Bpifrance LAC 1 Fund is Ready to be Deployed

Posted on 07/23/2020

French national investment bank Bpifrance disclosed it is ready to deploy the LAC 1 fund, which has an investment capacity near 4.3 billion euros. Mubadala Investment Company contributed 1 billion euros to the LAC 1 fund, joining over twenty new investors in the fund alongside Bpifrance. In addition to Mubadala Investment Company, over twenty investors participated in this first closing alongside Bpifrance, including large international and French institutional investors such as Covea, AXA SA, CNP Assurances, Crédit Agricole Assurances, BNP Paribas Cardif, Groupe Generali, Groupe VYV, Société Générale Assurances, le groupe Caisse des Dépôts, Natixis SA, AG2R LA MONDIALE, Aviva France (Aviva Plc), Groupe Groupama, Scor, CCR as well as large corporations and family offices, including notably Orange, Groupe Unibel and Financière Dassault.

According to a press release, “Following the Memorandum of Understanding (MoU) signed by the two parties in February 2020, the investment by Mubadala was completed at the first closing of the fund on 26th May 2020. With a current investment capacity close to 4.2 billion euros, including over 3.2 billion euros raised from investors and 1 billion euros of debt, this fund invests in French listed multinationals, leveraging on Bpifrance’s knowledge of the technological transitions and on its strong expertise in the governance of listed companies.

The successful closing of “LAC 1” fund underpins the attractiveness of France for investors and sovereign wealth funds from the Middle East. Bpifrance is offering to selected investors the opportunity to invest – through LAC 1 – in successful French listed equities with an active role in the governance applying a private equity’s investment strategy. The fund has been set up to invest significant long-term capital in leading French companies with the objective of supporting their strategic plans and maximising value creation. The target of the fund is to raise 10 billion euros to be invested in approximately 15 to 20 listed companies with a market capitalization above 500 million euros. The companies will be selected from a large pool of French world leading corporations over the next decade.

Furthermore, as the world is facing many challenges as the economic aftereffects of the Covid-19 pandemic, the French economy’s resilience and the “pro-business” reforms that have been undertaken foster foreign investors’ confidence in French listed companies.”

Keywords: Caisse des Depots.

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