Investment & Fund Management

The European Investment Fund (EIF) announced a significant investment of €40 million in the Fonds Stratégique des Transitions (FST), a private equity fund managed by ISALT, aimed at fostering a new generation of competitive and decarbonized French industrial leaders. This investment is part of the broader InvestEU programme, which supports the development of a competitive and sustainable industrial sector in France. The FST is focused on investing in 15 to 20 innovative French SMEs and mid-cap companies across key sectors such as alternative energy, decarbonized industry, quality of life, and technological innovation.

Since its launch in March 2023, the FST has already made investments in four promising companies: Tissium, a medtech firm developing next-generation reconstructive polymers; Intact, which specializes in regenerative plant-based ingredients; Unseenlabs, a space technology company for maritime surveillance; and Energies de Loire, focused on photovoltaic plant construction and operation. The fund is preparing for a final closing above €300 million in late March 2025, which will enhance its capacity to support the scale-up of pioneering French companies.

The FST has garnered strong backing from both public and private institutional investors, securing €206 million in its second fundraising round, which includes commitments from major players like Arundo RE, Abeille Assurances, and EDF Invest. This backing is crucial for providing long-term, stable capital to innovative industrial players, thereby driving the transition towards a competitive and decarbonized French industry. The EIF's investment into the FST represents one of the first from the InvestEU IPO initiative, targeting minority stakes in innovative companies that are considering or have undergone IPOs.

Overall, the FST aims to integrate environmental, technological, and social transitions into the growth strategies of the companies it supports, ensuring that they not only scale up but do so with a commitment to sustainability and innovation.