Financing SME using equity capital
Business financing is one of the four priorities of the Caisse des Dépôts Group's Elan 2020 strategic plan. It invests in SME to consolidate their equity capital, promote innovation and support the investment capital market, and grants loans to SME via OSEO. It supports business start-ups and the social economy.
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- The equity capital financing of SME with growth potential, not listed on the stock market
CDC Entreprises is a management company, and a subsidiary of the Caisse des Dépôts Group. It is dedicated to financing SME with growth potential and not listed on the stock market using equity capital.
It invests in capital investment mechanisms which themselves invest in companies and directly in SME. On average, it accounts for 35% of the seed capital funds in France and 20% of venture capital funds. CDC Entreprises finances around 2,500 companies.
CDC Entreprises is pivotal to the public interest mechanism France Investissement, founded on a partnership between Caisse des Dépôts and private institutional investors.
- Equity capital investment in strategic sectors
The Strategic Investment Fund (FSI), a subsidiary of the Caisse des Dépôts Group, was created on 20 November 2008 [news link]. Caisse des Dépôts has a 51% holding, while the State has a 49% stake. It invests equity capital as a sensible investor in French companies in manufacturing and service sectors with industrial projects which add value and competitiveness to the economy (for example: investment in Daher (€85m) and Valeo (€19m).
FSI intervenes as a minority shareholder, through involvement on its own or as a joint investor. Within the FSI, the Fonds de modernisation des équipementiers automobiles is designed to modernise and consolidate the equity capital of original car component manufacturers.
The use of savings funds in the economic relaunch programme
Caisse des Dépôts is committing all its strengths to participate in the fight against the economic and financial crisis. At the end of 2008 it offered measures tailored to the financing needs of the economy in this context.
Savings funds released nearly €43bn in liquidities in total:
- Transmission-LBO and capital development
Qualium Investissement, a subsidiary of the Caisse des Dépôts Group, develops competitive activities in two market segments: transmissions through transactions called "Leveraged Buyouts (LBO)" and major capital development transactions.
The funds managed by Qualium Investissement use equity capital to invest in businesses mainly worth between €30m nd €500m As a general rule, it acts as a majority shareholder. Its shareholding operations aim to support companies throughout their transmission operations, the recomposition of their capital or the transfer of subsidiaries or branches by large groups.
- Loans against Savings funds approved by Caisse des Dépôts
Caisse des Dépôts approves funding to the OSEO Group to finance the loans it grants to SME. This financing against savings funds comes from collections from the sustainable development savings account (livret développement durable) in particular.
In the framework of the relaunch plan, the budget was increased from €4bn to €6bn. Caisse des Dépôts and OSEO have created shared regional platforms in order to direct companies seeking funds towards the appropriate bodies and tools.
