Pan-EU funds of funds
The new European Commission President, Jean-Claude Juncker, launched an Investment Plan for Europe on 26 November 2014. The Plan has the objective to mobilise finance for investment using resources from the EIB and from several EU programmes of the EU budget, including Horizon 2020 (the EU Framework Programme for Research and Innovation) and COSME (the EU Programme for the Competitiveness of Enterprises and SMEs).
These resources are earmarked within a European Fund for Strategic Investments (EFSI) to mobilise at least EUR 315 billion in additional public and private investment to the economy. This Fund also has the objective to support risk finance for SMEs, relying on the European Investment Fund.
Along with the programmes of the EU Budget, this new Fund and the accompanying regulation could provide an important part the legal framework for Invest Europe’s fund-of-funds proposal. Public and private will together run an equity facility to provide capital through financial intermediaries to innovative enterprises, primarily in the form of venture capital.
Invest Europe position
For the venture capital industry to become self-sustaining and globally competitive the number of institutions with the skill and capacity to invest in European venture capital funds must be broadened and diversified.
Invest Europe advocates a public-private partnership by which the equity component of these programmes could be used to attract private sector capital from international institutional investors, via venture capital funds, into Europe’s most innovative companies.
More specifically, Invest Europe proposes the creation of private sector-managed, pan-European, fund-of-funds with a high commitment to venture capital. Under this scheme the EU Budget would provide cornerstone investment in the funds with this capital to be matched by private money. EU funding for a market-would act as a catalyst for private sector investment.
With negotiations on-going on the choice of innovative projects for the new EFSI, Invest Europe is now looking for the European institutions to use this Funds resources to launch such a scheme.
Complementary of EFSI and ESIF project financing >
February 2016, European Commission
Regulation on European Venture Capital Funds (EU) No 345/2013 >
April 2013, European Commission
Venture Capital White Paper >
March 2010, EVCA