Launched in August 2020 as part of the Plan de Relance Tourisme, a recovery plan for the tourism sector led jointly by Banque des Territoires and Bpifrance, the investment fund France Investissement Tourisme 2 (FIT 2) helps French small businesses and mid-caps in the tourism industry revive their business activities post-pandemic. Initially endowed with €186 million, the fund will receive an injection of €54 million from existing investors, increasing it to €240 million in total and enabling investments to continue in 2023.
A fund to revive and support companies in tourism and recreation
FIT 2 is a sector fund for the tourism and leisure industry. Launched in August 2020 in response to the pandemic, its investors are Banque des Territoires, Bpifrance (also the fund manager) and the European Investment Bank (EIB).
The fund is designed to assist tourism operators that have suffered a cyclical shock due to the impact of the pandemic, fuelling growth capital transactions to facilitate their recovery. It can also participate in consolidations.
The fund is aimed at small and medium-sized enterprises (SMEs) and mid-caps that have existed for at least three years, have turnover of more than €3 million and were profitable before the pandemic. FIT 2 acquires minority interests in equity and quasi-equity ranging from €500 000 to €10 million, depending on the target's size and growth potential.
It primarily caters to the sectors of accommodation (hotels, outdoor facilities, youth hostels, glamping, etc.); recreation (sports halls, botanical gardens, amusement parks, boat rental, etc.); dining (fast casual, traditional, hybrid retail, etc.); intermediaries and transport (travel agencies, tour operators, etc.); and tourism solutions (yield management, back-office digitalisation, etc.).
€156 million already deployed to support tourism businesses
Since its creation, FIT 2 has supported 44 companies and completed 54 transactions, for a total of €156 million invested as of 31 December 2022.
The fund portfolio is 45% companies in the accommodation sector, 25% recreation, 16% dining, 9% intermediaries and 5% tourism solutions.
In particular, FIT 2’s investments have first allowed small businesses and mid-caps to amass own funds and weather the crisis, and then helped them to redeploy with growth capital transactions to speed up their recovery.
FIT 2 can also assist with reinvestment transactions. This was the case for eight portfolio companies (Groupe Bourdoncle, Groupe Touriste, Arkose, Voyageurs du Monde, Urban Loisirs, Experimental Group, Groupe WS and Outsite) that received additional funds, largely for aggressive reinvestment plans.
Stronger action with an additional €54 million
Given the fast pace of deployment, Banque des Territoires, Bpifrance and the EIB decided to grow FIT 2 to €240 million (with an injection of €54 million) and renew Bpifrance’s mandate as fund manager.
By participating in the transaction, Banque des Territoires and Bpifrance are building on a commitment they first began in August 2020 under the tourism recovery scheme Plan de Relance Tourisme. The EIB is involved through the European Fund for Strategic Investments (EFSI) as part of the Investment Plan for Europe (also called the Juncker Plan).
This transaction should enable a year of further investment maintaining a similar objective: to accelerate the recovery of tourism operators by promoting growth capital transactions. The goal of FIT 2 is to rally co-investors in this segment, creating a ripple effect and boosting investor confidence in the industry ecosystem. Beyond this financial contribution, Bpifrance is also offering tailored consulting centred around two pillars: digitalisation and integrating environmental considerations.
“We are proud to have helped companies of many different sizes and tourism-related businesses through the worst of COVID-19. Their rebound in 2022 strongly confirmed our belief in the sector’s resilience. Replenishing the fund will enable us to keep supporting companies in this sector as they grow, strengthening this outstanding French industry,” said Serge Mesguich, Director of Bpifrance’s FIT 2 fund.
“With this new contribution to FIT 2, Banque des Territoires affirms its commitment to the tourism sector, a key engine for business creation across all regions of France and a priority area for delivering on our national development mandate. Banque des Territoires is also strengthening its partnership with Bpifrance, as each entity’s business perfectly complements the other's: investment in real estate by Banque des Territoires, and corporate investment by Bpifrance,” remarked Antoine Troesch, Investment Director at Banque des Territoires.
“We are very pleased to see how successful the deployment of this fund has been. This is an innovative financial instrument for supporting small businesses in the tourism sector that have been severely impacted by the pandemic, and one in which the EIB has been able to participate thanks to EFSI, or the Juncker Plan,” explained Jochen Von Kameke, Head of the Financial Instruments Unit at the EIB.
Speakers
- Banque des Territoires: Christophe des Roseaux
- Bpifrance Participations: Serge Mesguich, Pierre Bollengier
- EIB: Jochen Von Kameke
Examples of investment support activity
Building up own funds/supporting a key player: Potel et Chabot is an international caterer in the high-end event management sector and an industry leader in Île-de-France. In 2020 the group experienced a drastic drop in revenue, which reached only a quarter of its 2019 level. In May 2021, FIT 2 bought into Potel et Chabot to replenish its equity alongside existing shareholders. Thanks to this intervention and the hard work of the bankers involved, the company was able to get through a difficult period and bounce back significantly in 2022.
“I am delighted about the support provided by FIT 2, which has facilitated the group's continued transformation, making 2022 a historic year in terms of revenue and EBITDA and laying the foundations for its future development,” said Alain Postic, CEO of the Momense Group comprising Potel et Chabot and Saint Clair.
Consolidation/external growth strategy: In July 2020 FIT 2 invested in Voyageurs du Monde, a group specialising in adventure travel and custom travel, to build the group's equity. In April 2021 the fund made another major investment in the group, part of a €130 million capital increase to accelerate its growth while integrating sector-specific ESG considerations. As a result, in May 2022 Voyageurs du Monde was able to acquire the Austrian Eurofun Group (2019 turnover of €80 million), the European leader in bicycle travel. It thus increased its presence in a business segment that has low greenhouse gas emissions, is located in Europe and is less vulnerable to the impact of health crises, while also gaining further reach into international markets.
Organic growth strategy: In 2022, FIT 2 invested in Parc Animalier de Sainte-Croix. This progressive zoological park is unique in its field, and seeks to help people reconnect with nature through its strong values and commitment to conserving biodiversity. The 52 cabins nestled throughout the park have made the area an exceptional nature destination with a European focus (close to Luxembourg, Belgium, Germany and Switzerland) that promotes animal welfare (by providing semi-wild conditions). FIT 2’s investment allowed the park to build new nature-blended cabins and expand its catering offering.
“Since 2022, our collaboration with the FIT 2 fund representatives on Sainte-Croix’s strategy board has added real value to the company’s development. In conjunction with Bpi's experts, we are shaping the park's future in line with our mission,” explained Laurent Singer, Chair of Parc Animalier de Sainte-Croix.
Background information
About the European Investment Bank
Since 2019, the EIB has been accelerating its transformation into the EU climate bank with a commitment to devote at least 50% of its financing from 2025 to investments that help combat and mitigate the impact of climate change. In 2022, it had already achieved this target in France, directing over two-thirds of its €8.4 billion of investment to projects in renewable energy, energy efficiency of buildings and sustainable transport development.
About Bpifrance
Bpifrance’s equity investments are conducted by Bpifrance Investissement.
Bpifrance finances businesses — at every stage of their development — by providing credit, guarantees and equity. Bpifrance helps them innovate and perform on international markets. Bpifrance now also assists them with their export business, via a wide range of products. Advisory and university services, networking, and an acceleration programme for startups, SMEs and mid-caps are just some of the options businesses can choose from.
Thanks to Bpifrance and its 50 regional branches, businesses can turn to a single, efficient local player to meet their challenges head-on.
About Banque des Territoires
Established in 2018, Banque des Territoires is one of the five arms of Caisse des Dépôts. It brings in-house regional expertise together within a single structure. It is a single point of entry for clients, providing made-to-measure advice and financing solutions for loans and investments to meet the needs of local authorities, social housing associations, local public enterprises and legal professionals. It is aimed at all French regions, from rural areas to large cities, with the goal of eliminating social and regional inequalities. Banque des Territoires is represented by 16 regional offices and 37 local branches of Caisse des Dépôts to enhance visibility and proximity to its customer base.
For more attractive, inclusive, sustainable and connected regions.