Bpifrance targets €4 billion to challenge US dominance in private equity

The fund, managed by executive director Jose Gonzalo, focuses exclusively on unlisted firms, marking a strategic shift from the bank’s previous Lac1 vehicle which targeted only publicly traded companies. Bpifrance plans to anchor the fund by committing 20% to 25% of the total capital, with aspirations to reach a ceiling of €5 billion.

To achieve this scale, the bank is courting a global investor base, specifically targeting Asian institutional players, North American pension funds, and Middle Eastern sovereign wealth funds. The investment strategy mandates that at least 60% of the capital must flow into French companies, while the remaining 40% is reserved for European firms with significant French operations. A board seat remains a non-negotiable requirement for every deal. The bank expects an initial closing by late 2025 or early 2026, followed by a second round of fundraising a year later.