OUR INVESTMENT
SOLUTIONS
A well-designed wealth strategy and personalised investment solutions
We work with our clients to design their wealth strategy. We conduct rigorous in-depth analysis of investment opportunities and, once investments are made, we provide consolidated reports throughout the holding period.
Our solutions cover the main asset classes: equities, bonds, money market instruments, real estate, structured products, private debt, private equity, etc.
Together with our clients, we select the most appropriate tax wrapper, such as life insurance (French or Luxembourg policies), endowment policies, equity savings plans (PEA), securities accounts and/or a shareholding structure in the client’s name or that of a family company or holding company.
Our process for structuring solutions and selecting products is based on a strict due diligence procedure. For collective investment funds and other equity and bond funds, we analyse factors such as performance history, management team stability, quality of reporting and web interface, and any risks of conflicts of interest. For each asset management company, we carry out a detailed assessment of their philosophy, investment process and the quality of their teams. If we identify any actual or foreseeable difficulties, we propose a strategy to reposition our clients’ assets.
We regularly monitor the performance of our clients’ positions and portfolios in order to identify opportunities for arbitrage or for the addition/sale of assets. We constantly seek new investment opportunities for our clients: every year, we meet a number of companies and fund managers from a range of business sectors and asset classes, always relying on Warrington Capital's independent judgement that makes us who we are.
With the crucial energy transition underway, we put a special focus on opportunities created by the most innovative and high-performing companies in the biogas, hydrogen and photovoltaic energy sectors, together with consulting firms specialising in energy efficiency and renewable energy storage solutions.
We also keep a keen eye on innovations and firms operating in digital technology, data management and artificial intelligence when putting together our investment solutions.
A specific case: the reinvestment of proceeds by a company manager following the contribution/transfer of his shares [article 150-O B Ter of the French general tax code]
If all or part of his company is being sold, a manager may be required to sell his shares (equities) to an investor or a buyer.
Beforehand, if the manager's shares are transferred to a company subject to corporate tax, the manager may, under certain conditions, benefit from a deferred taxation mechanism.
In cases where shares are sold in exchange for cash, if a manager has transferred his shares to his holding company within the past three years, the tax deferral mechanism no longer applies and the capital gain realised on the share transfer becomes taxable.
However, the tax deferral remains applicable if the holding company that receives the shares sells them on within three years from the transfer date and undertakes to invest at least 60% of the proceeds from the sale, within two years from the disposal date, in eligible companies such as those mentioned in the provisions of Article 150-O D ter, in the first sub-paragraph of paragraph b and in paragraph c of section II, no.3.
Depending on the manager's profile and risk appetite, together with any opportunities identified, a reinvestment strategy may be put in place, including equity investments in a wide range of sectors (healthcare, camping & caravanning, real estate development, energy efficiency, renewable energy production, data management, etc.)
Excerpt from Article 150-O B ter of the French general tax code (CGI)
“The taxation of the capital gain realised, directly or through a third party, in the context of a contribution of transferable securities, ownership rights, securities or rights relating thereto… to a company subject to corporate tax or an equivalent tax is deferred if the conditions provided for in III of this article are met… The deferral of taxation is terminated in the event of: 1. The sale for consideration, redemption, refund or cancellation of the securities received in consideration for the contribution; 2. The sale for consideration, redemption, refund or cancellation of the securities contributed, if this event occurs within a period, calculated from date to date, of three years from the contribution of the securities. However, the tax deferral is not terminated if the company receiving the contribution sells the securities within three years from the date of the contribution and undertakes to invest at least 60% of the proceeds from the sale, within two years from the disposal date:
a. In the financing of ongoing operating resources assigned to its commercial, industrial, handcrafted, professional, agricultural or financial activity within the meaning of Articles 34 or 35. Activities for the management of the company's own financial or real estate assets are excluded from this derogation;
b. In the acquisition of a portion of the capital of one or more companies engaged in an activity mentioned in paragraph a of point 2 above, subject to the same exclusion, and meeting the conditions set out in paragraph c, point 3, section II of Article 150-O D ter. The reinvestment thus made must give the company a controlling interest in each of these companies within the meaning of point 2, section III of this article;
c. In the cash subscription to the initial capital or capital increase of one or more companies meeting the conditions provided for in Article 150-O D ter, section II, in the first subparagraph of b and in paragraph c of point 3".
Disclaimer
Warrington Capital does not provide any tax or legal advice directly or indirectly. The information contained in this document and any other document issued by Warrington Capital or its officers does not constitute tax or legal advice. Before making any investment decision, investors are advised to make their own analysis of the legal and tax consequences of the investment in question and to ask their own legal or tax advisers to examine any related issues.
The mechanism described above and the articles of the French General Tax Code referenced are subject to change. Investors are advised to contact us to check if any changes have taken place since this website was last updated. WARRINGTON CAPITAL cannot be held liable for the content, use or direct or indirect consequences of the use of the information published on this website.
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