Private Investment Funds: New Developments in France

The fonds commun de placement à risques (FCPR) is the investment vehicle most commonly used in France for organizing a private equity fund. A specific type of FCPR, the FCPR allégé (FCPR Allégé), is used when the fund is reserved for “qualified investors” (i.e., certain sophisticated, institutional, or high-net-worth investors), as defined in the French Monetary and Financial Code. Although subject to less regulatory oversight, the FCPR Allégé must nevertheless be managed by a management company authorized by the French regulator, the Autorité des marchés financiers (the AMF), to render portfolio management services.

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