2009-07-24
EIF selects the first financial intermediaries for Lithuania JEREMIE Holding Fund
The EIF has in principle chosen UAB BaltCap Management to manage a new risk capital fund dedicated to investing into Lithuanian SMEs.
This Risk Capital fund will have a target size of €20 million and will provide start-up and expansion financing for micro, small and medium size companies with growth potential located in Lithuania, taking equity stakes between EUR 0.3-3m with the aim to build a diversified portfolio of circa 10-15 SMEs. The investments focus will be firms with significant upside potential but high risk; and consequently with the efforts of professional and committed management team, investee companies might constitute success stories or market leaders.
In addition, EIF has selected UAB Strata and Mes Invest to manage an €8 million Business Angels Co-investment Fund, investing together with "business angels" into SMEs to help to grow these companies by adding significant value not only with additional financing but through strengthening corporate governance, improving operating efficiencies, etc. This activity will also encourage "business angels" to operate a network and share co-investment opportunities as well as will increase acceptance and knowledge of risk capital as means of finance among local entrepreneurs.
This decision brings towards a close a process known as a ‘call for expression of interest' which attracted applicant companies from Lithuania, Latvia, Estonia and the UK. In total 18 applications were received for Risk Capital Fund Instrument and 5 applications for Business Angels Co-investment Fund. The EIF conducted a thorough analysis process to select the best applicants against set criteria and using the EIF's Risk Capital expertise built up through investing into EUR 3.7 billion into over 300 Funds across Europe over the past 15 years.
The finalisation of funds' set-up is subject to final legal due diligence and the successful raising of private funds by the fund managers in the second half of 2009.
The EIF is also in advanced stages of concluding a similar process for the selection of the second financial intermediary to manage another Risk Capital Fund dedicated to Lithuanian SMEs. Once the selection process is completed and full EIF Board approval is obtained, a separate announcement will follow.
Source: European Investment Fund
This Risk Capital fund will have a target size of €20 million and will provide start-up and expansion financing for micro, small and medium size companies with growth potential located in Lithuania, taking equity stakes between EUR 0.3-3m with the aim to build a diversified portfolio of circa 10-15 SMEs. The investments focus will be firms with significant upside potential but high risk; and consequently with the efforts of professional and committed management team, investee companies might constitute success stories or market leaders.
In addition, EIF has selected UAB Strata and Mes Invest to manage an €8 million Business Angels Co-investment Fund, investing together with "business angels" into SMEs to help to grow these companies by adding significant value not only with additional financing but through strengthening corporate governance, improving operating efficiencies, etc. This activity will also encourage "business angels" to operate a network and share co-investment opportunities as well as will increase acceptance and knowledge of risk capital as means of finance among local entrepreneurs.
This decision brings towards a close a process known as a ‘call for expression of interest' which attracted applicant companies from Lithuania, Latvia, Estonia and the UK. In total 18 applications were received for Risk Capital Fund Instrument and 5 applications for Business Angels Co-investment Fund. The EIF conducted a thorough analysis process to select the best applicants against set criteria and using the EIF's Risk Capital expertise built up through investing into EUR 3.7 billion into over 300 Funds across Europe over the past 15 years.
The finalisation of funds' set-up is subject to final legal due diligence and the successful raising of private funds by the fund managers in the second half of 2009.
The EIF is also in advanced stages of concluding a similar process for the selection of the second financial intermediary to manage another Risk Capital Fund dedicated to Lithuanian SMEs. Once the selection process is completed and full EIF Board approval is obtained, a separate announcement will follow.
Source: European Investment Fund
