Tuesday marked the second strike in France that contested the pension reform that would increase the retirement age to 65 and raise the years of contribution for a full pension from 41 to 43.
France observes a growing divide between the rich and poor in society. With a sentiment of shift from a solidarity economy of France to a capitalistic one. With inflation, economic downturn, and pension reforms, French citizens are looking to increase their personal savings to plan for retirement. According to a study carried out by Cercle de l’Epargne in 2022, 52% of French people turn to savings for their retirement, and the figure even rises to 60% among 25–34-year-olds.1
According to the AMF, “Real estate, [is the] preferred investment of the French.” But as Private Equity democratises, it gives an option to retail investors to diversify their retirement savings.
Private Equity is an option
Private Equity is an alternative asset class that has been outperforming the public financial market returns. Having always been exclusive to institutional investors or high net worth individuals, the last decade has observed the industry democratise. Today, it welcomes retail investors who invest smaller ticket sizes.
The specificity of a Private Equity is that the investment is less volatile to the economic cycle, as it has a longer holding period of 8 – 10 years. This makes the investment more illiquid.
How can the French invest in Private Equity?
Last year, Boursorama gave their clientele the possibility to invest Private Equity FPCR funds through its online trading platform Boursomarkets, which already offered retail investors access to tax-exempt funds FIP and FCPI.
Accessible without entry fees, the FPCR funds have varying annual fees and a minimum ticket size of:
- 25 € for subscriptions through a life insurance
- 100 € for subscriptions through a investment or PEA-PME account
Today, Boursorama offers the possibility to invest in the funds created by Amundi Private Equity Fund, ODDO BHF PE, and Eurazeo, targeting a yield of respectively, 8%, 9%, and 11-13%.2
Read more on the democratisation of Private Equity, here.
- https://www.francetvinfo.fr/economie/retraite/reforme-des-retraites/reforme-des-retraites-de-plus-en-plus-de-francais-se-tournent-vers-l-epargne-pour-preparer-leur-retraite_5621279.html
- https://www.cfnews.net/L-actualite/Marche-General/Private-equity-retail/Boursorama-prend-part-a-la-democratisation-du-PE-420162
