Investments: how to invest in SMEs via a securities account or life insurance?


There are new solutions for investing in unlisted SMEs through specialist funds. (© Fotolia)

Direct investments in unlisted SMEs can contribute to the growth of a promising project or business. But it remains illiquid and risky and harder for savers to follow. But there are new solutions through specialized funds, especially in life insurance.

Faced with market turmoil, direct investment in the capital of unlisted companies can seem attractive.

It allows you to participate directly in the financing of a project, in the growth of a company. Over the past decade, individual investors have also taken an interest in this type of unlisted investment, which is rather practiced – historically and for the majority of the masses – by institutional or professional investors.

In 2021, French funds specializing in private equity raised almost 25 billion euros from investors, according to France Invest, the professional association of the sector. This amount is 17% higher than the previous record set in 2019.

Three main categories of private finance

But this universe is not homogeneous. There are several types of funds in the broad universe of SME financing, which are generally grouped into three main categories. The absence of liquidity and the level of capital risk is their common point, but with a gradual development of this liquidity and of the risk taken, according to the company’s stage of development.

Venture capital aims to invest in start-ups that have not yet proven their business model. It is therefore very risky if the company’s project is not final

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