By Benjamin Roure L'Hermitte
Private equity, capital-investissement in French, means investing in companies that are not listed on a stock exchange: start-ups, fast-growing SMEs, businesses bought out and transformed. Long reserved for institutions and the wealthy, it is opening up to individuals in France through funds approved by the AMF, the French market regulator, European ELTIFs and unit-linked assurance vie funds. It promises high returns; above all, it requires locking up your money for years, with high fees and a risk of losing capital. This guide, written for residents of France, explains what private equity is, how it works and how to invest with your eyes open.
- Definition: investing in the equity of unlisted companies, supporting them for several years, then selling the stake.
- €36.4 billion invested in France in 2025 in 2,904 companies and infrastructure projects, according to France Invest.
- For individuals: FCPR, FCPI and FIP funds, ELTIFs, unit-linked assurance vie funds, or directly as a business angel or through crowdfunding.
- The trade-offs: money locked up for 5 to 10 years or more, fees of 2.4% to 3.5% a year according to the AMF, and a risk of capital loss.
Private equity finances much of the economy you never see on the stock market: the start-up raising its first millions, the family SME changing hands, the manufacturer expanding abroad. Funds bring capital but also support: a board seat, a network, a strategy. They then sell, hoping for a gain.
This guide defines private equity and its segments, gives figures for the French market, explains how a fund works, then reviews the ways individuals can invest and the risks the AMF points out. Figures come from France Invest's 2025 activity study and the AMF (in French).
TL;DRPrivate equity means investing in unlisted companies to support them and then sell. In France, €36.4 billion was invested in 2025 in 2,904 companies and projects. Individuals can access it through approved funds (FCPR, FCPI, FIP), ELTIFs, unit-linked assurance vie funds or directly (business angels, crowdfunding). In exchange: a 5 to 10-year horizon or longer, a difficult early exit, high fees and possible capital loss. According to the AMF, living FIP and FCPI funds showed negative median returns at the end of 2023.
Private equity: definition
Private equity is equity investment in unlisted companies. “Private” does not mean secret: it means not traded on a public market, as opposed to listed shares. In France the term capital-investissement covers everything from an individual's cheque to a start-up to a large fund's buyout of a mid-sized company.
The principle is always the same: an investor takes a stake in a company, helps it grow for several years, then sells, to a trade buyer, another fund or through a stock market listing. The gain comes from the sale, rarely from dividends along the way. Until the sale, the investment's value is an estimate, revised periodically by the manager.
The segments of private equity
Private equity is divided according to the maturity of the company financed:
| Segment | Target companies | Risk |
|---|---|---|
| Venture capital | Start-ups, from seed to the first large rounds | Highest: many failures, a few big successes |
| Growth capital | Companies already profitable or close to it, growing fast | High |
| Development capital | SMEs and mid-sized firms financing a project: a plant, exports, an acquisition | Moderate to high |
| Buyout (LBO) | Mature companies bought partly with debt, often when the founder steps down | Moderate, increased by leverage |
| Turnaround | Companies in difficulty to be restructured | High |
Alongside, infrastructure funds finance long-term assets such as wind farms, networks and transport, and private debt funds lend to companies instead of buying equity. Both are often grouped with private equity under the label “unlisted”.
The French market in figures
According to the activity study by France Invest and Grant Thornton published on March 25, 2026, French private equity firms invested €36.4 billion in 2025, down 1%, in 2,904 companies and infrastructure projects. They raised €42.9 billion from investors, up 10%, and sold €14.0 billion of holdings at historical cost. Excluding infrastructure, investment rose 11%, driven by continuation funds, which let a manager keep a company longer by moving it from one of its funds to another.
France Invest, the industry association, has more than 460 member management companies. Its release also notes the current weak point: exits remain insufficient, which lengthens the time investors' money stays tied up.
How a private equity fund works
A private equity fund has a set lifespan, often eight to ten years, which can be extended. It raises money during a subscription period, invests it in fifteen to a few dozen companies in the first years, then sells its holdings and returns money as exits happen. In the early years the fund's value often falls, while fees weigh and the companies develop: this is the “J-curve”.
The manager earns two things: annual management fees, charged whatever happens, and a share of gains above a performance hurdle, called carried interest. According to the AMF study published on January 13, 2025, funds sold to individuals cost on average 3.5% a year for FIPs, 3.2% for FCPIs and 2.4% to 2.7% for other funds, excluding distribution costs such as assurance vie contract fees.
How individuals can invest in private equity in France
There are several entry points, from retail funds to direct investment:
| Vehicle | Access | Liquidity |
|---|---|---|
| FCPR, FCPI, FIP | AMF-approved funds open to individuals, often from a few thousand euros | Money usually locked for 5 to 10 years, sometimes longer |
| ELTIF | European long-term investment fund, open to individuals with no minimum since January 10, 2024 | Depends on the fund: locked until maturity or limited periodic redemptions |
| Unit-linked assurance vie or PER funds | Private equity funds offered in some contracts, sometimes in managed portfolios | Depends on the fund and contract terms |
| Evergreen FCPRs (semi-liquid) | Funds with no end date that invest continuously | Redemptions possible but capped, and suspended in difficult times |
| Professional funds (FPCI) | Reserved for experienced investors, usually with a €100,000 ticket | Locked until the fund ends |
| Direct investment | Business angels, investor networks, approved crowdfunding platforms | None until a sale or a listing |
Before subscribing, the AMF recommends reading the key information document (KID): strategy, lock-up period, fees, risks. The tax benefits attached to some funds (FCPI, FIP) and to direct investment in SMEs have been changed several times since 2025: the applicable regime depends on the date of the investment, and should be checked in the KID and in that year's tax return notice.
Investing in a start-up: where to start
For a beginner, investing directly in a start-up is the riskiest form of private equity. A young company can fail and the investor lose the whole stake; another can succeed without early shareholders being able to sell for many years. Three routes are common:
- Business angel networks: individuals who invest together, review deals jointly and share experience.
- Equity crowdfunding platforms approved by the AMF as European crowdfunding service providers: they present projects and allow small amounts.
- Venture capital funds open to individuals, which spread money across dozens of companies instead of one.
Whatever the route, diversification matters more than picking a gem: a few successes must make up for many failures. And the money invested should not be money you will need in the next ten years.
The risks the AMF points out
- Capital loss: an unlisted company can go bankrupt, and a fund can return less than was invested.
- Illiquidity: there is no market to sell units every day; an early exit is difficult or impossible.
- Valuation: until holdings are sold, their value is the manager's estimate.
- Fees: high fees sharply reduce net performance.
- Duration: the AMF ombudsman has reported FCPI funds whose lock-up lasted well beyond the announced term.
Past results call for caution. The AMF study of January 13, 2025, the first of its scope on the French market, found that at December 31, 2023 the median internal rate of return of living funds was −2.4% for FIPs and −1.1% for FCPIs, and 5% for evergreen FCPRs, whose track record is short. It also notes that fund returns flatten as liquidation approaches, which may reflect difficulties in selling assets.
Private equity is therefore best seen as a small part of a well-built portfolio: emergency savings in place, diversified liquid investments, a long horizon. The guide on where to put your money in France covers these steps, and the hedge fund guide another family of alternative investments.
Private equity: the key points
- Private equity invests in unlisted companies to support them and then sell.
- The French market invested €36.4 billion in 2025 in 2,904 companies and projects.
- Individuals can access it through approved funds, ELTIFs, assurance vie or directly.
- Money is locked up for years, with high fees and a risk of capital loss.
- Read the KID and invest only a small part of an already diversified portfolio.
This guide is educational and is not personalized investment advice. Private equity carries a risk of capital loss and illiquidity.
Frequently asked questions
What is private equity?
Investment in the equity of companies not listed on a stock exchange, called capital-investissement in French. The fund or investor takes a stake, supports the company for several years, then sells.
What is the difference between private equity and venture capital?
Venture capital is one segment of private equity: it finances start-ups. Private equity also covers growth and development capital, buyouts (LBOs) and turnarounds.
How can I invest in private equity in France?
Through AMF-approved funds (FCPR, FCPI, FIP), ELTIFs, unit-linked assurance vie or PER funds, semi-liquid funds, or directly as a business angel or via an approved crowdfunding platform.
How long is the money locked up?
Usually 5 to 10 years for a fund, sometimes longer, and until the company is sold for a direct investment. Semi-liquid funds allow redemptions, but capped.
Is private equity profitable?
Results vary widely from fund to fund. According to the AMF, at December 31, 2023 the median internal rate of return of living FIPs was −2.4% and that of FCPIs −1.1%, after fees of 3.2% to 3.5% a year.
What is an ELTIF?
A European long-term investment fund that invests in unlisted companies, infrastructure or private debt. Since January 10, 2024, it has been open to individuals with no minimum subscription.
How do I invest in a start-up?
Through a business angel network, an equity crowdfunding platform approved by the AMF, or a venture capital fund open to individuals, which spreads risk across many companies.
What are the risks of private equity?
Capital loss, illiquidity, valuations that are estimates until holdings are sold, high fees and a lock-up that can last longer than planned.