Specialized Professional Funds (FPS) represent an innovative category of alternative investments dedicated to knowledgeable investors. These funds offer differentiated strategies, particularly in the real estate sector, and allow investment in a wide range of assets, from unlisted companies to real estate properties. Additionally, they benefit from much greater flexibility compared to traditional funds.
A Flexible and Derogatory Structure
FPS are characterized by more flexible regulation compared to UCITs (Undertakings for Collective Investment in Transferable Securities). They can adopt various legal forms, such as Common Investment Funds (FCP), Variable Capital Investment Companies (SICAV), or Limited Partnerships (SCS). This diversity allows them to adopt varied investment strategies, particularly suited to real estate opportunities.
Unlike other funds, prior approval from the Financial Markets Authority (AMF in France) is not required for their establishment, only a subsequent declaration is necessary. However, their marketing remains subject to an authorization by the national competent authority.
Access Reserved for Qualified Investors
FPS are exclusively intended for qualified investors, such as professionals, financial institutions, or individuals with a minimum investment of 100,000 euros. This requirement ensures that investors possess the necessary skills to understand the risks associated with these investments, which are often linked to unlisted assets that are less liquid and difficult to value. Although potentially more profitable than traditional investments, these funds often carry a high level of risk.
Diversity of Assets and Strategies
One of the main advantages of FPS lies in their ability to invest in various unlisted assets, such as patents, real estate, or copyrights. This allows managers to deploy more audacious strategies, adapted to specific niches, such as co-investment in real estate development or property trading operations.
Real estate, a sector particularly favored by these funds, can be approached from different angles. FPS allow exploration of opportunities beyond traditional structures like REITs or OPCIs, particularly through high value-added projects, such as renovations or the transformation of buildings into coworking spaces. These strategies respond to real estate market developments and new standards, such as energy requirements.
Risks and Returns: A Balance to Master
FPS, like any investment in unlisted assets, involve risks, notably capital loss and low liquidity. The valuation of unlisted securities may not reflect their real value, and the low liquidity of underlying assets can pose problems in case of need for quick resale.
However, these risks can be offset by potentially higher returns than traditional investments. FPS are particularly suited for investors seeking to diversify their portfolio with assets less correlated to traditional financial markets.
Target Audience for FPS?
These funds are primarily aimed at experienced investors, whether professional or individual, who wish to diversify into specific sectors such as real estate or unlisted companies. Investors must be able to understand the risks and complexity of the underlying assets.
For non-professional investors, a minimum investment of 100,000 euros is required to access these funds. Additionally, the intermediary of an investment service provider is necessary to manage the acquisition of shares on behalf of the investor.
Conclusion
FPS offer a unique opportunity to diversify one's portfolio by accessing unlisted assets, particularly in the real estate sector. However, these funds are reserved for qualified investors due to the risks they entail. Before investing, it is essential to understand the investment strategy, management quality, and nature of the underlying assets to make an informed decision.
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