EFSI Private Credit Programme

Diversified debt funds are an alternative source of flexible, tailor-made debt financing for businesses, including SMEs, in Europe. This market emerged in response to the retrenchment of banks and other traditional lenders after the financial crisis. Today it provides SMEs with a broader choice of financing options, as well as offering investors an asset class that links institutional savings with real economic growth.

The goal of the EFSI Private Credit Programme is to:

• Channel private institutional investment into diversified debt funds
• Increase the volume and diversity of alternative debt financing available to European SMEs and small mid-caps
• Support market-based, tailor-made funding solutions
• Contribute to the development of a Capital Markets Union by supporting pan-European investment activity

The programme is a continuation, and expansion, of the EIF’s existing support of diversified debt funds. So far, the EIF has committed around EUR 550m to 12 diversified debt funds, expected to mobilise over EUR 5bn debt financing for the benefit of approximately 1800 SMEs and small mid-caps.

What does the EFSI Private Credit Programme provide?

The EIF makes an equity investment in eligible diversified debt funds selected after a detailed due diligence and negotiation process. In some circumstances, the EIF may also provide bilateral, unfunded credit protection to investors, further encouraging support to this nascent asset class.

Who is eligible for participation in the EFSI Private Credit Programme?

The EIF aims to select diversified debt funds (financial intermediaries) managed by both established and new private fund managers. Eligible diversified debt funds shall apply a portfolio approach, investing in a relatively high number of predominantly senior financing facilities to be extended to SMEs and small mid-caps in the EU. In turn, the selected funds will offer institutional investors an attractive alternative fixed income product, with an adequate risk profile benefiting from broad portfolio diversification.

For complete eligibility criteria, please see the application documents below.

List the funds / managers the EIF has invested in so far: