Private equity transactions are more complex than traditional corporate acquisitions, often involving layers of investors, co-investment structures, and shared control. While France focuses FDI notifications on the General Partner (GP), complications arise when Limited Partners (LPs) or co-investors hold veto rights or other forms of influence. These structures can trigger FDI review even when foreign investors do not directly control the target, leading to uncertainty about who must file, when, and in how many jurisdictions.

These challenges do not end at the deal’s signing. Once a fund owns a business, any follow-on investments in sensitive sectors may also require new FDI approvals - especially if the company is now considered “foreign-controlled.” Regulatory commitments, such as maintaining certain operations in France or limiting investor rights, can further restrict how funds manage their investments. These rules also impact how equity is transferred post-deal or how firms approach growth through acquisitions.

At the exit stage, FDI screening can affect who can buy the business and on what terms. Foreign bidders may reduce their offers or drop out due to potential regulatory delays or restrictions, while local buyers may face fewer hurdles. This can influence deal value, timing, and competitive dynamics. For PE firms, this underscores the need to factor FDI strategy into every stage of the investment cycle - from entry to exit.