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Business year 2011
13
of support to the market by backing teams early in their
fundraising process. During the year, EIF was instrumental
in deploying reliable and smart sources of funding to early
stage funds, catalysing closure at critical fund sizes and
attracting private sector co-investors. In parallel, it invested
in growth funds (lower mid-market and mezzanine) and
backed first-time teams and emerging players in smaller or
less developed markets.
Throughout the year, EIF worked in close cooperation with
its mandators and other third parties to increase resources
available to SMEs and achieve maximum impact in a
difficult market. As a result, a EUR 1bn increase of the EIB
Risk Capital Mandate (RCM) was signed as well as the
doubling of the LfA Förderbank Bayern (LfA) resources.
Intense work has taken place with the European Commis-
sion to pave the way for the next programming period
beginning in January 2014. These increased allocations
constitute an endorsement from mandators of EIF’s capa-
bility to respond to market needs.
Additionally, EIF has closely monitored the private equity
ecosystem, seeking opportunities to develop new and pio-
neering financing instruments in order to provide support
for parts of the market currently not covered by EIF. New
sector-specific fund-of-fund initiatives involving corporate
and strategic investors and new products either address-
ing the needs of academic
institutions or giving access to
non-institutional investors are
planned to be developed.
Some pi lot s were pu t i n
place during 2011, with the
objective of enlarging EIF’s
base of co- investors and to
seize market opportunities by
enhancing the activity.
EIF is committed to regional development. By complement-
ing national support schemes for SMEs, the effectiveness
of EU budget resources is optimised, attracting additional
capital from other investors and often helping to de-risk
transactions. As such, throughout 2011, EIF deployed
specific financing solutions for the benefit of European
Equity
General overview
EIF is the reference catalytic investor in Europe. Its aim, in
line with EU policies and objectives, is to stimulate entre-
preneurship and innovation by contributing towards the es-
tablishment of a sustainable European venture and growth
capital market. To achieve this, EIF addresses market gaps
and opportunities by working with like-minded private and
public investors. It demonstrates a market-oriented business
approach, actively investing in innovative SME-focussed
funds across a large number of European countries. By
committing to early stage and growth funds EIF provides
risk capital to European businesses and assists them through
their life cycle.
EUR 1.1bn
of EIF commitments
2011 was another record year for EIF. Volumes of equity
signatures soared to an all time high of EUR 1.1bn, a 20%
increase compared with 2010. This development emphasis-
es EIF’s counter-cyclical intervention and its key role as the
European cornerstone investor, providing the highest level
5 919
Stage focus
Total commitments at 31 December 2011 – in EUR m
Tech Transfer
Seed
Start-up/Early stage
Expansion VC
Balanced VC
Small Cap Private Equity
Growth
Mid-Market Private Equity
Balanced Private Equity
222
69
1 714
1 045
118
1 617
222
419
493
early stage
growth capital