FRANCE Trends and Developments Contributed by: Rima Maitrehenry, Racine
investments made by this entity in companies eligible for that same quota. The Ordinance per - mits inclusion in the 50% investment quota of the percentage of indirect investments made by such entities. This greater flexibility would facili - tate the creation of funds of funds dedicated to retail investors. The 50% investment quota must be complied with by no later than the end of the financial year following the financial year during which the FCPR was set up, and until the end of the FCPR’s fifth financial year. The Ordinance intro - duced a derogation applicable to FCPR that benefit from the ELTIF label; the date by which such quota must be complied with will be the one set forth in the ELTIF Regulation.
In conclusion, the Green Industry Act marks a pivotal step in France’s commitment to achieving sustainable industrial growth, while addressing the challenges of climate change. By combin - ing robust financial incentives, targeted support for innovation and frameworks to attract private investment, the Act seeks to position France as a leader in the global green economy. The Act presents significant opportunities for private equity fund managers, positioning them as key players in driving the green transition. Fund man - agers can leverage these advantages to diversify portfolios and capitalise on the growing demand for green investments from life insurance com - panies and retirement savings institutions. As its measures take effect, the Act promises to drive the transformation of French-based investment funds towards more attractive investment offer - ings.
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