SMP

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France

Marketing

In France no private placement regime (or any other simplified regime) applies for marketing by sub-threshold EU AIFMs with the exception of EuVECA / EuSEF funds which can be marketed to professional investors and to non-professional investors who undertake to invest a minimum of EUR 100,000.
Marketing by sub-threshold EU AIFMs may only be conducted through an opt in to the full scope AIFM-regime.

Alternatively, the following actions will not be considered as marketing under French law:

  1. the purchase, sale or subscription of units or shares of an AIF in response to a client's unsolicited request to purchase a specifically designated AIF, provided that the investor is authorised to do so (please also refer to section "Reverse Solicitation" below);
  2. the purchase, sale or subscription of units or shares of an AIF under the terms of a third-party portfolio management agreement, provided that such financial instruments are authorised in the investor's portfolio;
  3. the purchase, sale or subscription of units or shares of an AIF within the framework of the financial management of an AIF, provided that such financial instruments are authorised in the assets of the AIF.

Pre-Marketing

N/A

Reverse Solicitation

In its Position no. 2014-04, the AMF has provided a definition of "reverse solicitation" as an exemption to "marketing", as follows: "the purchase, sale or subscription of units or shares of an AIF in response to a client's unsolicited request to purchase a specifically designated AIF, provided that the investor is authorized to do so" is not treated as marketing.

Reverse solicitation will only arise if an investor: (i) exclusively initiates the investment; and (ii) specifically refers to the relevant AIF. A general query that does not reference the specific AIF will likely be insufficient to qualify as a reverse solicitation.

The information in our toolbox provides managers of private equity or venture capital funds with an initial overview of certain framework conditions in the respective country. It does not provide advice on the law of any country, neither does it substitute such advice. Before marketing a fund into the respective country, it is at all times necessary to seek expert advice. Our team is happy to assist you with all questions at any time.

In collaboration with: Chammas & Marcheteau