Year
2009
Category
1. Organizational Governance
Section
Relations with stakeholders
Sector
Finance / Banques / Assurances
Company size
PME with fewer than 100 employees
Country
France
Country
France
Address
16, rue Martel
75010 PARIS

www.citizencapital.fr

Citizen Capital, an investment fund which guides SMEs in creating value

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Background

Citizen Capital is an independent private equity fund, created in 2008 and finances, in owners' equity, the growing SMEs, and assists them in their projects.

Funded by institutional establishments (Banque Postale, Caisse des dépôts, Caisse d'Epargne group), and by some normal individuals, this fund is to specifically seek levers for growth in some segments that are little financed by the investment capital, from the point of view of the geographical location, profile or background of the executive or even the impact of the activity in terms of social responsibility.

For this fund, SMEs play a leading role in the economic growth and in the creating of value and jobs.

Objective (s)

Making profitable investments both from a financial and societal point of view

Approach


The fund's investment target integrates both financial and non-financial criteria. The fund invests in minority around 1 million Euros (range of 0.3 to 2.5 million Euros) through capital increase (shares) or shareholders' loans (convertible bonds). The non-financial criteria take into account:
-         The geographical location: firms located in disadvantaged areas (ZUS, ZFU, areas of great need of employment, isolated rural areas)
-         The profile or the background of the executive: businesses run by entrepreneurs having a self-taught profile (educated up to Baccalaureate +2), atypical training backgrounds (former athletes for example) or executives from Immigration & Dom-Tom)
-         The societal content: company engaged in a process of social responsibility

After the adequacy to the non-financial filter validated, Citizen Capital implements a professional financial analysis targeting SMEs that are developing and have already reached their break-even point and that achieve a turnover ranging from 1 to 20 millions EUR.

Citizen Capital defines itself as a pro-active partner for the support of the company (participation to the life of the company, turnover development support) and relies particularly on its network (the Citizen Network) comprised of investment, advisory professionals, and business leaders.

Factor(s) keys to success

  • The existence of a market with strong potential for value creation, little served by investment capital
  • A market niche successfully developed over 15 years in the U.S. and UK
  • Selection of the profile of executives reflecting their ambition and determination

Contribution to company performance

- Positioning in an under exploited market

Social and / or environmental benefits

- Citizen Capital is committed in a SRI approach to support its participations in a process of social responsibility.
- Non-financial criteria of societal type

Last modified Mardi, 31 Janvier 2012

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