France’s Fonds de reserve pour les retraites (FRR) is looking for two to three asset managers to invest €600m in European and French private debt as it rolls out its new strategy for unlisted assets.
The new strategy was made possible by an extension of its investment horizon to beyond 2033, with FRR previously indicating that it may be able to commit up to €500m per year from 2025, maintaining the nearly €3bn target amount of unlisted assets investment.
Last month, the reserve fund closed a call for tenders for private equity mandates for up to €500m in investment.
With respect to private debt, the €21bn public fund has now said it is looking for managers to make investments over five years in unitranche debt of European and French SME and mid-caps, to support their growth and development.
The managers will be asked to manage dedicated funds investing at least 80% in French companies, with up to 20% allowed in other euro zone countries.
The total amount allocated across all mandates could rise to €800m.
FRR last week announced it had selected mezzanine private debt funds, committing €40m each to Indigo Capital III, a mezzanine and preferred equity fund that operates without sponsors, and Siparex Intermezzo III Transition Carbone, which focuses on carbon transition and also uses mezzanine and unitranche sponsorless financing.
FRR invested €50m in Indigo Capital’s predecessor fund.
In a statement, FRR said the funds offered flexible financing solutions for companies to support development, acquisitions, or capital restructuring while limiting equity dilution.
The deadline for the call for tenders is 12 November.
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