EIF Equity Products Finland 5 February 2015 1
EIF at a Glance We provide risk financing to stimulate entrepreneurship and innovation in Europe, supporting over 1.5 Million SMEs over 20 years EU specialised institution for SMEs risk financing, offering a large array of targeted products to support SMES ranging from venture capital to guarantees and microfinance Geographic Focus: EU 28, EFTA, Candidate Countries Distribution through Banks and Funds (Full delegation) Founded in 1994 Multilateral Development Bank (MDB) status Basel II 0% risk weighting AAA ratings (Moody s/s&p/fitch) Shareholding Structure: EIB: 58 %, EIB shareholders: 28 EU Member States EC: 30 % 26 Financial Institutions: 12 % * from (14) European Union Member States, and Turkey 2
Our resources We manage resources on behalf of a variety of stakeholders European Investment Bank Risk Capital Resources (RCR) EIB Group Risk Enhancement Mandate (EREM) Progress Microfinance *WB EDIF: Western Balkans Enterprise Development & Innovation Facility European Commission COSME allocated to equity, securitisation and guarantees H2020/InnovFin Progress Microfinance SME initiative WB EDIF* National & Regional Funds 13 funds-of-funds including in the Balkans, Germany, Poland, Portugal, Spain, Turkey, UK 14 Holding Funds supported by struct. funds 3
EIF s commitments at mid 2014 We are the prime provider of SME financing in Europe EUR 42bn EUR 34bn 24,027 22,499 EUR 7.9bn 4,160 3,838 Total Signed Growth Capital 18,624 Catalysed Volumes Early Stage EUR 5.1bn 3,402 1,732 Total Signed EIF Own Resources/Securitisation 11,458 Catalysed Volumes Mandates Equity Guarantees/securitisation Microfinance 4
EIF Model 5
Strategic Challenges EIF Current Investment Focus Equity: Involved Throughout The Lifecycle of the Enterprise Technology Transfer Accelerator Investing in VC funds Investing in Growth Capital Mezzanine Technology Transfer Proof of Concept Business Angels Seed Stage Early Stage Business Angels Expansion/ Development Capital Lower Mid-Market Provide instruments to stimulate innovation, competitiveness and entrepreneurship Fill funding gap left by institutional investors Support VC ecosystem and decrease dependency on public finance Business development Catalyse hybrid debt finance for growth European Commission Resources EIB / EIF Resources Member States / Private Sector Resources 6
Front Office Organisational Chart Head of Equity Investments MM GS&M Technology & Innovation Lower Mid-Market Front Office Business Support Venture Capital & Impact Investing LMM Western Europe Business Angels & Tech Transfer LMM Northern, Eastern & Southern LMM Services Unit MM: Mandate Management GS&M: Guarantees, Securitisation and Microfinance 7
Equity portfolio All Resources 31.12.2014 Well-diversified portfolio 220 LMM funds Technology Transfer Accelerator 3.1% 286 VC/TTA funds EUR 5.3bn committed (EUR 2.8bn disbursed, EUR 1.3bn repaid, EUR 1.4bn net paid-out) EUR 32.2bn total fund sizes Lower Mid Market 50.1% Venture Capital / TTA 49.9% EUR 5.3bn committed (EUR 3.0bn disbursed, EUR 1.0bn repaid, EUR 1.9bn net paid-out) EUR 21.9bn total fund sizes > 1,500 companies > 3,000 companies Figures as of 31.12.2014
2014 Volumes equity commitments Signatures Catalysed volumes EUR m Dec-14 Actuals CO P 2014 % achieved * Dec-13 Actuals Dec-14 Actuals CO P 2014 % achieved * TT 111 120 93% 111 199 200 99% 365 VC 638 565 124% 590 1,780 1,590 112% 2,294 Dec-13 Actuals SIA 6 75 8% 10 25 150 17% 0% 23 BA 23 50 46% 12 44 110 40% 24 LMM 875 830 105% 746 6,219 4,400 141% 4,443 Total 1,654 1,640 104% 1,468 8,267 6,450 128% 7,148 Number of transactions 74 107 69% 68 * Seasonally adjusted 9
EUR bn EIF VC Catalytic effect against total fundraising Venture Capital Fundraising - Europe (EUR k) 9 60 % 8 7 50 % 6 40 % 5 30 % 4 3 20 % 2 1 10 % 0 2007 2008 2009 2010 2011 2012 2013 0 % Total fundraising - Venture Capital (source: EVCA) EIF catalyzed funds - Venture EIF catalytic share EIF catalyzed funds refer to the total fund size of funds in which EIF invested
Strategic focus Investment focus Resources Equity strategy - 2014 and beyond 1 Corporate Innovation Platform Social Impact Accelerator European Angels Fund RCR Co-investments with funds managers Regional/National Investment structures (Spain, Portugal, France, Germany, Turkey, Netherlands, Estonia, Sweden, Baltic, Luxembourg..) TTFF COSME Equity for Growth Horizon 2020 2 Tech Transfer POC Seed Stage Early Stage Late VC Expansion/ Development Capital Lower Mid-Market 3 Instruments to stimulate (social) innovation, competitiveness, social cohesion and crossborder investment Fill funding gap left by institutional investors Support VC ecosystem and decrease dependency on public finance Catalyse hybrid debt finance for growth EC EIB/EIF Private Member States 11
EIF equity volumes forecast 506 funds in portfolio Absence of institutional investors requires continued expansion of EIF commitments (>20% of market in 2012/13) Early signs of cyclical upturn Number of transactions: 74 121 147 163 2015-2017 forecasts might be affected by the Juncker plan 12 12
Some of the high potentials powered by our funds / BAs
Contact details Nitan Pathak Institutional Business Development Phone: (+352) 621 339 149 email: pathak@eif.org