The fund, managed by Idinvest Partners, has achieved an initial close at $88m and is expected to reach its final close in 2017.

Bpifrance, the public investment bank of France, and insurance provider Allianz France today rejoined forces to launch a €150m ($165m) fund targeting early-stage France-based companies.

The vehicle, dubbed AFI IV, has secured €80m to date and is expected to reach its final target size sometime in 2017.

The AFI IV fund follows similar previous initiatives under the France Investissement Assureurs partnership, which launched in 2012 and also includes insurance companies Axa France, CNP Assurances, Crédit Agricole Assurances and BNP Paribas Cardif.

The fund will be managed by local venture capital firm Idinvest Partners. It will conduct lead investments as well as make smaller commitments and provide co-investment.

Nicolas Dufourcq, general manager of Bpifrance, said: “The initative we are launching with Allianz France today extends our efforts to support the growth of SMEs, which first began as part of the France Investissement Assureurs partnership in 2012.

“It is excellent news for the growth of unlisted companies that require assistance with further development and towards international expansion.” [translated from French by Global Government Venturing]