AMF Announces Establishment of Working Group on End of Life for Private Equity Funds

The Financial Markets Authority (AMF) brings together experts in this sector to develop proposals for adapting the regulatory framework to the challenges faced by management companies.

Private equity funds (FCPR, FIP, FCPI, FPCI, etc.) face end-of-life issues related to the difficulties portfolio management companies face when selling various holdings on time in good conditions. doing. Commitment for the period when the fund was launched and made with the relevant regulatory provisions.

Finding a buyer for an investment held by a maturity fund must be done by the management company with the dual purpose of respecting the life of the fund and managing it for the best interests of the investor. It will not be. This equation can be difficult to respect if the fund invests in a difficult company or a company that has not completed the value creation cycle (for example, a situation frequently encountered in a fund investing in biotechnology). ..

As of December 31, 2020, of the 569 private equity funds open to non-professional investors (FIP, FCPI, FCPR), 253 were out of life.

These situations raise many questions on the part of the saver. Therefore, the Epargne Info Service platform regularly registers requests for the lifetime of private equity funds. AMF mediators have reported a significant number of approaches from unitholders regarding the information provided by these funds and the lack of refund of the amount invested on time (170 on capital investment in the 2017 period). 78 of the mediation files-2020).

In addition to the issue of saver protection, the end of the life of a private equity fund is also a problem for management companies as the assets are almost always non-contributory, even though they require the mobilization of critical resources. Causes.

Faced with these challenges, AMF wants to adapt its regulatory framework to the end of its life as a private equity fund, as announced in its 2022 Action Priority.

With this in mind, a working group was set up to implement joint reflections to propose improvements to the end-of-life regulatory framework for private equity funds. Management company activities. The working group’s work should lead to the development of proposals by the summer of 2022.

This working group, chaired by Muriel Faure, a member of the Board of Directors, consisting of representatives of the AMF Board of Directors, various experts involved (management companies, depositaries, auditors, lawyers) and investors: It is configured as follows.

  • Muriel Faure, Chair of the Working Group and a member of the AMF Board of Directors
  • Herve Chappuy, BPSS
  • Emmanuel Corcos, Ernst & Young
  • Emmanuel Coolant, Pearl Capital, AMF Management and Institutional Investor Advisory Board Member
  • Member of Carine Echelard, CACEIS, AMF Management and Institutional Investor Advisory Board
  • Jean-Fran├žois Filliatre, a member of the AMF Investor Advisory Board.
  • Marc Guittet, 123 Investment Managers
  • Sylvianne Guyonnet, Eurazeo Investment Manager
  • Charles Keller, member of the AMF Board of Directors
  • Stephen Purel, Gide, Member of AMF Management and Institutional Investor Advisory Board
  • Frederic Sellam / Sarah Kressman Floquet, PWC, AMF Management and Institutional Investor Advisory Board Member
  • Patrick Swett, a member of the AMF Board of Directors
  • Sara Taubila, RSM
  • Vivien Trocherie, SGSS
  • Antoine Valdes, Eiffel Investment Group

Marie Christine Cafe, Jacqueline Eli Namer, and members of the university will provide their assistance.

The working group can consult with the Association of Professionals.

About AMF

AMF, an independent public institution, is responsible for ensuring the protection of savings invested in financial instruments, informing investors and ensuring that the market functions properly. Visit our website: https: //www.amf-rance.org