Edmond de Rothschild Investment Partners has launched Partenariat & Innovation, a new fund that will allow investors to invest directly in underlying French companies and in the firm’s private equity funds.
The firm is looking to raise €25 million (US$36 million) for its new offering.
As required under French legislation for Innovation Funds, the fund’s portfolio will be 60% invested in private companies companies and 40% in the firm’s other products such as equity fund management, fixed income products, and alternative multi-management products. It was certified by the Autorité des Marchés Financiers on July 27.
Of the 60% allocated to direct investments, 45% of that portion will be invested in French companies to finance both organic and external growth transactions and the remaining 15% will be directly invested by the firm’s life sciences team in co-investments with its private equity fund, BioDiscovery.
“Our goal is to limit risk for the investor by picking growing unlisted companies with proven business models, in all sectors of the economy,” said Pierre-Yves Poirier, a partner.
The fund has a seven-year investment period subject to two one-year extensions. Long-term minded investors, who are privy to six month reporting periods and quarterly net asset-value updates, can redeem after six years. The subscription period for the new offering ends Dec. 27. There is a management fee of 3.6% per annum
Edmond de Rothschild Investment Partners manages over €500 million (US$712 million) in p.e. and venture capital funds.