FPCI KEYS EXPLOITATION
Professional Private Equity Fund (Fonds Professionnel de Capital Investissement [FPCI])
FUND MANAGEMENT OBJECTIVE
The fund was created to generate long-term capital growth by
prioritising investment in Companies in the real estate sector that is managed and not
listed on Financial Instruments Markets (FIM).
The Fund will invest in the capital of Companies providing real estate operations
services managing up to fifty (50%) percent minimum of the Total Amount of
Subscriptions.
The Fund may also invest up to fifty (50%) percent maximum of inflows in essentially non-controlling interests in
fast-growing property companies
and/or in new businesses driving the digital transformation of the real-estate sector
for a maximum of twenty (20%) percent of the Total Amount of Subscriptions
in proptech or real estech.
Reserved for professional and similar investors who meet the criteria specified in the
General Regulation of the AMF, article 423-49, in other words those
whose initial subscription is 100,000€ or more.
The Fund’s investment policy focuses on the following types of activities :
- A minimum of fifty (50%) percent of the Total Amount of Subscriptions will be
invested (directly or indirectly) in Companies providing real estate operations.
The Fund will be managed in particular through hotel operations,
holiday residences, student accommodation and retirement homes, co-working spaces,
open-air accommodation, youth hostels, car parks,
addiction health centres, retail and franchised outlets
and higher education and specialised training facilities.
The above list is non-exhaustive. These companies will pay labour and other current expenses connected with
these assets, specifically lease expenses – since these Companies
do not own the property – in exchange for a return on the income generated by the
businesses. The Fund may also make ancillary investments in
property-owning companies.
However, please note that real-estate investment trust units are not eligible assets for professional private equity funds (FPCI). - A minimum of fifty (50%) percent of the Total Amount of Subscriptions will be
(directly or indirectly) invested in Companies specifically specialised in
managed real estate assets. It concerns well-established and fast-growing operators in their
business sector backed by several years’ experience (or with
executives backed by several years’ sector-focused experience
if a new operator is being assessed), with a track record in line
with performance for the sector in question. Under this scheme, investment in the Fund will
essentially be made as non-controlling interests.
The quotas and limits referred to above will be checked at the end of the Fund
Investment Period and only by factoring in the Cost to Acquire
the Companies held or that were held by the Fund.
The investment may focus on companies that already exist or that are being created.
It may take the form of a primary investment, specifically
Companies’ capital increase subscriptions.
It may also be a secondary investment, specifically through the buyback of shares or securities that provide access to the capital of
Companies from third party vendors. The strategy will target unit
investment for the Fund of up to fifteen (€15m) million euros (excl.
debt). The investment will mainly be located in the European Union
(particularly France). Please note that a single Company may hold several
unit investments, e.g.: goodwill from a number of
hotels.
The Fund’s long-term objective is to sell its interests, whether direct or indirect,
in Companies by selling them to Companies’ management teams to all players in the
managed real estate market, or any other type of investor (investment
fund, etc.).
LEGAL FORM
FPCI
ASSET MANAGEMENT COMPANY
Equitis Gestion – AMF authorisation GP-02023
INVESTMENT ADVISORY
Keys REIM – AMF authorisation: GP-16000011
CUSTODIAN, DEPOSITARY AND REGISTRAR
RBC Investor Services Bank France
STATUTORY AUDITORS
PricewaterhouseCoopers (PWC)
ISIN CODE
FR0013342516
FUND CREATION DATE
25/07/2018
DURATION AND UNIT LOCK-UP PERIOD:
6 years and 9 months from the date of constitution, which can be extended by 1 year on two occasions by the portfolio management company
NET ASSET VALUE (NAV) CALCULATION FREQUENCY
Semi-annually: 30 June and 31 December, every year
ALLOCATION OF DISTRIBUTABLE AMOUNTS
Capitalisation
BENCHMARK CURRENCY
EUR
CAPITAL LOSS RISK
The fund offers no guarantees or protection. Investors may lose some or all
of their initial capital invested.
RISK RELATED TO INVESTING IN UNLISTED COMPANIES
The Fund is invested in unlisted small and medium enterprises (SMEs).
It is not certain how the companies the Fund invests in will perform
in the future. Nor is it certain that performance will be comparable with past performance
levels.
LIQUIDITY RISK
Liquidity risk measures how difficult it could be for the Fund to dispose of certain target
assets within a short period of time to raise cash or to deal with
a decline in the market value of the assets.
DISCRETIONARY MANAGEMENT RISK
This relates to poor performance by the selections made by asset (or operations) managers.
FRANCE
