France's Fonds de Réserve Pour les Retraites (FRR) has launched a c.€500m tender for private equities, as part of its unlisted investment programme.

The pension fund intends to select one to two managers to set up and manage a dedicated private equity fund of funds. The total amount of funds entrusted across all mandates is expected to be between €400m and €500m.

It specified that at least 80 per cent of the fund’s investments, which will be through underlying funds, will be in companies located in France. The remaining 20 per cent will be in companies located in the European Economic Area, the UK, or Switzerland.

As there is a cap of €300m for each underlying fund, investments will be mainly invested in micro-enterprises, small and medium-sized enterprises and mid-cap companies (SMEs and mid-caps).

Furthermore, investments in primary capital transmission and capital development funds will represent at least 75 per cent of the dedicated fund's portfolio.

“The aim of this call for tenders is to maximise the positive impact of FRR investments on the French economy by promoting the growth of regional businesses and the development of companies that generate significant employment, incorporating ESG criteria, and partly by investing in thematic funds or funds with a social impact,” FRR said.

It added that this is a restricted tender and the pension fund may award up to two mandates. Successful candidates will take on a 15-year contract, with the possibility of renewal for three periods of one year each.

Interested management companies have until Thursday, 28 August 2025, 12 noon Paris time, to respond to the FRR under the conditions specified in the consultation rules, and more information can be found here.

---