Pillar 09 · Unlisted Assets
Accessing unlisted assets intelligently
Private markets have historically delivered higher returns than listed markets, with lower correlation. But the dispersion of performance is enormous: the best funds return 2 to 3 times the capital invested, the worst destroy it. Selection and diversification are everything.
FCPI/FIP reduction
18% (25% LDF)
Minimum horizon
8 to 10 years
Historical top-quartile PE IRR
~12 to 18%
Recommended portfolio share
5 to 15%
§ 01
FCPR and FPCI (standard private equity funds, open to eligible professional investors), FCPI/FIP (tax-advantaged funds with 18 to 25% tax reduction), evergreen funds (more liquid), and direct club deals. Each structure serves a different objective: tax relief, performance, or access.
§ 02
Over 20 years, the gap between the top and bottom quartile of private equity (PE) exceeds 15 points of annual IRR. Putting a single ticket into 'one' private fund is speculative. The real method is to build a programme across several vintage years and several strategies.
§ 03
An immediate 18% reduction looks appealing on paper. But the average net performance of FCPI funds has historically been disappointing, and the tax reduction often just offsets the underperformance. Reserve these for carefully selected managers, not for buying off a bank's catalogue.
§ 04
After 5 years, capital gains on some FCPR/FPCI funds are exempt from income tax (social charges still apply), equivalent to PEA tax treatment. For a wealth-focused investor genuinely seeking performance, this is often far more efficient than an FCPI.
§ 05
Since the 2023 'green industry' law, access to private markets through assurance-vie and PER contracts has become easier. This route is worth exploring: it combines the tax wrapper with the asset class, with liquidity managed by an intermediary.
Frequently asked questions
For an established liquid portfolio, a range of 5 to 15% is reasonable. Below €300k to €500k in financial assets, exposure to this asset class is often premature.
Start together
Let's talk it through directly. First conversation offered, with no commitment.
Or receive The Oak Letter every month.
Your messages are only used to reply to you. For advice tailored to your situation, nothing beats a real conversation with Camil.
