Investment funds to support the regional economy

Thursday, 19 november 2020

The Banques Populaires and Caisses d’Epargne, two networks of cooperative banks deeply involved in the local and regional economy, are mobilizing their efforts as never before to help and support their clientele of business owners as they struggle to keep their local business activities alive.

Banque Populaire Aquitaine Centre Atlantique and the Caisse d’Epargne Aquitaine Poitou-Charentes for example recently announced the creation of the Rebondir Nouvelle-Aquitaine (“Nouvelle-Aquitaine Recovery”) fund to support local business customers affected by the health crisis. More than €20 million will be invested by the two Groupe BPCE entities to help boost the economy and preserve jobs in the New Aquitaine region. This support will be provided through the acquisition of equity interests or through the consolidation of equity and quasi-equity capital, of between €500,000 and €2 million, to allow businesses to continue their operations. The management of the fund has been entrusted to Galia Gestion, the capital development arm of Alliance Entreprendre, a private equity structure affiliated to Natixis Investment Managers. 

Players in economic recovery

This announcement echoes the involvement of the Caisse d’Epargne Normandie in the creation of Normandie Rebond (“Normandy Recovery”), an investment fund designed to support local companies weakened by the crisis. The aim of Normandie Rebond is to strengthen the equity capital of regional SMEs and ISEs having their headquarters in Normandy or doing significant business in this part of France, by focusing on companies that enjoyed a healthy economic situation before the crisis but now need to consolidate their equity capital in order to revive their business activities and redeploy their presence in the region. The fund, which already boasts a capital of €30 million (25.5% of which was provided by the Caisse d’Epargne Normandie), aims to reach a total of €50 million within three years.