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EU Member States implement the JEREMIE initiative by establishing a Holding Fund funded through their Structural Funds. The Holding Fund can be managed either by the EIF or by other financial insti-tutions, according to the EU Structural Funds legis-lation applicable (EC Regulation 1083/2006 and Implementation Regulation 1828/2006).

Managing Authorities can award management either directly to the EIF or any national institution or indirectly by way of tender to a financial institu-tion through a service contract.

This allows the Managing Authorities to delegate some of the tasks required in implementing JEREMIE­ – such as establishing specific criteria for making investments, appraising and recommending operations, negotiating contractual arrangements, monitoring and reporting on the performance of the Holding Fund – to appropriate professionals.

The Holding Funds can be set up either as a “ring-fenced block of finance” managed by the Holding Fund manager on behalf and in the name of the Man-aging Authority, or as an independent legal entity (Special Purpose Vehicle – SPV). The choice of the legal structure depends very much on the level of sophistication of the JEREMIE Holding Fund and on the respective national legal framework.

An Investment Board allows the Managing Authority (which manages the EU Structural Funds) to influ-ence the strategy and decision-making of the Hold-ing Fund.

Acting as an umbrella fund, the Holding Fund will partner a wide spectrum of local SME financial institu-tions such as SME finance operators, venture capital funds, loan funds, technology transfer vehicles, micro­ finance providers, banks and guarantee funds. The funds made available to these financial institutions by the Holding Fund will be used to finance the creation and development of SMEs.

What is a JEREMIE Holding Fund?

European Commission ERDF / ESF

Financial intermediaries

Financial intermediaries

Financial intermediaries

Financial intermediaries

SMEs Microfinance

beneficiaries

The manager is selected by member state/region

Local holding fund

•  Greater delegation to Local Authorities

•  Management/administration are outsourced to HF Mgr.

Role of the HF Manager

•  Structure investments, select Financial Intermediaries •  Administer, monitor & report on investments

•  Attract a syndicate of investors •  Closely collaborate with national/ regional authorities

Managing Authority

Holding Fund (HF) / HF Manager