Private Equity Selection Individuals No.1

01 April 2001

Tweet
Facebook
LinkedIn
Google plus
Send to

A first and final closing has been held on the Private Equity Selection Individuals No.1 fund-of-funds, an investment vehicle launched by CPR Bank and lÂ’Union dÂ’Etudes and Investissements (UI), and managed by CPR Private Equity. The fund was originally launched in parallel with the Private Equity Selection No.1 fund-of-funds, which targets institutions. The individuals fund-of-funds closed on Euro 25m; investment in the vehicle was 95% French, with the balance coming from other European individuals. The individuals fund is remarkable in that it is the first fund-of-funds that is subject to French legislation, previously only applied to direct investment vehicles, that exempts individual investors from certain tax burdens.

The overall target for the two funds-of-funds is Euro 100m. The Private Equity Selection No.1 fund-of-funds has raised around Euro 50m to date, and is looking at a first closing this month, with a final close anticipated in six months time.

Investment in the institutional fund has been primarily supplied internally, from CPR Bank and UI, but there has been some external fundraising, 85% of which has been from French banks and insurance companies. Jean Daumet, Xavier Caron and FranÃ§ois Desprez are coordinating the fundraising efforts and are being advised by HervÃ© Hamon. The structure of the institutional fund-of-funds is a ten-year French FCPR, with a 1.5% fee until 2003 (at which time it shall be reduced to 0.75%) and a carry of 10% of capital gain after an 8% hurdle.

The investment focus of the two vehicles will be 50% into buyout funds, 25% into venture capital funds and 25% into other European ventures, such as telecommunications funds; 80% of the fund is earmarked for Europe and the balance will be invested in US ventures.

CPR Bank has invested in eight funds since 1998, and these investments will be transferred to the twin fund-of-funds following their final closings. It is hoped that a portfolio of around 20 fund investments will be achieved by 2002/3.