Evaluation of EIB Group equity and quasi-equity support for small businesses and mid-caps

The EIB Group offers a broad range of – direct and indirect – equity and quasi-equity instruments, each targeting fast-growing innovative firms at various stages of their life-cycle. This evaluation provided a comprehensive assessment of this activity.

Overall, the EIB Group’s support to equity and quasi-equity markets is addressing relevant market gaps and makes a significant contribution to the market in terms of volumes, market development and best practices. Nevertheless, the EIB Group’s equity/quasi-equity investments are heterogeneous: they show significant variations along the spectrum of firm stages in terms of relevance, additionality and policy impact, and contribute differently to the Group’s financial sustainability.

Recommendations to the EIB Group called for a) highlighting the differences in policy contribution and financial performance across the types of support targeting different types of firms, b) accommodating quasi-equity transactions into the EIB’s business model more smoothly, and c) implementing changes in the reporting of transactions targeting SMEs.