Last updated 11 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / Western Europe (42) / France (3)
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.
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.
A limited Capital Requirement under Solvency 2 (RE limits the CR to 25% and the value of the assets is discounted)
of track record
the year funded
Eradicate extreme poverty
Equal rights to ownership basic services technology and economic resources
Ensure equal opportunities and end discrimination
Safe and affordable housing
Universal access to sexual and reproductive care, family planning and education
Sustainable economic growth
Develop sustainable, resilient and inclusive infrastructures
Key performance indicators
Asset manager: Fundageo Life Asset Management
Product track record: Fund has 6 years of track record
Target IRR: 6%
Committed Capital: 0 EUR (Euro)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Luxembourg
Product status: Open - committed capital
Inception year: 2017
Vintage year: 2017
Target region: Developed countries, France, More developed regions, Western Europe
Target close date: n.a.
Product term: 12
Assets under management: 100,000,000 EUR (Euro)
Investment size: Min: 0; Max: 0; Avg: 0
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: Credit Mutuel Nord Europe - France
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: 442074399185.00
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Problem : The longevity crisis - i.e. the ageing of the population - imposes a growing financial pressure on pensioners. Public funding will not be able to tackle the cost of a very old population.
The "viager" contract offers an efficient element of solution.
A “Viager” contract consists of an property sale where the seller (a pensioner) retains a lifelong right to live in the property. The seller receives from the buyer an upfront down payment (the “bouquet”) and a guaranteed monthly payment for the rest of his/her life (the “annuity”).
Advantages for the seller :
- Tax-free down-payment upfront.
- Lifelong right to live in the property. This right belongs to the seller and cannot be transferred.
- Guaranteed lifelong annuity (70% tax-free).
- Benefits from a strong legal protection in case buyer fails to pay.
Mutualising many viager contracts has a direct impact on pensioners' lives : They do live better, cure themselves better, maintain a social life. Most of them also praise the serenity that comes with the contract as al maintenance and administration of the property is transferred to the buyer.
It also have an indirect impact : pensioners transfer some purchasing power to younger generation, they also hire helpers (local jobs that can't be delocalised).
70% of sellers declared their income was too low to live decently before they sold in viager.
FV offers a concrete solution to the increasing need of revenues of our Silver Generation.
intergenerational solidaritylongevity riskReal Estatesocial impact