AGF Croissance 2005
AGF Croissance 2005 is a simplified FCPI, or tax-incentived high-tech venture capital fund, designed for companies.
Objectives
This investment offers tax exemption and the prospect of long-term gain through access to the capital of innovative companies with high growth potential.
Individual French investors and investment funds subject to corporate taxation can benefit from a tax reduction equal to 25% of the sums invested between 16 March 2005 and 31 December 2005 as subscriptions for shares in the fund.
The closing date for subscriptions is 15 December 2005.
If you have any questions, do not hesitate to contact us by e-mail.
Fund presentation
According to the regulations governing their composition, FCPIs must be invested as follows:
- at least 60% in innovative companies:
The innovative nature of a company is judged according to its spending on research and development, or whether it has been approved by Oseo-ANVAR (the French research and innovation association).
The company must also satisfy a number of criteria:
- fewer than 2000 employees
- majority of capital held by individual investors or investment funds
the remainder (up to 40%) is invested at the discretion of the management company
For AGF Croissance 2005, the remainder will be distributed in an even balance between share, bond, money market and alternative investments and will be invested through French mutual funds approved by the AMF (the French financial markets authority).
Investment sectors
The primary sectors for investment will be Information Technology and Life Sciences.
AGF Private Equity will invest in companies that have the potential to become European or world leaders due to their capacity to innovate. Investment opportunities are chosen on the basis of an analysis of key factors for success such as: technological level (disruptive technology, solid intellectual property), the experience of the management team and environmental factors (competition, growth in the market).
The investments will concern European companies, with a high proportion being made in companies based in France. The proportion of investments in French companies should be approximately 75%, but will not be fixed and will depend on investment opportunities.
Investment strategy
The investments will be made in companies at different stages of development:
· Maturer companies that are already profitable and are seeking funds to take advantage of new growth opportunities (development capital).
· First rounds of venture capital funding, obtaining low-input holdings and significant capital share in order to maximise return on investment.
This approach will provide AGF Croissance 2005 with optimal diversification of its shareholdings for the best risk to yield ratio.
Between 1.5 and 6 million euros will be invested in each company in the first funding round, rising to up to 10 million euros following further rounds. The average shareholding duration is about 5 years.
Investments in French companies will represent about 75%, with the balance being invested in European companies. This distribution (75/25) will not be fixed, and will depend on investment opportunities.
AGF Croissance 2005 in brief:
| Original value | 100,000 euros | | Subscription period | 15 December 2005 | | Management fee | 2% excluding tax per year of net assets | | Minimum investment | 100,000 euros | | Subscription possible via |
Montpensier Finance | | Duration | 8 years | | Redemption | Possible from 01/04/2014 | | Tax reduction | Tax reduction equal to 25% of the investment |
This document does not constitute the regulatory specifications required by the AMF
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