FCPR: Investing in Unlisted Companies in France
Updated on 7 August 2026
An FCPR (Fonds Commun de Placement à Risques, a French venture-capital fund reserved for sophisticated investors) invests at least 50% of its assets in unlisted companies in France, through venture capital, growth capital or turnaround capital. In exchange for a risk of capital loss and limited liquidity, it offers favourable tax treatment after 5 years of holding.
- The FCPR lets you invest in a portfolio of unlisted companies, through venture-capital, growth-capital or turnaround-capital strategies.
- The entry ticket is generally high, which reserves the FCPR for sophisticated investors with substantial financial wealth.
- The risk of capital loss is significant and liquidity is very limited: units stay locked in for around 10 years.
- Capital gains are exempt from income tax after 5 years of holding (social security contributions of 18.6% still apply).
What is an FCPR?
The FCPR is a category of fonds commun de placement (FCP, France's open-end fund structure) whose workings differ mainly because of the nature of its underlying assets.
FCPR: definition
The fonds commun de placement à risque (FCPR) is an investment vehicle that pools capital to invest in a wide range of unlisted companies. Managed by an asset manager specialised in private equity, the FCPR lets you invest in the real economy, mainly in innovative companies, while offering greater diversification than investing directly and benefiting from the asset manager's expertise in this type of investment. It is a wealth management tool that a sophisticated investor, aware of the associated risks, may consider.
Because of its substantial capital, the FCPR can take stakes in many companies to dilute risk, with the gains from some offsetting the losses of others. Make no mistake though: on the risk scale, FCPR units are considered highly risky (carrying a higher risk level than investing in the stock market).
How does an FCPR work?
As with other FCP funds, when you subscribe to FCPR units, you are not buying the companies held by the fund directly: you only own a share of the fund. Indeed, the FCPR manages a portfolio of assets (made up of at least 50% unlisted securities), and it is the valuation of those assets that sets the value of the FCPR's units.
Your return then comes from several sources:
- any profits distributed by the fund
- the capital gain on the resale of the fund's units during the fund's life (not always easy in practice)
- a liquidation surplus when the FCPR is wound up (the most common case)
Because of the nature of the investment and the low liquidity of the underlying assets, an FCPR has a limited lifespan (around ten years), split into 4 main phases:
- Subscription and capital-raising phase: the fund is formed by opening its capital to institutional investors and individuals
- Investment phase: the asset manager responsible for the FCPR looks for eligible companies to invest in
- Pre-liquidation phase: the asset manager seeks to sell the stakes (potentially to other FCPRs) to realise the fund's assets. This is mainly when the FCPR finds out whether its investments have paid off financially
- Dissolution/liquidation phase: the realised assets are distributed to investors. If the amount distributed exceeds the initial investment, investors make a capital gain.
So the FCPR can be an option worth considering for those looking to invest €300,000.
What assets make up an FCPR?
Barring rare exceptions, an FCPR must hold at least 50% unlisted-company securities typically invested through venture capital, growth capital or turnaround capital. The remaining 50% can be invested freely, in particular to dilute risk.
The rules governing an FCPR's assets
Like any fonds commun de placement, the FCPR is subject to specific rules on the financial assets it may invest in (otherwise, it could not use this designation).
As a result, an FCPR's assets must consist of at least 50% securities (shares, partnership units…) that are unlisted. Under certain conditions, however, up to 20% of assets may consist of securities of small-cap listed companies. Small caps are companies with a market capitalisation below €150 million. In that case, only 30% of assets can be made up of unlisted companies.
The rest of the assets (the remaining 50%) may consist of current-account advances (maximum 15%) and any other type of financial asset, to dilute the fund's level of risk.
The 50% quota: the main forms of private equity practised by FCPRs
The private equity world is interested in every stage of a company's growth, from the young start-up to the SME with international ambitions. Depending on the stage the financed company has reached, the FCPR takes a more or less risky bet. It is thus possible to distinguish several forms of private equity depending on the stage the financed company is at:
- Venture capital, which funds new companies (start-ups) whose business model and product are still being tested. This type of investment inevitably carries a high risk since the failure rate among young companies remains structurally high, but given the low valuation of units at the time of investment, a single success can multiply the FCPR's original stake and offset the other unsuccessful investments.
- Growth capital, which aims to finance the growth and development of the company. In this case, the financed company has validated its business model and product, but is seeking capital to scale up its market rollout
- Turnaround capital (recovery), which consists of turning around a company in difficulty. Whether it is a "buy-out from receivership" (a company under receivership or in compulsory liquidation) or before the critical stage of insolvency proceedings, this type of investment carries a significant risk, but since the company already has a track record, it is theoretically easier upfront to assess its turnaround potential.
Of course, other types of investment are eligible for the FCPR provided the company is not listed on the stock market (with the small-cap exception).
FCPRs at Finary One
Finary One selects a range of FCPRs from the French market for its clients, prioritising fee transparency, manager quality and fit with your overall wealth allocation.
- Access to institutional FCPRs that are usually hard for an individual investor to reach, with negotiated entry and management fees on the selected vehicles.
- A dedicated private banker who checks that the selected FCPR fits your risk profile, time horizon and existing exposure to unlisted assets.
- Choice of wrapper for the FCPR (securities account, Luxembourg life insurance policy, PER (France's retirement savings plan)) based on your long-term tax and wealth objectives.
Learn more about Finary One → Reserved for investors with €500,000 or more in investable assets. Investing carries risks, including the risk of capital loss.
Investing in an FCPR: a risky investment?
Investing in an FCPR is a risky move: the risk of capital loss is significant and unit liquidity very limited, in exchange for favourable tax treatment beyond 5 years of holding. The FCPR is one way of investing in private equity, discover all the vehicles in our complete guide.
As we saw in our guide on "where to invest your money in France", returns should always be assessed relative to risk. The potential of an FCPR is therefore considerable, since some historical funds have delivered significant performance over 10 years, though no generalisation is possible. According to France Invest, private equity players invested €36.4 billion in 2,904 companies and infrastructure projects in France in 2025, a figure that illustrates the role FCPRs play in financing the real economy. Past performance is not indicative of future performance. The trade-off is a significant risk of loss and a lack of liquidity on the units.
Good to know : Except in the case of an apport-cession (a French tax-deferral scheme under article 150-0 B ter for reinvesting the proceeds of a company sale into a holding company), investing in an FCPR should generally remain a minority share of a financial portfolio, to be diversified with risk-free investments. Also, never forget to build up an emergency fund, especially when investing in illiquid assets such as FCPR units. What is the return on an FCPR?
The actual return on an FCPR is hard to know, since its assets mainly consist of companies whose securities are not listed. Moreover, fast-growing companies reinvest most of their profit (if any), which makes it hard to assess the value of the holdings using financial indicators such as the P/E ratio (price-earnings ratio). In practice, it is difficult to assess an FCPR's net asset value before it is wound up.
Nonetheless, the fund's life includes several events affecting the companies held, such as new funding rounds at a new subscription value, which serve as a reference point for a possible sale. It is therefore possible to value an FCPR's net asset value during its life on this basis.
The variance in an FCPR's return at liquidation is significant. Depending on the vintage year and the manager, observed performance varies widely, with some fund generations having recorded significant capital losses. Given that losses are rare on a sufficiently diversified stock-market investment over a long horizon, FCPRs can lose their appeal for those looking purely for performance with a low risk premium.
A non-zero risk of capital loss
The risk of capital loss is inherent to the FCPR. The underlying companies are often small structures that have not yet proven themselves, the flip side of high return potential. Overall, there is significant market risk on this type of asset, since at the pre-liquidation stage of the fund, buyers must be found for every company held.
While some companies are particularly sought-after and attractive, others will not sell, causing the fund to lose its entire initial investment in them. The aim is therefore for some unicorns in the portfolio to offset these losses.
Good to know : To assess an FCPR's viability, don't rely solely on the fund's marketing materials, read the KID (Key Information Document required under PRIIPs). Look closely at the asset composition and, above all, at the fees charged by the fund, since these will be higher than for traditional funds investing in listed shares. These fees will delight your wealth management advisor and will significantly affect your returns! The low liquidity of FCPR units
Exiting an FCPR before its term is no small matter. Indeed, regulations provide that FCPR unit holders cannot request redemption by the fund before a set period has elapsed (generally around 10 years). In other words, the FCPR cannot provide immediate liquidity.
That said, it is possible to find an over-the-counter buyer willing to purchase your units during the fund's life. Be careful though, as we'll see below, selling your units before 5 years forfeits the income-tax exemption.
What is the tax treatment of the fonds commun de placement à risque?
To offset investors' risk-taking and boost the appeal of funds that are essential to the country's economic development, the tax treatment of FCPRs is particularly favourable for investors. Indeed, from the 5th year, capital gains from reselling FCPR units and dividends distributed by the fund are exempt from income tax. Only social security contributions of 18.6% remain due, under France's Social Security Financing Act for 2026.
The tax treatment of FCPRs is similar to that of the PEA (a French tax-advantaged equity savings account). Depending on your situation, several wrappers may be considered (securities account, a holding company under an apport-cession, life insurance). The PEA is generally not suitable given its contribution cap. The choice of wrapper depends on your wealth and tax situation and is worth discussing with an adviser.
Good to know : FCPRs serve the real economy by providing funds to companies seeking capital. While investing in an FCPR is a risky bet, returns can come through under favourable tax conditions. Professionals sometimes mention a limited allocation of financial wealth to unlisted assets; the appropriate percentage depends on each investor's risk profile, horizon and objectives! Frequently asked questions
Which type of investor is the FCPR for?
FCPRs are mainly aimed at sophisticated investors with an affinity for entrepreneurship. Often used by former company executives because of the apport-cession mechanism, the FCPR remains open to anyone, since the selection of financed companies is handled by an asset manager specialised in private equity.
Can you exit an FCPR before the 10-year term?
Exiting an FCPR early is difficult: the fund's rules generally prohibit unit redemption before the term, often set at around ten years. It is sometimes possible to sell your units over the counter to a third party, but no immediate liquidity is guaranteed before the fund is wound up.
Which wrapper can hold an FCPR?
An FCPR can be held directly in a securities account, through a holding company under an apport-cession, or within a life insurance policy offering this type of unit-linked fund. The PEA is generally not suitable because of its contribution cap.
What are the fees on an FCPR?
FCPRs charge entry fees, annual management fees and sometimes performance fees, generally higher than those of a standard equity fund. The fund's Key Information Document (KID) details all these fees, which should be examined carefully before subscribing.
Sources
Autorité des marchés financiers (AMF): guide to private equity funds (FCPR, FCPI, FIP)
Code monétaire et financier (Légifrance), provisions on the asset composition of FCPRs
BOFiP, BOI-RPPM-RCM-40-30: tax regime for FCPR unit holders (article 163 quinquies B of the CGI)
France Invest, 2025 activity study of the French private equity industry
Regulatory disclaimers: Marketing communication. Investing carries a risk of partial or total capital loss. Past performance is not a reliable indicator of future performance. This article is provided for information and educational purposes only; it does not constitute personalised investment advice, a buy or sell recommendation, or tax advice. This investment carries a risk of illiquidity (resale is not guaranteed, long horizon) and a risk of capital loss. Income and valuations are not guaranteed. Before investing, read the Key Information Document (KID) and, where relevant, consult an authorised adviser. Finary SAS, an investment firm authorised by the ACPR (no. 19283), member of AMAFI. Insurance broker registered with ORIAS (no. 21001279), member of the CNCGP (association approved by the AMF). Crypto-Asset Service Provider (CASP) authorised by the AMF under the MiCA regime, references no. A2026-026 and no. N2026-008.
