The Baltic Innovation Fund (BIF) is a Fund-of-Fund initiative launched by the EIF in close co-operation with the Governments of Lithuania, Latvia and Estonia in 2012 to boost equity investments made into Baltic Small and Medium sized enterprises (SMEs) with high growth potential.
BIF represents a EUR 40 million investment by EIF with each Baltic Government committing EUR 20 million through their respective national agencies (INVEGA in Lithuania, KredEx in Estonia and LGA in Latvia). Significant part of resources committed by national agencies are returned resources from earlier Structural Fund financed financial instruments under JEREMIE framework, now being reused.
BIF will invest EUR 100 million into private equity and venture capital funds focusing on the Baltic States over the next four years through a ‘fund of funds’ process to attract additional private finance and implement the best market standards for equity investing in businesses. This trans-national process provides a real opportunity to further develop the Baltic Private Equity and Venture Capital market and to stimulate employment and competitiveness in the region.
BIF is intended to build a balanced portfolio of venture capital and private equity investments with an investment focus on the Baltic States. The balance will cover the aspects of instrument focus, vintage and an appropriately diversified number of underlying transactions.
EIF, as manager of the BIF, openly considers the following investment opportunities:
Furthermore, other innovative instruments, for example, technology transfer investment vehicles may also be considered for investment but only if appropriate quality investment opportunities would be identified.
Both funds and direct co-investments need to satisfy a strict set of investment criteria applied under EIF’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 to become an EIF Financial Intermediary under BIF provided you fulfil, amongst others, the following criteria:
About 5 to 6 eligible Fund Managers, across a 4 year BIF investment period starting from January 2013, can receive BIF resources to be invested into innovative high-growth SMEs and small MidCaps. 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.
Krisjanis Zarins, Tel.: (+352) 2485-81659, e-mail: email@example.com