Polish Growth Fund of Funds (PGFF)

The Polish Growth Fund of Funds (PGFF) is a EUR 90 million Fund-of-Fund initiative launched in April 2013 by the EIF in close co-operation with Bank Gospodarstwa Krajowego (BGK) to stimulate equity investments into growth-focussed enterprises in Poland. Locally, the initiative is named Polski Fundusz-funduszy Wzrostu (PFFW). At the initial stage, PGFF combines a EUR 30 million commitment from EIF with EUR 60 million from BGK.

In the future, additional commitment from EIF and BGK will be considered to maximise the impact of the initiative, subject to the development of PGFF’s portfolio and market demand.

To implement the PGFF activities, EIF utilises its experience and expertise in managing similar initiatives in close collaboration with national and regional partners across Europe.

What is the Polish Growth Fund of Fund’s Investment Strategy?

The Polish Growth Fund of Funds intends to build a balanced portfolio of Venture Capital, Private Equity and Mezzanine funds with an investment focus on Poland, over an investment period of 5 years. The investment period began on June 1^st 2013, when EIF opened discussions with eligible fund managers.

EIF, as manager of PGFF, openly considers the following investment opportunities:

• Investments into Venture Capital, Private Equity and Mezzanine funds with proven experience and insight into the Polish market;
• Co-investments alongside institutional investors into early to growth phase SMEs. PGFF co-invests with selected investors which are either domiciled in Poland or in a Central and Eastern European Country, or can consider investments into this area.

Are you a fund manager interested in partnering with us under the Polish Growth Fund of Funds? 

Both funds and direct co-investments need to satisfy a strict set of investment criteria applied under PGFF’s normal investment process. In terms of direct co-investments, we look for a qualified and credible partner, with extensive experience in the specific deal and whose reputation is at stake when undertaking any single investment.

You are eligible to apply for PGFF financing provided you fulfil, amongst others, the following criteria:

• Your investment strategy is focused on Poland (but could include other Central and Eastern European Countries). Please outline how the proposal fits in the current competitive landscape, what sector and stage is the fund targeting and why, how does it take into account the know-how of the team;

• Your team is well-balanced, with team members complementing each other in terms of skills and experience, with a proven ability to work together. Emerging and/or first time teams would be also considered;

• located/domiciled in Poland or in a Central and Eastern European Country;
• or,in case of international venture capital/private equity funds focusing on this region, a local team should be based or should be established in Poland or in a Central and Eastern European Country.
• Your track record proves adequate experience in the targeted investment area; previous investment successes and failures will be carefully analysed in order to understand the investment capabilities of the team;
• The fund is capable to attract further private finance from  other investors, e.g. pension funds, which will at least double the amount of investment capital required;
• The fund size is commercially viable to ensure the team’s stability and the fund’s investment capacity;
• The legal and tax structure of the fund should be clear and include market standard terms and conditions;
• All stakeholders in a fund have their interests aligned.
  Read more about the details to include in your investment proposal

How does the Polish Growth Fund of Fund Investment Process work?

A range of eligible Fund Managers, across a 5-year-investment period, can receive resources from PGFF to be invested into growth enterprises. The interested Fund Managers shall submit investment proposals to EIF, as manager of PGFF. Should the investment proposal meet the criteria listed above, your team will pass several screenings before the EIF undertakes to start a full due diligence process and brings the proposal further through EIF’s approval steps.