France’s Fonds de Réserve pour les Retraites (FRR) has announced a significant expansion of its private debt programme, with between €600m and €800m set to be allocated.

The reserve fund has launched a restricted call for tenders to appoint up to three managers for dedicated ‘unitranche’ private debt vehicles.

At least 80 per cent of commitments will be directed towards French companies, with the remainder available to firms headquartered elsewhere in the eurozone.

Each mandate will run for 12 years with the option of three annual renewals.

Alongside the new tender, FRR has confirmed €40m commitments to each of Indigo Capital III and Siparex Intermezzo 3 Transition Carbone, both of which target mezzanine and unitranche financings for SMEs and mid-caps, following its earlier €50m investment in Indigo Capital II.

FRR said the programme was designed to finance growth and job creation among French and European companies, while ensuring strong long-term returns for the pensions reserve and integrating environmental, social and governance (ESG) considerations.

The fund added that the investments offer flexible financing solutions to support expansion, acquisitions and capital restructuring, limiting equity dilution for company owners.

Created in 2001, FRR’s mandate is to manage state-allocated reserves and contribute to the sustainability of France’s retirement system.

The move underscores the growing importance of the asset class in European pension portfolios, with data indicating that fundraising for European private credit funds nearly tripled in the first half of 2025 compared to the previous year, as institutional investors increased their allocations away from more established US markets.

Indeed, a growing share of European fund selectors have signalled plans to expand exposure to private debt, with the strategy overtaking other private market categories as a priority for pensions seeking diversification and yield.

For example, Dutch pension asset manager APG has announced its first infrastructure debt allocation, committing €425m to Schroders Capital’s Private Debt & Credit Alternatives infrastructure debt team.

At the same time, UK schemes such as Nest have outlined ambitions to raise private market exposure to as much as 30 per cent of assets, including credit, following the government-backed Mansion House Accord, which encourages pension schemes to direct capital to domestic private markets.

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