own advisors for any analysis relating to the content of this article. The information presented does not claim to be exhaustive. Accordingly, this document alone should not be relied upon in making an investment decision. Please refer to the legal documentation of the funds mentioned before making any final investment decision.

Past performance is not necessarily indicative, nor a guarantee of future results. Information on past investments is provided solely to illustrate the nature of these investments and the related investment strategy and process. There can be no guarantee that the investments made by the funds will produce comparable results, or that the targeted returns will be achieved. Investing in private equity/private debt funds involves a risk of capital loss and illiquidity.