EDF launches France Nucléaire 2 to support key SMEs in the sector
EDF and several key industrial partners are renewing their support for the French nuclear industry with the launch of the France Nucléaire 2 fund. Initially endowed with €100 million, this new investment tool aims to support strategic SMEs and mid-caps in the sector, building on the success of the first fund launched in 2021. Open to new private co-investors, FFN 2 seeks to strengthen its capacity to meet the challenges of the new nuclear era.
On May 13, EDF announced the launch of the France Nucléaire 2 (FFN 2) fund, which aims to invest in companies with critical know-how essential to the nuclear sector. Its predecessor financed 11 investments between 2021 and 2024, with a total amount of €100 million. The new investment vehicle is backed by a group of major industrial players led by EDF. It intends to capitalize on the success of the first fund created in 2021 by opening up more widely to private co-shareholders.
Accordingly, Orano, TechnicAtome, and Framatome joined forces with EDF to complete the first financing round of FFN 2, alongside Siparex, a French private equity specialist already managing the first fund. It currently holds €100 million in assets, with the objective of tripling this amount by bringing in other industrial players and private institutional investors.
Jointly owned by the French State and EDF, the original France Nucléaire fund supported SMEs and mid-caps operating in various critical areas for the sector, such as the engineering company Vulcain, which is involved in designing buildings for the EPR2 reactors; glove manufacturer Piercan, specialized in protective equipment; and electrical equipment manufacturer JST Transformateurs. The fund invested with a ten-year horizon.
Continuing the effort with new partners
FFN 2 announced its first investment at launch: Ekoscan Integrity Group, a provider of non-destructive testing solutions. The company notably worked with EDF on stress corrosion cracking issues, as reported by L’Usine Nouvelle. The fund is investing alongside another French private equity firm, Eurazeo, as well as ALIAD, the Air Liquide Group’s venture capital arm — as Ekoscan is also working on hydrogen storage integrity.
Such co-investment setups, which also existed under the first fund (for instance, with robotics specialist Siléane), reinforce the financial backing provided by the fund by leveraging applications of interest to other industrial sectors. FFN 2’s strategy is to potentially include such co-investors in its shareholding structure, enabling it to reach its target size of €300 million and to increase the amount allocated per investment (from €20 million in the first fund to €50 million).
As the industry prepares to meet the surge in demand for new nuclear projects, the fund helps equip stakeholders with the means to “prepare for the future,” as emphasized by Xavier Ursat, EDF Group Executive Director in charge of Strategy, Technologies, Innovation and Development, in the press release accompanying the launch of FFN 2. ■