Siparex launches €20m FCPI fund

Alice Tchernookova
31 October 2016

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Siparex Group, which merged with XAnge Private Equity in 2015, has launched the eighth generation of its FCPI fund, FCPI Siparex XAnge Innovation 2017, with a €20m target.

The fund has no official hard-cap, according to the GP, and will hold a final closing by the end of 2016.

FCPI-type funds in France enable private investors to benefit from a reduction on their income tax amounting to 18% of their investment in the fund, capped at €12,000 for a single person and €24,000 for couples.

The fund has a seven-year lifespan with a three-year extension period. In compliance with French legislation, investors can receive returns after a minimum investment period of five years. During those five years, the fund has to remain invested at a minimum of 70%.

FCPI Siparex XAnge Innovation 2017 is the eighth fund of its kind, and the second since XAnge and Siparex merged in 2015. The fund's last generation received €18.5m in commitments. Innovation 2004 had registered a 13% return on investment, and the 2005 one 44%.

All investors in the fund are private individuals, investing via French banks La Banque Postale and Caisse d'Epargne, who are acting as placement agents for Siparex for the fundraise.

The minimum subscription for private investors is €500, or 4% of the fund. According to the GP, the average subscription amounts to €4,500, with around 4,500 in total.

The fund will be deployed in around 15 French SMEs, in the information technology sector for the most part. The investment period in a business will be around 30 months.

Investment tickets will generally amount to €1m or slightly more.