FRANCE Law and Practice Contributed by: Rima Maitrehenry, Fabrice Rymarz, Charles-Xavier Vincenti and Stein Mpassi Loufouma, Racine
vice providers managing third-party mandates. Professional investors also include sovereign funds (or equivalent) as well as development finance institutions. Certain per se AIFs are more attractive to French private and/or corporate investors because of certain tax incentives attached to them. For 2023, according to France Invest, the break - down of fundraising by type of investor was as follows: • funds of funds/other asset managers, 27%; • individuals/family offices, 23%; • insurance companies/mutual insurers, 13%; • banks, 8%; In H1 2024, funds of funds/other asset manag - ers and insurance companies/mutual insurers increased their commitments (+61% and +31% respectively compared to H1 2023). Individuals and family offices reduced their allocations, but remain the second largest category of subscrib - ers (20% of commitments) (see France Invest & Grant Thornton, Activité du capital-investisse- ment français au 1er semestre 2024 and Activité du capital-investissement français en 2023 ). 2.2.2 Legal Structures Used by Fund Managers See 2.1.1 Fund Structures . 2.2.3 Restrictions on Investors No specific restrictions are provided for French AIFs open to retail investors. However, the AIFM managing such funds must have an AMF pre- • pension funds, 8%; • public sector, 8%; • industrials, 6%; and • sovereign funds, 6%.
approved programme of operations dedicated to retail investors. Per se AIFs dedicated to professional investors may only be invested in by: • the fund manager, its directors and employ - ees; • professional clients as defined under MiFID; • retail clients whose commitments in such AIF are at least equal to EUR100,000; and • retail clients investing through an investment services provider in the context of a discre - tionary portfolio management mandate. Certain per se AIFs dedicated to professional investors may benefit from additional exemp - tions permitting them to attract non-professional investors: • FPCI, OFS and FPS could, under certain conditions, be invested in by natural persons and legal entities, whose initial subscription is equal to EUR30,000; • SLP could be invested in by individuals or legal entities rendering services to the AIFM; and • FPCI, OFS, FPS and SLP benefiting from the ELTIF label could be invested in by retail investors. 2.3 Regulatory Environment 2.3.1 Regulatory Regime As already indicated (see 2.1.1 Types of Inves- tors in Alternative Funds ), per se AIFs and Other AIFs must be managed by a portfolio manage - ment company regulated by the AMF, or must otherwise be authorised to operate in France as an AIFM. Other AIFs are not subject to any particular investment limitations other than those contrac -
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