1 / 34

Introducing the European Investment Fund

Introducing the European Investment Fund. What is the EIF?. “. We’re the leading developer of risk financing for entrepreneurship and innovation across the EU. ”. Helping SMEs, micro-enterprises and European regions innovate and grow by making finance more accessible.

terris
Download Presentation

Introducing the European Investment Fund

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Introducing the European Investment Fund

  2. What is the EIF? “ We’re the leading developer ofrisk financing for entrepreneurshipand innovation across the EU ” HelpingSMEs, micro-enterprises and European regions innovate and grow by making finance more accessible Fulfillingour dual goal and pursuing EUpolicy objectives as well as financial sustainability Addressingmarket needs by acting as a countercyclicalinvestor in tough economic times Workingwith financial intermediaries across the 28 EU countries, EFTA and all Accession countries

  3. EIF’s Shareholders EIB (62.2%) European Commission (30%) Financial Institutions (7.8%)

  4. Our objectives “ To support smart, sustainable andinclusive growth ” Working with a broad rangeof financial intermediariesto provide credit enhancementand invest in venture andgrowth capital Being Europe’s cornerstone venture and growth capitalinvestor, leading catalystto promote SME lendingand microfinance Promoting cohesionand regional and social development Bringing together nationalpublic and private partners tosupport innovation and entrepreneurship Filling the financing gapsin Europe’s economy

  5. Helping businessesat every stage Public Stock Markets Portfolio Guarantees & Credit Enhancement Formal VC Funds & Mezzanine Funds Microcredit VC Seed & Early Stage Business Angels,Technology Transfer PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH DEVELOPMENT SME Development Stages HIGHER RISK LOWER RISK

  6. Our counterparts “ We work with a wide range ofcounterparts to support SMEs ” Fund providers and Mandators Intermediaries and counterparts micro-enterprises, SMEsand small mid-caps • European Investment Bank • European Commission • Member States • Managing Authorities • Funds of Funds • Corporates/private • Public institutes • Commercial Banks • Development &Promotional Banks • Guarantee Institutions • Leasing Companies • Fund Managers • Microfinance Institutions

  7. Our resources “ We manage resourcesfromdifferent stakeholders ” • National & Regional Funds • 20 European and regionalFunds-of-Fundsincluding Germany, Portugal, Spain, Turkey, UK • 14 Holding Fundssupported by structural fundsEUR1.3bn • European Investment Bank • Risk Capital Resources (RCR)EUR7bn • European Commission • Competitiveness and Innovation Framework Progr. (CIP) EUR1bn allocated to equity and guarantees • Risk-Sharing Instrument (RSI) EUR 270m • Progress MicrofinanceEUR 200m

  8. Our impact “ ” Over 1 Million SMEs supported in 30 different countries. “ EUR 11.7bn in equity and guarantees commitments have mobilised over EUR 70bn from partner banks, investorsand other market players. ” “ Broad European coverage,- 20 Funds-of-Funds/Holding funds,- 400 Venture and Growth Capital Funds,- 150 banks, guarantee and promotional institutions ”

  9. Helping start-ups “ Young, innovative companies are keyto our knowledge society, but they can beseen as risky and thus hard to fund ” Working withleading venture capital fund investors,backingventure funds including the top quartile We’re helping build an effective, liquid European Venture Capital market to supportthese start-ups; EIF has invested in 80% of active European Venture Capital

  10. Supportingestablished businesses “ ..by helping them to find the growth capital and mezzanine funding theyneed to keep growing ” We offera toolbox of growthcapital products tailored to their specific needs Our long-term mezzanine funding helps late stage tech andother more mature companies togrow and expand

  11. Involved throughoutthe business cycle TechnologyTransfer Accelerator Investing inVC funds Investing inGrowth Capital EIF Current Investment Focus Mezzanine Technology Transfer Proof of Concept Business Angels Seed Stage EarlyStage Business Angels Expansion/DevelopmentCapital LowerMid-Market Instruments to stimulateinnovation, competitivenessand cross-border investment Support VCecosystemanddecreasedependencyon public finance Catalyse hybrid debtfinance for growth Fill funding gap left by institutional investors Strategic Challenges European Commission Resources EIB / EIF Resources Member States / Private Sector Resources

  12. European Angels Fund – Key Points • Co-Investments with Business Angels and other non-institutional investors • Selection of Business Angels by the European Investment Fund (Adviser) • German Pilot (EUR 70m) operational since March 2012 – developed in close cooperation with Business Angels and BAND (Business Angels Network Germany) • Pan-European roll-out within the next 3–4 years EUROPEAN ANGELS FUND“Wings For Europe”

  13. How does the European Angels Fund work? • Maximum amount of freedom for Business Angels(general delegation of all investment decisions) • Trust relationship structure & Co-Investment Framework Agreement (CFA) • 50:50 matching of the capital invested by Business Angels(total volume available under each individual CFA: EUR 250k – 5m during the lifetime of the agreement) • No fees, but attractive profit-sharing (Carry payments) • Investment-related costs shared by EAF on pro-rata basis • Administrative workloadreducedto a mimimum EUROPEAN ANGELS FUND“Wings For Europe”

  14. EIF’sviews on the Nordicmarket • The Nordic market is oneofthemost mature in Europe • EIF has strongrecordofinvestmentsacrossthe region • Deep technologyleadershipavailable in several segments, e.g. Cleantech, Life Sciences, ICT/Mobile • High qualityuniversity and researchinstitutions • Recentsuccessstoriessuch as e.g. QlikTech, Skypeand Spotify, raisestheawarenessofinternational investors • Timing is right. European Commission and EIB Group ready to do more as marketneedsbecomeurgent

  15. EIF TT Transactions Research commercialisation / TT Sweden: KarolinskaDevelopment Business Creation and Acceleration Latvia: Imprimatur Capital, Seed and VC fund Sweden: Chalmers Innovation UK: Cancer Research Technology Lithuania: Strata/Mes Business Angel Co-investment fund UK: UMIP Premier Fund UK: IP venture fund UK Lithuania: Practica Incubator and follow-on fund Belgium KU Leuven CD3 Bulgaria : Eleven Start-up accelerator Start-up accelerators Belgium: NausecaBusiness Angel fund Bulgaria : LaunchUp Start-up accelerator 3T (Telecoms Institutes) France: Inria IT2: Digital technologies Elaia (Applied Maths – ENS, Dauphine, Collège de F, X) Greece: Openfund, Seed Fund Greece: Piräus Fund, Seed Fund

  16. Selected EIF Transactions: Research Commercialization and TT

  17. How do we help small and medium-sized enterprises? Section Two

  18. Encouraging lendingby sharing risk “ We provide a wide range of products addressingSME needs and helping our intermediariesincrease their lendingcapacity to SMEs ” Protectingour financial intermediaries’ capital by sharing the risk they take when lending to SMEs • Providing“First loss” guarantees,risk sharing instrumentsand credit enhancement • SMEs benefit from reduced collateral requirements • Guarantees are often providedfree of charge, which benefitsSMEs We make it easierfor financial institutions to transfer credit risk to capital markets

  19. Optimising EC resources “ We manage programmes for the EC that deploySME funding to promote entrepreneurshipand innovation across Europe ” • The Competitiveness &Innovation Programme(CIP SMEG) • Available budget of over EUR 600m • Committed budget of EUR 420mexpected to mobilise EUR 7bn • 53 transactions signed in 20 European countries • The Risk-SharingInstrument (RSI) • Pilot project • Supporting innovation • Launched in Dec 2011,targeting innovative and research-orientedSMEs and small mid-caps • Progress Microfinance • EUR 200m provided bythe EC and the EIB • Supporting micro-enterprises and thesocial economy • More than 50% committedat June 2012

  20. How do we helpmicro-enterprises? Section Three

  21. Why are micro-enterprisesso important? “ Micro-enterprises are a key partof European business ” 92% of enterprisesacross the EU aremicro-enterprises 99% of the start-ups created in theEU every yeararemicro- andsmall enterprises 33% of these start-upsare launched by unemployed people

  22. How do we help them? “ Our toolkit helps micro-entrepreneurs andself-employed, who find it hard to get finance,to start up and grow their businesses ” Complementary Initiatives • Progress Microfinance • Guarantees and cash products • Bank and non-bankintermediaries • Social impact / employment focus • EUR 200m provided by the EC and the EIB • Focus on EU-28 • EUR 120m committedso far in 12 Europeancountries Joint Action to Support Microfinance Institutions (JASMINE) TechnicalAssistance Joint European Resources for Micro to Medium Enterprises (JEREMIE) CIP Micro

  23. How do we cooperate withEU Member States & Regions? Section Four

  24. EIF-managed Fund-of-Funds and Holding Funds across Europe Fund-of-Fund Activity Holding Funds Supported by Structural Funds (JEREMIE) LITHUANIA: EUR 67.1m ROMANIA: EUR 100m MALTA: EUR 10m PACA (FR): EUR 20m SLOVAKIA: EUR 100m SICILY (I): EUR 60m SICILY ESF (I): EUR 15m UK FTF: GBP 200m ERP (DE): EUR 1000m LFA-EIF (DE): EUR 50m Dahlia (FR): EUR 300m NEOTEC (SP): EUR 183m PVCi (PT): EUR 111m iVCi (TR): EUR 160m • BIF (LT,LV,EE): EUR100m • DVI (NL): EUR 150m • PGFF (PL): EUR 90m BULGARIA: EUR 349m CALABRIA (I): EUR 45m CAMPANIA (I): EUR 90m CYPRUS: EUR 20m EXTREMADURA (ES) : EUR 10m GREECE: EUR 250m LANGUEDOCROUSSILLON (FR): EUR 30m Future initiatives LFF (LU): EUR 150m

  25. Deliveringfinancial engineeringwith Structural Funds • Disbursement • Up front • Irreversible • Local Holding Fund • Greater delegation to Local Authorities • Management/administration are outsourced toa Holding Fund Manager which is selected bythe Member State / region Holding Fund Manager • Role of the Holding Fund Manager • Structure investments, select Financial Intermediaries • Administer, monitor & report on investments • Attract a syndicate of investors • Closely collaborate with national/regional authorities European Commission ERDF – DG Regio EU Level Managing Authority National or regional Level Holding Fund / Holding Fund Manager Financial intermediaries National/ Regional/ Local Level Regional/ /Local Level SMEs and micro-enterprises

  26. Selected Financial Intermediaries working with EIF under JEREMIE A network of private investors to manage and mobilise structural funds

  27. What next? Section Five

  28. Equity Instrument Development 2013 and beyond Social Impact Accelerator (SIA) EIF crisis response toolbox Mezzanine Facility for Growth Corporate Innovation Platform Horizon 2020 / Equity for Researchand Innovation TT-POC-Start-up COSME / Equity for Growth European Angel Co-Investment Fund EIF as entrusted entity for Horizon 2020 / COSME Tech Transfer Proof of Concept Business Angels Seed Stage EarlyStage Expansion/DevelopmentCapital LowerMid-Market European Commission Resources EIB / EIF Resources Member States / Private Sector Resources

  29. Guarantee Instruments Development 2013 and beyond • Risk tolerance Deal rationaleFinancial InstitutionsPricingLeverageSelf-sustainabilityTarget Beneficiaries *First lossproductguarantee SMEG(First Loss) FLPG(First + 2nd Loss) Credit Enhancement(Second Loss) RSI(uncapped) ABS wrap(Senior)

  30. Strengtheningpartnershipswithstakeholders • European Investment Bank • Invest additional Equity and Mezzanine Funds arising from EIB Capital Increase • Optimise joint operations to provideliquidity, risk sharing and capital relieftoSME banks • European Commission 2014-2020 • Deploy “Competitiveness for SME’s” (COSME) programme (DG Enterprise) • Key role in financing innovation through Horizon 2020 (DG Research) • Expand microfinance and socialinvestment (DG Employment) • Member States, Accession Countries and national institutions • Equity Fund of Fund tool box • Structural fund instruments and management • Advisory / know-how transfer • Joint initiatives with Development Banks and Guarantee Institutions across the EU

  31. Elaborating new partnership models with Member States and national institutions Venture Capital Guarantees EIF as delegatedFund Manager Examples Examples JEREMIE Holding Funds (Greece, Romania, Slovakia, Malta) UK FTF, ERP Germany, Neotec,IVCi, PVCi, Dutch VentureInitiative, Luxembourg Future Fund Western Balkans Guarantee Fund Co-investingPartnerships European Angels Fund BGK Poland, Italian Confidi, German Förderbank, ICO Spain Complementarityand MutualReliance BMWiGermany, CDC France, FondoItalianod’Investimento, Knowledge Transfer Strategic Partnership AWS Austria KfW OSEO France

  32. Partnershipswith national Institutions: creating infrastructures “ The Baltic Innovation Fund – a unique partnership built upon the success of the Structural Fund activities ” • Strong market feedback and international recognition EIF’s first multi-country ‘Fund of Funds’ EUR 100m with EUR 40m fromEIF and EUR 20m from 3 key national institutions Over EUR 200m catalysedto focus on enhancing the availability of VC and PE financing for early and growth stage companies in the Baltics Cooperative development process led by EIF and involving public andprivate players A strategy designed to create greater levels of private sector equity investments across the Baltic region

  33. Expanding thegeographical reach “ Reaching 11 additional Member Statesand regions by the end of 2015 ” Existing mandates • Objectives • Actively pursue managementrole in existing countries andnew regions • Diversify source of capital • Leverage public funds • Buildsustainablemarkets Structural Funds / IPA Initiatives for 2013 - 2015 Member States funds of funds

  34. Contact details • David Yormesor • d.yormesor@eif.org • European Investment Fund96, boulevard Konrad AdenauerL-2968 Luxembourg • +352 2485 1

More Related