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Find out more about FPCI (Fonds Professionnel de Capital Investissement)

Definition and explanation

20/4/2024
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2
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The Fonds Professionnel de Capital Investissement (FPCI) is an investment vehicle that enables professional investors, including investment managers, corporations and private funds, to invest in companies with high growth potential.

The FPCI is generally managed by a management company, which is responsible for investing capital raised from investors with specific objectives. It is designed to increase the value of the companies in which it invests, helping them to grow and achieve their strategic objectives.

FPCIs are generally structured in two main ways: dividend-increasing shares and venture capital units.
Dividend-increasing shares offer investors a fixed return over a period of time, while venture capital units are the main instrument used to realize long-term gains. FPCI can also invest in established companies in difficulty, to help them turn around.

FPCI enables investors to diversify their portfolios, offering direct exposure to the private equity market and the potential for long-term returns. Investors can also benefit from favorable tax treatment, which can be an advantage when diversifying their portfolios.

Finally, the FPCI is regulated by the Commission des Opérations de Bourse, making it a safe and reliable investment. It also offers a governance framework and investor protection protocols, making it safer and more attractive to investors.

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