Fixed rates at CARINVEST GROUP: How are returns paid?

At CARINVEST GROUP, the contract specifies the annual rate of return, the investment term and the payment schedule. The investment schedule in Appendix B also sets out the expected repayment timeframe. The rate remains fixed throughout the term of the Distribution and Capitalisation options. The SEP Performance option has separate terms.

Distribution: monthly payments

Under the Distribution option, 60% of the amount invested is subscribed for in shares and 40% is paid into a shareholder loan account. The annual rate is 7% for investments below €100,000 and 8% for investments of €100,000 or more. Once set in the contract, the rate applies throughout the investment term.

Payments are made monthly to the investor’s bank account under the société en participation (SEP) arrangement. The first payment is scheduled for 30 days after the contract has been signed and the funds received.

Capitalisation: annual payments

Under the Capitalisation option, 100% of the amount invested is subscribed for in shares. The annual rate is 8%, regardless of the amount invested, and remains fixed throughout the term.

Payments are made once a year to the investor’s bank account under the SEP arrangement. Capitalisation is the name of the option. The annual payments are not automatically reinvested.

What fees apply to both options?

The only fees are a subscription fee of 1.2%, calculated on the amount invested, and a €30 SEP membership fee. Both are payable once, at subscription. There are no management or exit fees.

What is the SEP, and what role does it play?

A société en participation (SEP) is an arrangement that allows participants to carry on a joint activity under an agreement. The agreement defines how the arrangement operates and how its results are shared. A SEP is unregistered and has no separate legal personality. Article 1871 of the French Civil Code

Under our model, the French company named in the offer receives the subscription funds. Returns are paid under the SEP arrangement, monthly under Distribution or annually under Capitalisation. The participant’s share of commercial profits falls within the French tax category known as bénéfices industriels et commerciaux (BIC, or industrial and commercial profits) where that regime applies. The tax treatment depends on the SEP’s tax regime and the participant’s circumstances. French tax authority guidance on the taxation of partnership profits

How does the IR-PME tax reduction apply to each option?

For the CARINVEST GROUP offers concerned, investors must select the six-year term to qualify for the French IR-PME income tax reduction, subject to the applicable eligibility and shareholding requirements. The reduction is calculated on the eligible amount subscribed for in shares. Amounts paid into a shareholder loan account are excluded. French public service guidance on IR-PME eligibility

For the same €10,000 investment, the amount that may qualify for the tax reduction is €6,000 under Distribution and €10,000 under Capitalisation, before applying the relevant limits and other tax conditions. For the same amount invested, Capitalisation therefore provides a larger potential basis for the tax reduction.

Does a fixed rate constitute a guarantee?

The fixed rate determines the return specified in the contract. Unlisted shares do not have a daily quoted market price, but their value can change with the company’s circumstances. Payment depends on the company’s ability to meet its obligations. AMF guidance on investing in shares

A guarantee covers a specific obligation, such as repayment of part or all of the capital at a specified date. To understand what it covers, check who provides it, the amount covered, when it applies and under what conditions. Even when capital is guaranteed, returns can still vary if they fall outside the scope of the guarantee. AMF guidance on guarantees in structured investments

French property investment funds known as SCPIs, whose capital is not guaranteed, illustrate the difference between income distributions and overall performance. In 2025, the ASPIM reported an average distribution rate of 4.92% and overall performance of around 1.5% after accounting for the average decline in unit prices. ASPIM, key SCPI figures for 2025

What does the contract say about repayment?

The fixed rate determines the return specified in the contract. The buyback commitment sets out how shares may be transferred under the terms of the shareholders’ agreement. Appendix B specifies the expected repayment timeframe. Investors remain exposed to the risk of capital loss.

Our team can meet with you at 23 rue d’Antibes in Cannes to explain both options and review the contract and investment schedule for the offer you are considering. Book an appointment with CARINVEST GROUP

Investing involves a risk of partial or total loss of capital and a risk of illiquidity.