Fundageo Vitalinvest

Fundageo Vitalinvest (“FV”, the SIF Fund) is a Long-Term European investment vehicle registered in Luxembourg. FV will invest in many residential properties mainly located in France, and acquired under a “viager” contract (a French contract close to Equity Release). Mutualising such contracts allows a low risk profile and solid returns to investors.

The Fund is looking for a total capital commitments of € 100,000,000 and will start operating when the € 20,000,000 first closing is triggered.

FV’s primary objective is to create value for its Institutional and Professional investors through an alternative yet profitable and stable asset class. The fund will also offer its investors an opportunity to diversify their asset allocation while staying uncorrelated to traditional markets.

Very importantly, buying in "viager", FV positions itself as a concrete financial answer to the growing social – and generational – issue of financing the dependency of elderly people. The Fund offers the sellers a much needed liquidity (most of it tax-free) as well as alleviating the burden of managing the property (see Impact section).

Fundageo built up a 15M EUR portfolio and has been managing it for 4 years alongside a major French Bank. As soon as the first closing is reached, Fundageo Vitalinvest will acquire it (±75 assets) allowing to : self-fund the existing assets (mature portfolio), shorten ramp-up phase and deliver safer returns.

As a consequence, the model has been fact-proved.

Financial description

FV offers solid Long-Term returns, they come from the mutualisation of the viager contract.
The IRR depends on assumptions that have been intentionally kept to the most conservative standards.
The IRR comes mainly from the discount offered by the viager contract. The seller has many advantages, the buyer have the symmetrical cons : he buys a property he cannot use, he pays a price he doesn't know over an unknown period, etc... As a consequence the market offers a discount to the buyer, a risk premium, in other terms. This premium is around 40 to 60% of the market price of the property. Buying one property doesn't allow to extract this risk premium, but mutualisation does, and it lowers the risk profile for the investor.
The partial reinvestment of proceeds of sales will also enhance the level of returns, and cater for the various fees.
The IRR will be built over time, as FV is a statistical model based on mortality tables, validated by independent actuaries.
FV Offers :
100% of the Real Estate (RE) market performance.
Distribution of dividends after portfolio is built-up.
Efficient hedge against inflation.
Long Term efficiency of the model confirmed by external actuaries and fact-proved for several years.
Solid long term yield boosted by partial reinvestment of proceed sales.
Maximized returns over an holding period of 12 years.
Uncorrelated asset
A limited Capital Requirement under Solvency 2 (RE limits the CR to 25% and the value of the assets is discounted)