French FSI fund could invest $4 bln a year

* Eyes 2-3 bln eur annual investment

* To invest up to 1.5 bln eur from now until 2009

* Looking at five possible biotech investments

* Targeting 10 pct return on investments

(Adds detail, background)

By Julien Ponthus and Matthieu Protard

PARIS, June 4 (Reuters) - France's FSI strategic investment fund, set up last year to help the country's companies deal with the financial crisis, is aiming to invest 2 billion to 3 billion euros ($2.8 million to $4.3 billion) a year, its head told Reuters.

"The FSI will have the means allowing it to invest on average between 2 and 3 billion euros a year," FSI head Gilles Michel said in an interview.

In February, the FSI took a 2.35 percent stake in car parts maker Valeo (VLOF.PA), while last month it bought a stake of around 8 percent in digital security company Gemalto (GTO.PA). [nLT425478].

Michel said the FSI was aiming to invest up to 1.5 billion euros from now until the end of 2009.

He added that the fund was also looking at five possible investments in the French biotechnology sector, which would be of a relatively small size.

"We're looking at biotech investments of just over 10 million euros per company," added Michel.

He said these biotech investments could be undertaken with Mubadala, the Abu Dhabi government's investment arm that has signed a partnership deal with the FSI fund.

"Our partnership is in the process of taking shape and some joint committees will be formed in June," said Michel.

Michel said the FSI fund was targeting an average of a 10 percent return on its investments and added that the fund could also sell some of its stakes in companies if it felt it could make a profit.