Bpifrance seeks to raise €4 billion private equity fund, executive says

(Fixes typos in last bullet point)

By Mathieu Rosemain

PARIS, June 18 (Reuters) - Bpifrance is seeking to raise a fund targeting large minority stakes of €200 million to €500 million in unlisted French and European companies, a niche currently dominated by U.S. investors, an executive at the French state investment bank said on Thursday.    

The fund, dubbed "Blue Sea", will be a pure private equity vehicle focused on unlisted firms, said Jose Gonzalo, executive director in charge of direct investment in small, medium and large companies at Bpifrance. Its predecessor, Lac1, invests exclusively in listed companies.    

• Bpifrance will commit 20% to 25% of the fund, acting as anchor investor, Gonzalo said.

• The fundraising target is €4 billion, with the ambition to reach €5 billion, Gonzalo said.

• The fund aims to attract a geographically diverse investor base, including Middle Eastern sovereign funds, North American pension funds and Asian institutional investors, Gonzalo said.

• At least 60% of investments will be in French companies. Up to 40% can be in European firms with a strong French presence, Gonzalo said.

• A board seat will be a non-negotiable condition for every investment.

• A first closing is expected by end-2026 or early 2027, with a second closing roughly 12 months later.

(Reporting by Mathieu Rosemain. Editing by Mark Potter)