Supporting innovation and private sector investment in Norway

Supporting innovation and private
sector investment in Norway
Oslo, 11 December 2014
EIF at a Glance
“
We provide risk financing to stimulate entrepreneurship and innovation in
Europe in 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 to SMEs
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Geographic Focus: EU 28,
EFTA, Candidate Countries
Distribution through Banks
and Funds (Full delegation)
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Founded in 1994
Multilateral Development Bank
(MDB) status
Basel II 0% risk weighting
AAA ratings (Moody’s/S&P/Fitch)
Shareholding Structure:
 EIB: 63.7%, EIB shareholders: 28 EU Member States
 EC: 24.3%
 24 European Financial Institutions: 12 %
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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
”
European Commission National & Regional
Funds
 COSME allocated to
equity and guarantees
 Risk-Sharing Instrument
(RSI)/InnovFin
 Progress Microfinance
 SME initiative
 WB EDIF*
13 funds-of-funds
including in the Balkans,
Germany, Poland,
Portugal, Spain, Turkey,
UK
14 Holding Funds
supported by struct. funds
*WB EDIF: Western Balkans Enterprise Development & Innovation Facility
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EIF’s commitments at
31.12.2013
“
We are the prime provider of SME financing in Europe
EUR 7.9bn
Equity
”
EUR 36.8bn
EUR 42bn
EUR 466m
EUR 146m
EUR 5.6bn
Guarantees/securitisation
Microfinance
480 venture and growth funds
306 banks, guarantee and promotional institutions
27 funds of funds, regional and national initiatives and holding funds
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Helping businesses at every
stage:
EIF standardized and customizable products
Public Stock Markets
Portfolio Guarantees & Securitization and
Credit Enhancement
Formal VC Funds, Mezzanine Funds,
Co-Investment Funds
VC Seed & Early Stage
Microcredit & Portfolio Risk Sharing Loan
Business Angels,
Technology Transfer, Accelerator and Seed Funds
PRE-SEED PHASE
SEED PHASE
START-UP PHASE
EMERGING GROWTH
DEVELOPMENT
SME Development Stages
HIGHER RISK
LOWER RISK
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Debt Products
6
Guarantee Instruments
Development
Portfolio Tranche
Form
Leverage
SME Guarantee Facility
First Loss
Direct guarantee
Counter - guarantee
= 14
First Loss + Second Loss
Direct guarantee
= 5 to 7
Risk Transfer
Product
FLPG*
Credit Enhancement
RSI
ABS wrap
Risk tolerance
Deal rationale
Financial Institutions
Second Loss (mezzanine)
Direct guarantee
Blended (uncapped)
Direct guarantee
Counter-guarantee
Funding Senior
Direct guarantee
= 6 to 8
Pricing
= 5 (on EC
FLPG)
Leverage
= 2 to 3
Target Beneficiaries
Self-sustainability
* First Loss Portfolio Guarantee
Expected
Loss
SME GF
(First Loss)
Expected
Loss
FLPG
(First + 2nd Loss)
Expected
Loss
Credit Enhancement
(Second Loss)
Expected
Loss
InnovFin/RSI
(uncapped/pari passu)
Expected
Loss
ABS wrap
(Senior)
7
Equity Investments
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EIF Current
Investment Focus
Equity: Involved throughout
the business cycle
Technology
Transfer Accelerator
Investing in
Growth Capital
Mezzanine
Technology Transfer
Proof of Concept
Business Angels
Seed Stage
Strategic Challenges
Investing in
VC funds
Provide instruments to
stimulate innovation,
competitiveness
and cross-border investment
Early
Stage
Business Angels
Fill funding gap left by
institutional investors
Expansion/
Development
Capital
Support VC
ecosystem
and decrease
dependency
on public finance
Lower
Mid-Market
Catalyse hybrid debt
finance for growth
Business development
European Commission Resources
EIB / EIF Resources
Member States / Private Sector Resources
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EIF in Norway
(looking to do more)
Guarantee Activities:

Agreements under MAP/CIP with Innovation Norway and Cultura
Sparebank
Equity Activities:
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Capricorn Cleantech Fund
First tech transfer with SINTEF Ventures IV
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Some of the high potentials
powered by our funds / BAs
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Contact Details
Alessandro Tappi
Vincent van Steensel
Director
Guarantees, Securitisation & Microfinance
Phone:
(+352) 248 581 352
email: [email protected]
Head of Portfolio Guarantees
Guarantees, Securitisation & Microfinance
Phone:
(+352) 248 581 351
email: [email protected]
Roland Kampe
Senior Structured Finance Manager
Guarantees, Securitisation & Microfinance
Phone:
(+352) 248 581 271
email: [email protected]
European Investment Fund
37B, avenue J.F. Kennedy
L-2968 Luxembourg
www.eif.org
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