FIP
New "FIP Energies Nouvelles" to be launched in 2007!
FIP Energies Nouvelles II, advised by Eolfi, was approved by the AMF (French stock market authority) on 17 July 2007, under number: FNS 2007 003. This fund will invest mainly in the following French regions: Centre, Pays de la Loire and Poitou-Charentes. You can subscribe for units now with approved distributors.
For further information, contact us at: contact@eolfi.com
A local investment fund (FIP) enables private individuals and legal entities to invest in non-listed SMEs under advantageous tax conditions. The FIP is created for a period of 8 years by an asset management firm approved by the AMF and a custodian
In an FIP, unit holders must comply with regulated quotas:
- Maximum of 10% per natural person (or his/her family)
- Maximum of 20% per investor (legal entity)
- Maximum of 10% per public legal entity
- Maximum of 30% for all public legal entities put together.
Savers benefit from two tax advantages:
- Investors who are natural persons can benefit from an income tax reduction equal to 25% of their investment in an FIP, up to a maximum investment of €24,000 for a married couple or €12,000 for a single person.
- Unit holders who are natural persons and have held the units for five years are totally exempt from capital gains tax, except for social contributions (currently 11%).
The assets must be invested as follows:
- Least 60% in SMEs, including 10% in companies with less than five years of existence, mainly active in the geographical area where the FIP is operational.
- Maximum of 10% per investment.
- Maximum contribution to current account set at 15%, and only with issuers more than 5% held.
Each investment must not exceed 35% of total voting rights or capital per company.
An FIP can only invest in existing SMEs, i.e. companies with a workforce of less than 250 people or turnover of less than €50 million or a balance sheet total not exceeding €43 million, located on a territory where the FIP will be operating. They must:
- be liable for corporate tax under common law conditions,
- have their registered office in an EU Member State,
- operate their business in the territory defined by the FIP (or at least have their registered office there),
- not have as their sole purpose the holding of financial investments.
Eolfi took part in the set-up of the first "new energy" FIP (FIP "Energies Nouvelles") managed by the asset management firm 123Venture, which completed its fund raising on 31 March 2007, having collected over €34 M in less than six months, through the Banque Populaire and Omnium Finance networks.
For further information, contact us at: contact@eolfi.com