The Banque publique d'investissement (BPI), building on the success of the first fund launched in September 2020, is at it again with "Entreprises 2", a fund designed to encourage private individuals to invest in SMEs and startups, most of which are not listed on the stock market. The entry ticket is set at 3,000 euros.
A portfolio of 1,500 companies
On Wednesday February 16, Bpifrance launched " Entreprises 2 ", its second investment fund following "Entreprises 1", which was set up at the end of 2020. This new fund is intended to be open to the widest possible audience: individual investors will be able to benefit from a lower entry ticket, i.e. 3,000 euros instead of the 5,000 euros required for the first investment fund.
In a press release, Bpifrance points out that the entry ticket for professional investors, for whom this type of " private equity product " is generally reserved, is usually a minimum of 100,000 euros.
In addition, " the portfolio is open to two funds managed directly by Bpifrance ", whereas "Entreprises 1" only included partner funds. These two funds account for 20% of asset contributions, and the portfolio comprises a total of 1,500 companies. For the most part, these are French companies not listed on the stock market.
An investment with measured risk
Once individuals have invested, their money is locked in for a minimum of 6 years. They can expect a return of between 5% and 7% a year.
Although the Banque Publique d'Investissement acknowledges that there is a possibility of losing some of its capital, it is nevertheless reassuring: with a portfolio of 1,500 companies and an entry ticket of 3,000 euros , private investors end up investing just 2 euros in each company, which considerably reduces the risk.
Individuals can invest online on the dedicated platform. As Bpifrance has a number of financial partners, they can also choose to invest through their bank, insurance company or asset management advisor.
In all, the "Entreprises 2" fund gives retail investors access to " 126 private equity funds managed by 76 private equity managers ".
The Public Bank provides investors with two fund reports a year for the duration of their commitment: an annual report and a semi-annual report. The first semi-annual report is scheduled for the end of August 2022.
" The portfolio of the Bpifrance Entreprises 2 fund is built up from the outset," stresses the public bank, " offering a shorter maturity horizon than a fund that builds up its portfolio as the investment period progresses.
Of the 1,500 companies in the portfolio, 70% are French. Among them is Lydia, a French unicorn specializing in mobile payments, but the detailed list will only be available to investors.
If this new fund proves as successful as its predecessor, Bpifrance intends to repeat the operation every year, and hopes that other institutional players will follow suit.