The FCPR, short for fonds commun de placement à risques, is the historical entry point for French retail savers into private equity. Created in 1983, this vehicle pools the savings of many subscribers and invests them mostly in unlisted companies. It combines three features that must be accepted together before subscribing: a return potential tied to the growth of SMEs and mid-sized companies, money locked up for several years, and a tax benefit on exit rather than on entry.
What is an FCPR: definition and regulatory framework
A fonds commun de placement à risques is a collective investment undertaking governed by the French Monetary and Financial Code (articles L214-28 and following). It has no legal personality: it is a co-ownership of securities, run by a management company approved by the AMF, the French financial markets authority, which makes investment and exit decisions on behalf of unit holders.
What sets an FCPR apart from a standard fund is its investment quota. At least 50% of its assets must be invested in securities of unlisted companies: shares, convertible bonds, participating securities. Small listed companies with a market capitalisation below 150 million euros can count towards this quota, up to 20% of assets. The rest is usually held in more liquid assets to cover fees and capital calls.
The FCPR belongs to the private equity family. For an overview of this asset class and its strategies, the guide on how to invest in private equity as a retail saver details the different segments, from venture capital to buyouts.
How a French private equity fund works
The life of an FCPR follows a four-stage cycle, which explains both its return potential and its low liquidity.
The fund’s life cycle
| Phase | Indicative length | What happens |
|---|---|---|
| Subscription | A few months | The fund raises money during a period set by its rules |
| Investment | 3 to 5 years | The management company selects and buys holdings |
| Value creation | Several years | Portfolio companies are supported to grow and gain value |
| Divestment and liquidation | 2 to 4 years | Holdings are sold and proceeds are distributed to unit holders |
In total, a classic FCPR lasts 8 to 10 years, with one or two one-year extensions often provided for in the rules. During that time, redemptions are generally blocked, except in exceptional cases listed in the fund rules (death, disability, dismissal in particular).
Net asset value, an indicator to read with care
Unit value is calculated periodically, often every six months or every quarter, based on the valuation of the holdings. For unlisted companies, this valuation relies on estimation methods rather than a daily market price. In the early years, net asset value often falls because of fees, before rising again as holdings are sold: this is the well-known J-curve of private equity.
FCPR, FCPI, FIP, FPCI: the differences to know
The FCPR is the generic category. Several variants exist, with different audiences, quotas and tax benefits.
| Vehicle | Audience | Investment target | Main tax benefit |
|---|---|---|---|
| FCPR | All savers | At least 50% unlisted, all sectors | Income tax exemption on exit after 5 years |
| FCPI | All savers | Innovative SMEs, stricter quota | Income tax reduction on entry, under conditions |
| FIP | All savers | Regional SMEs, limited geographic area | Income tax reduction on entry, under conditions |
| FPCI | Experienced investors | Unlisted, more flexible management rules | Exemption on exit under conditions close to the FCPR |
The FPCI deserves particular attention. Reserved for experienced investors, with an entry ticket generally set at 100,000 euros for a direct subscription, it gives access to larger, often institutional funds. Platforms such as Fundora pool the subscriptions of several retail investors within an FPCI and then a dedicated SPV, which sharply lowers the entry threshold compared with a direct subscription. Management is carried out under mandate by an AMF-approved management company. The overview of private equity platforms for retail investors compares these access routes.
FCPR taxation in 2026
This is often the most misunderstood point. An FCPR gives no tax reduction on subscription, unlike FCPIs and FIPs. Its tax benefit comes on exit, provided the investor subscribes to a so-called tax FCPR, meaning a fund that meets stricter quotas.
Conditions for the exemption
For a French tax resident to be exempt from income tax on distributions and capital gains, three conditions must be met:
- hold the units for at least 5 years from subscription;
- immediately reinvest in the fund any amounts distributed during those 5 years, which remain locked for the same period;
- not hold, together with one’s spouse, ascendants or descendants, more than 25% of the rights to the profits of a portfolio company.
What remains due
The exemption only covers income tax. Social levies remain due on gains. Since the 2026 Social Security Financing Act, their rate has risen from 17.2% to 18.6% on most capital income held directly. Life insurance income remains subject to the 17.2% rate.
If the conditions are not met, for example when units are sold before 5 years, gains are taxed under the standard regime for capital gains on securities: the flat tax, raised to 31.4% in 2026 for income affected by the CSG increase, or the progressive income tax scale on option.
How to invest in an FCPR
Three main routes allow a retail saver to buy FCPR units. They differ in ticket size, fees and liquidity.
Directly, through a distributor
Subscription is made through a bank, a wealth adviser or directly with the management company, during the fund’s marketing period. The entry ticket varies by fund, often in the range of a few thousand euros. This is the only route that gives access to the FCPR’s own tax regime described above.
Through life insurance or a PER
Many contracts list FCPRs as unit-linked supports. The entry ticket often comes down to a few hundred euros, and the insurer organises partial liquidity, under conditions. The applicable tax regime is then that of the wrapper, not that of the FCPR. The contract’s fees must also be added to the fund’s fees. The choice between euro funds and unit-linked supports determines how much room an FCPR can take in a contract.
Through evergreen funds
A more recent generation of unlisted funds, called evergreen or semi-liquid, has no fixed end date. They reinvest continuously and offer periodic redemption windows. This liquidity remains limited: redemptions can be capped or suspended if requests are too numerous.
Benefits and risks of an FCPR
What an FCPR brings
- Access to unlisted companies: an asset class long reserved for institutions, which represents a large share of the real economy.
- Diversification: unlisted performance does not track listed markets day by day. The comparison private equity vs stock market explains what this difference means for a saver.
- Professional management: selecting, monitoring and selling holdings is entrusted to a specialist team.
- Favourable tax treatment on exit, for tax FCPRs held for at least 5 years.
What must be accepted
- A risk of capital loss, partial or total, clearly stated by the AMF.
- Very low liquidity: money is tied up for 8 to 10 years, sometimes longer.
- High fees: entry fees, annual management fees and carried interest add up. They must be read in the key information document and the fund rules.
- A wide dispersion of returns between funds and vintages. The choice of management company matters more than in listed management.
What to check before subscribing
Before signing, a few simple checks avoid most bad surprises:
- The management company’s approval, available on the AMF website, and its track record on previous funds.
- The fund’s strategy: venture capital, growth, buyout, secondaries. The level of risk is not the same.
- The exact lock-up period and the extension options provided for in the rules.
- The full breakdown of fees, over the fund’s whole life and not just the first year.
- The weight of the FCPR in one’s wealth: a diversification pocket, sized so that the money is not needed for 10 years.
The FCPR naturally fits into a strategy of diversifying across asset classes, alongside more liquid investments. It rewards patience more than timing.
Frequently asked questions
What is an FCPR, in one sentence?
An FCPR, or fonds commun de placement à risques, is an AMF-approved French fund that invests at least 50% of its assets in companies that are not listed on a stock exchange. It lets a retail saver access private equity without picking the companies, in exchange for money locked up for several years.
Does an FCPR give a tax reduction?
Not on entry. Unlike FCPIs and FIPs, subscribing to an FCPR does not trigger any income tax reduction. The tax benefit comes on exit: if the units are held for at least five years and income is reinvested, capital gains and distributions are exempt from income tax. Social levies remain due.
How long is the money locked up in an FCPR?
A classic FCPR usually lasts 8 to 10 years, and the fund rules often allow one or two one-year extensions. Redemptions are generally blocked for the whole period, except in exceptional cases listed in the rules such as death, disability or dismissal. FCPRs held through life insurance or so-called evergreen funds offer partial liquidity, never guaranteed.
What is the difference between an FCPR and an FPCI?
The FCPR is open to all savers, with investment and disclosure rules supervised by the AMF. The FPCI, a professional private equity fund, is reserved for experienced investors, with an entry ticket generally set at 100,000 euros for a direct subscription. In return, the FPCI benefits from more flexible management rules. Some platforms pool retail subscriptions to give access to it.
Can you lose money with an FCPR?
Yes. Capital is not guaranteed and the loss can be partial or total if the portfolio companies fail. Performance depends on the quality of the management company, the fund’s vintage and the price at which holdings are sold. An FCPR should remain a diversification pocket, sized to one’s wealth and investment horizon.