France-based Bpifrance launches Bpifrance Entreprises Avenir 1 fund: Know more

Paris-based Bpifrance, a company that provides financial solutions, announced that it is extending its range of investment solutions for individual investors with “Bpifrance Entreprises Avenir 1” (BEA1) and lowering the entry ticket to €1,000.

Non-professional investors can now participate alongside the bank and under the same terms by acquiring stock holdings in unlisted French and European enterprises.

Co-invest with Bpifrance

With a target size of €50M, the BEA1 fund will co-invest alongside Bpifrance (through one of its managed funds, the France Investissement VI fund) on comparable terms in 12 funds selected in accordance with predetermined criteria. 

The criteria include underlying funds with a maximum life of 12 years, a target size of at least €150M, and for which Bpifrance will commit a minimum unit amount of €20M.

Beginning on April 19, 2023, investors can subscribe to the BEA1 fund for a duration of 12 months. Development capital funds will make up at least 60 per cent of BEA1’s portfolio while venture capital and growth capital funds will make up a maximum of 40 per cent.

Aiming for a net annual return of about 8 per cent, BEA1 will be longer (10 years, extendable by two years) and riskier than the two prior funds (BE1 & BE2) due to the need to deploy capital and the need to build up the portfolio.

This return target is only a management goal and is not a promise. The BEA1 fund, in particular, carries a risk of capital loss, meaning investors might lose all or part of their investment without being able to take legal action against Bpifrance Investissement.

Brief about Bpifrance

Bpifrance is a public investment bank that supports companies from seed to stock market listing, from credit to equity. It provides finance or investment options tailored to each stage of a company’s development in each location.

The company claims to assist business owners on a long-term basis to foster their growth and competitiveness as a bank partner. Its goal is to promote the expansion of the French economy through fostering entrepreneurial success.

Bpifrance primarily assists SMEs, mid-caps, and big caps that are deemed crucial to the interests of France in terms of the national economy, the territories, or jobs.

“We offer a continuum of solutions adapted to every key step in a business’ growth such as: business creation, financing, guarantees or equity investment,” says the firm.

Bpifrance also conducts over 30 learning expeditions across the world each year to help companies find new markets and interact with experts, possible buyers, and investors.