BPI France launches €100m tourism-dedicated fund

Launched on 8 October, France Investissement Tourisme has already raised €50m towards its €100m target.

According to BPI France, the vehicle seeks to tap into the potential of French tourism businesses – an industry which, in spite of France's position as the world's most popular destination, lags behind some of its peers in terms of revenue output, according to the investor. The sector currently makes up 15% of BPI France's direct investments programme, with an average of 10 SMEs backed by its funds every year.

Over the summer, unquote" has witnessed a fair share of private equity-backed activity in the sector in France, particularly in the Paris region. In late June, LBO France divested operator Cityvision, with a first partial sell-off involving OpenTour's brands SLT and SELT, sold to corporate RATP. This was followed by the exit of the Cityvision and La Marina de Bercy subsidiaries to Ekkio Capital.

Investors
Aside from capital provided by BPI France itself, France Investissement Tourisme is open to commitments from third-party individual investors from the tourism industry.

Investments
France Investissement Tourisme will invest €500,000-5m tickets in return for minority stakes in French tourism and leisure SMEs. Segments such as hospitality, restaurants, leisure infrastructure operators and support service providers to the tourism sector will be prioritised.

The fund will seek companies at all business stages except inception. Its maiden deal was announced on 27 October, when youth hostel network France Hostels welcomed BPI France as minority shareholder after a €500,000 injection by the firm.

People
France Investissement Tourisme will be managed by France Investissement Régions, BPI France's SME-focused arm. The team will be led by director Serge Mesguich.

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