European Investment Fund

Forum Binary Venture CapitalBucharest September 26

WHEN? Created in 1994.

EU specialised financial body for SMEs, acting through: Venture Capital (fund of funds) and Guarantees for SME portfolios

WHO ?

Subscribed capital of EUR 2 billion : - 60.5 %: European Investment Bank - 30 %: European Commission- 9.5 %: 28 EU financial institutions

WHY ?

Art 2 : « pursuit of Community objectives » such as growth, employment, knowledge-based economy, innovation, regional developmentArt 24 : « generate an appropriate return on its resources  »

EIF at a glance

EIF SME Portfolio Guarantees allow financial institutions to…

• Expand lending capacity and market share in the SME segment and freeing regulatory capital at banks

• Reduce cost of regulatory capital by benefiting from a 20% risk-weighting on EIF-guaranteed assets under the EU’s solvency ratio directive.

• Reduce risk provisioning on portfolio and reduce final losses on portfolio in risk sharing schemes

• Triple-A rating by Standard & Poor’s and Moody’s

Venture capital- private equity portfolio: sector/stage breakdown (June 2003)

Tech61%

Generalist 20%

Tech-regional7%

Regional12%

Expansion23%

Early-stage9%

Replacement capital

2%

Buyout65%

Pre IPO1%

EIF portfolio: sector breakdown

EIF portfolio: stage breakdownEuropean PE: stage breakdown

Source EVCA

Seed5%

Start-up 42%

Expansion37%

Replacement capital

3%

Buy-out12%

Pre Ipo1%

SWEDEN 3%

SPAIN 8%

PORTUGAL 1%

NETHERLANDS 1%

PANEU & MULTI 17%

LUXEMBOURG 1%

ITALY 12%

IRELAND 4%

GREECE 1%

UK 14%

AUSTRIA 2%

BELGIUM 1%

DENMARK 2%

AAC COUNTRIES 3%

FINLAND 4%

FRANCE 15%

GERMANY 10%

VC/PE geographical breakdown (August 2003 - Eur 2.5 bn)

Develop operations in Acceding and Accession Countries. EIF’s activities (guarantees and VC) in the AAC will take place in close cooperation with local financial institutions and in partnership with EBRD/EIB

Develop business with shareholders, cooperation agreements or joint ventures

Management of new mandates (and increase of existing ones, e.g. EIB)

Develop new advisory services to third parties

2003 – 2005: The way forward

Contact us

European Investment Fund

www.eif.org

info@eif.org

Tel +352 42 66 88 1

Fax +352 42 66 88 200