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03 October 2011

IPE: France's CDC seeks to launch private equity fund, targets pension investment

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Caisse des Dépôts et Consignations is seeking to launch a new private equity fund, hoping to secure funding from local institutional investors at a time when the country's small and medium-sized enterprises are suffering from lack of investment.

The private equity vehicle, which has already seen interest from pension funds, would aim to help French SMEs to find new sources of investments, with the 2008 financial crisis and Solvency II seen as the two main reasons why institutional investors have walked away from the asset class over the last few years. Additionally, the smaller size of France's pension fund market compared to other European countries means the opportunity for the new private equity vehicle to secure investments from local institutional investors is restricted.

As a result, several private equity players as well as pension plans, such as UMR Corem, are now asking the government to help create new pension funds and encourage them to invest in the asset class.

Full article (IPE subscription required)

© IPE International Publishers Ltd.

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