Wealth Management and Private Equity
Private equity or private equity is a way of financing unlisted companies that is to say outside the financial markets by providing them with equity through temporary equity investments, and thus participating in their development and value gain.
Capital is collected from investors through mutual funds (FCPR, FCPI, FIP) and professional private equity funds (FPCI) managed by management companies. In recent years, these investment funds have opened up to the greatest number due to a regulatory change, allowing individual investors to invest in unlisted in the same way as institutional investors. This investment solution presents a high potential return but also a risk of capital loss that should not be neglected. Make a visit to https://www.evergreenwealthformula.com/new/ for the best results there.
Fcpr: What Is A Risky Mutual Fund?
Mutual Risk Investment Funds (FCPR) allow you to invest in the capital of unlisted companies: either SMEs and SMIs needing financing to support their growth, development or the transfer of their activity, or project companies carrying out real estate promotion, rehabilitation and property trading operations. You thus finance the real economy while diversifying your assets since these funds finance and are positioned on several companies or real estate projects.
There are several types of risky mutual funds: FCPRs (risky mutual funds) which are invested in unlisted company securities, FCPIs (innovation mutual funds) which are invested in securities. innovative unlisted companies and FIPs (local investment funds) which are invested in unlisted regional SMEs.
FCPIs and FIPs differ from “classic” FCPRs by allowing you to benefit from tax advantages: an income tax reduction of 18% on subscription and an exemption from tax on capital gains on exit of the fund (if the units are kept for a minimum of 5 years). These funds are intended for a large audience and subject to AMF approval, as are the management companies that distribute them.
There are also FPCIs (professional private equity funds) and FPS (specialized professional funds) which are more recent unlisted investment vehicles, benefiting from lighter regulations and greater flexibility in their investment strategy. investment. These funds are rather intended for informed investors having some knowledge of financial instruments and able to invest at least 100,000 €.
NB: Be careful not to confuse FPCI (professional private equity fund) and FCPI (mutual investment funds in innovation) which are not subject to the same management constraints and do not allow you to benefit from the same advantages.
Unlisted Investment: Operation And Characteristics Of An Fcpr
Risky mutual funds follow a particular life cycle. First of all, there is a fairly short and limited subscription period (2 years maximum) during which you can subscribe. At the end of this period, the fund is closed for a life determined in advance (between 4 and 10 years), which can be extended from 1 to 3 years by the management company depending on the media chosen and its divestment strategy. The invested capital is then blocked during this period.