Valley International / investing
Private equity and private assets for residents of France
Private assets require a long holding period and sufficient liquidity for capital calls. Before investing, test the commitment schedule against the rest of the household’s plans and possible moves.
Private assets include investments in unlisted businesses, debt and infrastructure. Some funds ask you to commit a sum that will be called in instalments; others require payment at subscription. In both cases, understand how the money is invested and when it may become available again. Limited liquidity is a constraint to plan for, not a promise of higher returns.
Understanding the fund’s calendar before committing
A closed-ended fund has a life, typically expressed in years and often extendable. You commit an amount rather than paying it; the manager then calls that capital in instalments as investments are made, on notice, and you are contractually obliged to meet each call. Distributions come back later, irregularly, as holdings are realised. The practical consequence is that you must hold liquid reserves against uncalled commitments for years, and that the money you receive early is often a return of your own capital rather than a gain.
Match uncalled commitments with money you can make available within the required notice period. Before signing, read what happens if a call is missed: penalties, restrictions or a loss of rights may affect amounts already invested.
How individuals gain access
Individuals may invest through funds with suitable minimum subscriptions, feeder funds that pool commitments, or eligible insurance-policy investments. Evergreen and semi-liquid funds may offer withdrawal windows, subject to limits, notice and possible suspension. A Luxembourg policy is another route to examine where the insurer and asset rules permit it. Luxembourg life assurance for a resident of France explains the structure; tax and service after a move still require a country-specific review.
How to read the valuation
An unlisted investment is valued periodically using estimates and a stated method. The figure in a report is not an offer to buy your holding at that price. Less frequent valuation can make reported movements appear smoother than those of listed investments without removing the underlying business risk. Read the valuation policy and reporting arrangements, alongside the eventual sale results.
Where it fits, and where it does not
Consider the commitment alongside your household spending, other investments and possible moves. Leaving France before the fund ends does not automatically prevent an investment, but it can change administration and taxation; Leaving France: tax, property and investment checklist sets out what to settle before a move. US persons also need to establish the US treatment of the vehicle before subscribing.
Frequently asked questions
How long is my money locked up?
A closed-ended fund can retain capital for its life, including extensions permitted by its documents. Distributions depend on realisations. A semi-liquid fund may offer periodic withdrawals, but limits and suspensions can apply. Use the proposed fund’s terms to plan, rather than relying on its label.
What is a capital call and what happens if I cannot meet one?
A capital call requests part of a sum you have committed to a fund. The notice specifies how much to pay and by when. A missed payment can trigger contractual penalties or affect existing rights. Establish the maximum commitment and keep a practical plan for meeting calls.
Why does my private equity holding look so much less volatile?
It is usually valued periodically rather than continuously on a stock exchange. Reported values therefore change differently. This does not prove lower risk: the methodology, quality of the underlying businesses and eventual sale prices all matter.
Can I hold private assets inside an insurance contract?
Some insurance policies permit eligible unlisted investments. Confirm the specific asset, insurer conditions, charges and liquidity arrangements. If you may leave France, obtain separate confirmation of continued service and examine the next country’s tax treatment. The policy does not settle those questions automatically.
ÉTHIQUE ET PATRIMOINE, a French simplified joint-stock company (SAS), registered office at 41 rue Saint-Ferdinand, 75017 Paris, France, Paris Trade Register no. 803 414 796, VAT no. FR 40 803 414 796, registered with ORIAS under number no. 24001817 (www.orias.fr) — Financial investment adviser (CIF) no. 18002418, member of ANACOFI-CIF, a professional association approved by the Autorité des marchés financiers, and Anacofi-Courtage for its brokerage activity. Presence: Paris, Montpellier, London, Singapore, Hong Kong, Bangkok, Shanghai and Dubai.
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Book a callWritten by Stéphane Molère, President of Éthique et Patrimoine — page last reviewed on 2026-09-15 — reference date for the rules: 2026-09-07.