Find out what a FCPR is and how it works

A venture capital fund (FCPR ) is a type of investment fund managed by a professional fund manager. It is generally aimed at institutional or high-net-worth investors seeking to diversify their portfolios beyond equities and bonds. FCPRs aim to invest in unlisted, generally risky companies, and can offer investors potentially attractive returns.

A FCPR is managed by a management company registered with the financial regulators, and is generally made up of a selection of different asset classes. These assets may include equities, bonds, real estate investments, commodities or derivatives.

A FCPR is often structured around a subscription period, during which investors subscribe for units in the fund. The size of a FCPR can vary considerably, but typical sizes range from a few million to several billion euros.

A FCPR is a risky type of investment that can be beneficial, but it can also involve significant risks. Indeed, since FCPRs are made up of various asset classes, risks are concentrated. What's more, since FCPRs are invested in unlisted assets, investors can suffer from illiquidity and capital losses.