EIF invests EUR 10 million in Fineco Capital SCA for Italian SMEs

The European Investment Fund (EIF) has signed a commitment to invest EUR 10 million in Fineco Capital SCA, an independent venture capital fund based in Luxembourg and mainly targeting SMEs in Italy. The signing of this operation represents a new and important step for the development of the Italian venture capital market.

Fineco Capital will provide equity or quasi-equity to companies with high growth prospects, innovative technologies, committed and qualified management team and looking for a medium to long-term partner to assist them in financial and strategic optimisation. The Fund intends to support mainly SMEs active in the following fields: mechanical, luxury goods, software, communication and media, healthcare, food, textile and leisure & tourism. Although the bulk of investee companies is expected to be located in Northern Italy, the Fund will also focus on investments in the Mezzogiorno. This operation thus represents an interesting example of a generalist Northern Italy focused venture capital fund contributing to the further development of the Italian high-tech sector and the venture capital market in Southern Italy.

Fineco Capital is sponsored by the Bipop-Carire banking group, who also acts as the cornerstone investor; other investors include inter alia Reale Mutua di Assicurazione, Fondazione Pietro Manodori and private industrial groups.

With this new operation, the total of EIF commitments dedicated to funds active in Italy amounts now to more than EUR 250 million, which represents an important global contribution to the development of the Italian venture capital market.

The EIF is the European Union's specialised financial institution for venture capital and guarantees. Based in Luxembourg, the EIF was established in 1994 as a joint venture between the European Investment Bank (EIB), the European Commission and several European banks and financial institutions. The EIB has become the majority shareholder of the EIF in 2000; the latter, with an investment potential of over EUR 3 billion until 2003, is now a major player in the European venture capital market; its investment strategy focuses on the promotion of European technology and the regional development of the EU.