Investing in Unlisted Investments in France: Comprehensive Guide and In-depth Analysis 2025

Unlisted investments, also known as private equity or venture capital, have now become an indispensable pillar of the French financial landscape in 2025. Increasing numbers of investors, both individual and professional, seek to diversify their portfolios and access an asset class that was previously reserved for institutional investors. This comprehensive guide analyzes in detail how unlisted investments work, their opportunities, key players, and prospects for the current year.

Private Equity in France: Overview and Recent Evolution

For several years, France has shown remarkable dynamism on the private equity market. Despite a global context marked by valuation corrections, the French ecosystem has managed to maintain sustained levels of activity. In 2023, French startups raised nearly €10 billion, positioning France just behind the UK and Germany in Europe.

Several factors explain this trend:

  • A proactive public policy through sovereign funds (Bpifrance, Tibi initiatives, etc.)
  • The emergence of a new generation of venture capital and private equity funds
  • An increasing interest from international investors and the rise of strategic sectors such as AI, biotech, fintech, and technologies related to energy transition

The year 2025 confirms this dynamic, with remarkable resilience against macroeconomic uncertainties, whether political, fiscal, or geopolitical. Private equity is now recognized for its ability to finance real economy growth and its resilience over the long term.

What is Unlisted Investment?

By definition, unlisted investment encompasses all operations allowing participation in companies that are not listed on the stock exchange. It involves investing in the capital of companies at various stages of development, whether innovative startups (venture capital), growing SMEs (growth equity), or mature enterprises (capital transmission/MBO).

The objective of this asset class: to finance growth, promote innovation, facilitate the transfer of family-owned businesses, and generate, over the long term, potentially superior returns compared to listed markets, at the cost of increased risk and reduced liquidity.

The Different Segments of Unlisted Investments

  • Venture Capital: financing of very young companies or innovative startups, often positioned in technological, health, or ecological transition sectors.
  • Development Capital: support for SMEs and mid-cap companies in growth phases, to accelerate their international deployment, invest in R&D, or strengthen their competitive positioning.
  • Capital Transmission (LBO, MBO, MBI): financing of the acquisition of mature companies, typically during a change in ownership or family succession.

Why Invest in Unlisted Investments: Benefits and Risks

Unlisted investment addresses several challenges for investors:

  • Portfolio asset diversification, reducing correlation with traditional stock markets
  • Access to the growth potential of innovative and agile companies
  • The opportunity to capture outperformance over the long term through active support provided by funds

Risks to Consider

  • Lack of liquidity: These are investments locked in for a long period (often 7 to 10 years)
  • Capital loss risk: Not all funded companies reach maturity or the expected exit
  • Non-observable market value: The absence of listing makes portfolio evaluation less transparent

However, in exchange for these risks, unlisted investments historically offer an attractive illiquidity premium and allow for the development of local economies and job creation.

Overview of Leaders in the French Market

The French market is organized around several major types of actors:

  • Independent private equity funds: Partech, Alven, Serena, Capza, Eurazeo, etc.
  • Public and quasi-public funds: Bpifrance, with a leading role in democratizing access to unlisted investments, through investment funds accessible starting from modest amounts.
  • Banking institutions, insurers, family offices, and specialized management companies

Since 2025, the commitment of the French State via Bpifrance has strengthened, notably with the launch of new formulas such as "Bpifrance Entreprises 3", making investment accessible to individuals starting at €500. This fund brings together a wide selection of unlisted companies at various stages of maturity and sectors of activity: technology, climate, health, industry, consumption, etc.

How to Invest in Unlisted Investments in 2025?

A number of solutions exist to access this class of assets, according to one's profile and appetite for risk:

  • Subscription to private equity investment funds (FCPR, FPCI, FCPI, FIP), either through specialized management companies, or via approved platforms
  • Participation in individual-focused funds, such as those offered by Bpifrance or certain insurers within the framework of life insurance contracts and PER insurance policies
  • Equity crowdfunding platforms allowing investment from small sums in selected startups
  • For experienced investors: direct investment in the capital of unlisted companies during successive rounds

It is essential, before committing, to thoroughly understand the operating mechanisms of the fund (structure, fees, duration, liquidity, allocation policy), to ensure its registration with the AMF, and to take into account the risk profile associated with each solution.

Performance and Prospects of French Private Equity in 2025

Historical performance of private equity funds in France generally shows higher returns than the CAC 40 over long horizons, often with a premium of 300 to 500 basis points per year, although the dispersion of results is significant according to strategies and vintages.

In 2025, with a substantial level of available capital (close to 5 billion euros of new funds raised in 2023), the ecosystem has a significant "dry powder" ready to be allocated. The most dynamic sectors remain AI, fintech, energy transition, healthcare, and deeptech.

Main Sector Trends

  • Artificial Intelligence (AI): Paris is establishing itself as a European hub for AI, attracting both French and international capital, and fostering the emergence of European champions.
  • Biotech/Medtech: The strong research base in France stimulates the birth of promising startups.
  • Climate/Green Tech: Driven by regulatory challenges and responsible investment (ESG).
  • Fintech: Innovation in payment methods, neo-banks, and new financial services continues to attract funding.

Unlisted Investment: Regulatory and Tax Environment in 2025

In France, private equity is strictly regulated by the AMF and benefits from an evolving regulatory environment. Some investment vehicles qualify for tax relief on income tax or wealth tax (IFI), provided certain criteria regarding lock-up periods and eligibility of target companies are met.

It should be noted that the tax environment in 2025 remains uncertain due to the political situation after the elections and delays in passing the Finance Law. This uncertainty can influence the attractiveness of investment, particularly in large-cap companies.

Focus on Responsible Investment and ESG Criteria

For several years, the consideration of ESG criteria (Environment, Social, Governance) has become essential in the allocation of unlisted assets. Many funds impose stringent requirements regarding corporate governance and environmental impact, including to obtain the ISR or Greenfin label and attract major institutional investors.

Investment Strategies Tailored to Your Profile

The success of unlisted investments largely depends on the alignment between the chosen strategy and the investor's profile:

  • Individual Investor: Prioritize diversification through pooled vehicles (public FCPR, Bpifrance Entreprises, life insurance) to smooth out the inherent risks of capital risk.
  • Professional or Wealthy Investor: Option to invest through deal clubs or direct subscriptions to specialized funds, relying on thorough due diligence.

For each profile, it is recommended to allocate the portion dedicated to unlisted investments based on the investment horizon, risk tolerance, and ability to immobilize funds for the recommended duration.

Case Study: How Does a Typical Portfolio Compose in 2025?

To illustrate the reality of unlisted investment, here is a typical portfolio set up by Bpifrance through its fund "Bpifrance Entreprises 3" launched in March 2025:

  • 76 underlying funds, including 64% French funds, 19% European and 17% international
  • A mix of 75% private equity (French SMEs, ETIs, and European companies) and 25% venture capital (innovative startups, scale-ups)
  • A sectoral distribution favoring tech, health, environment, and services
  • Access starting from €500, aiming for democratization

This fund illustrates the dual ambition of returns and diversification, actively participating in the financing of the local economic fabric.

Comparison Table: Listed vs Unlisted Investment

Criterion Public Market Unlisted Market (Private Equity)
Liquidity High Low (subscription locked for 7-10 years)
Long-term Return Moderate to high Often superior, but very variable
Risk Correlated to markets More risky, illiquidity premium
Transparency Total (real-time prices) Less (periodic valuations)
Accessibility Immediate, all profiles Growing market for individuals
Minimum ticket size From a few euros Generally €500 to €1,000, sometimes more
Tax incentives PEA, life insurance Tax reduction under certain conditions
Direct impact Limited Strong, direct financing of SMEs/startups

Tips for Successfully Investing in Unlisted Assets in 2025

  • Inform yourself about the strategy, management team, and history of the fund
  • Evaluate the sectoral and geographical diversification offered by the fund
  • Well understand the horizon and liquidity lock inherent to the investment
  • Prefer solutions labeled ISR/ESG according to your values
  • Adapt the portion of your wealth allocated to unlisted assets (often less than 10% for individuals)
  • Seek advice from a professional or your bank before subscribing

Conclusion: Unlisted assets, an opportunity for diversification and support for real economy

In 2025, unlisted investment emerges as a central asset class to meet the needs of diversification and return on investment while actively contributing to the development of the French and European real economies. The dynamism of French actors, product innovation (accessible funds), and the growing role of ESG criteria place France in a good position to consolidate its place among the top three European private equity markets.

Before investing, it is essential to analyze the terms, risk profile, fees, and duration of the lock-in period, and to consider these investments over the long term. By following these recommendations and relying on reputable actors, it is possible to turn this investment into a major asset of your financial portfolio.

FAQ: Frequently Asked Questions About Unlisted Investments

What is the recommended minimum holding period?

Generally between 7 to 10 years, or longer depending on the fund. Early redemptions are very restricted.

Can one lose the entirety of their capital?

Yes, the risk of losing the entire capital exists, even if it is limited by diversification within mutual funds.

Is the investment accessible to everyone?

More and more solutions exist (public funds, digital platforms), but one must have capital "immobilized" for the duration of the contract.

What prospects for 2025 and beyond?

The outlook remains solid in France for private equity, particularly in innovative and responsible sectors, despite an uncertain macroeconomic context.

How to choose your fund?

Examine the track record of the management team, the sector of investment, the level of fees, the liquidity terms, the ESG commitment, and prefer products registered with the AMF.