French unlisted investors, the most active in Europe by the number of companies supported, raised nearly 19 billion euros last year.
In the midst of Brexit, French funds score points against London. Last year, they raised 18.7 billion euros, which represents an increase of 13% compared to 2017. Tricolor investors of the unlisted have almost doubled their means in three years, approaching l ‘goal they set for themselves in 2016. “In terms of the number of companies invested, French funds are the most active in Europe, with more than 2,200 companies supported”, said Dominique Gaillard, President of France Invest.
A title that the French are not ready to give up. This number, double that posted by British funds, has been driven for three years by the rapid rise of French Tech. In 2016, the association said it wanted to seek first place in private equity ahead of London in Europe.
The influence of the tricolor funds extends in the Union. Of the 14.7 billion euros invested last year, the share deployed in European or foreign companies grew from 19 to 25%. In Europe, the amounts have doubled to more than 3 billion euros. “This is very good news, as the Union is agitated by Brexit and other disruptions”, launched Dominique Gaillard.
End of tax benefits
At a time when Bruno Le Maire has decided to make “patriotic” savings his priority, French funds are highlighting their hold on the French economy. In 2018 alone, they invested more than 11 billion euros, or 75% of their capital, in the French economic fabric, from start-ups to heavyweights in the industry.
Individual investors are now ready to invest without a net in the unlisted, underlined Dominique Gaillard. With the disappearance of the ISF, more than 430 million euros invested in 2017 by individuals and large fortunes have left vehicles offering a tax advantage (FCPI and FIP). And they redeployed that capital into traditional tech funds.
“There is a fundamental movement of investors towards the real economy without tax advantage to the key, therefore on very healthy bases”, welcomed the president of France Invest, which mobilizes private banks and insurers to welcome more and more unlisted French in savings products.