A&O Shearman advises NextStage AM on the launch of an FPCI eligible for the contribution-sale scheme

Since 2019, the contribution-sale scheme referred to in Article 150-0 B ter of the French General Tax Code allows entrepreneurs who have sold their business to benefit from a deferral of capital gains tax by investing at least 60% of their sale proceeds in eligible private equity vehicles. Entrepreneurs benefit from the opportunity to invest in diversified assets while supporting the growth and innovation of developing companies.

Eligible for the transfer contribution scheme (article 150-0 B ter of the French General Tax Code), this fund joins the NextStage Capital Entrepreneur range, composed of the FPCI NextStage Capital Entrepreneur I and II. This third vintage thus confirms the success of NextStage Capital Entrepreneur II.

NextStage Capital Entrepreneur III aims to support between 15 and 20 unlisted SMEs with proven business models and strong growth dynamics. The vehicle intends to invest in a privileged manner in French companies around three major disruptions identifiable in NextStage's strategies: digital transformation, smart health and environmental and energy innovation.

The A&O Shearman team was led by partner Antoine Sarailler, with counsel Benjamin Lacourt and associate Romane Chéry on the legal aspects as well as partner Guillaume Valois and associate Carole El-Beze on tax aspects.