France’s pension reserve fund, Fonds de Réserve pour les Retraites (FRR), is seeking to appoint one or two asset managers to oversee private equity fund-of-funds under long-term discretionary mandates totalling up to €500m, according to a report by IPE.

The new mandates will focus heavily on the French mid-market, with at least 80% of the portfolios to be invested in companies based in France. The remaining 20% may be allocated to firms located in the EEA, UK, or Switzerland. Underlying funds must be no larger than €300m and are expected to target small and mid-sized businesses with strong growth potential.

At least 75% of each portfolio must be allocated to primary buyout and growth capital funds. The investment strategy will prioritise economic development and job creation in regional areas, while applying ESG principles throughout the selection process. The initiative may also support social impact and thematic private equity strategies.

The total value across both mandates is expected to range between €400m and €500m, with each mandate running for an initial 15-year term and the option for three one-year extensions.

Interested asset managers have until 28 August 2025, 12:00pm Paris time, to submit their applications.

The launch follows FRR’s recent appointment of AXA Investment Managers and Ostrum Asset Management for a separate €1.4bn fixed income mandate, underscoring the institution’s continued diversification into private capital markets.

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