The European Investment Fund (EIF) and LfA Förderbank Bayern joined to establish the "LfA-EIF Facility", a EUR 100 million fund of funds (Dachfonds) for investments in venture capital funds to support technology-oriented early and development stage companies in the region of Bavaria, Germany. Funds are not restricted to invest solely in Bavarian companies, but their investment activity should also focus in this region.
EIF manages the facility on behalf of the LfA Förderbank Bayern, from which EUR 25 million are committed. This amount is matched by co-investments from the EIF, the European Investment Bank (EIB) and EU resources.
The LfA-EIF Facility
- Acts as a commercial investor, seeking an appropriate return on its investments
- Is a long-term and pro-active investor and gives support in structuring and improving the business proposition of Venture Capital teams
- Is a pari passu cornerstone investor for commercially viable teams
- Promotes best industry practice (fund structures, governance)
- Provides a catalytic role through high quality due diligence process
- Is a network gate for Venture Capitals through EIF's large portfolio
- Is a reliable and active investor adding value throughout the investment process
- May invest alongside ERP-EIF Dachfonds
Technologies
The LfA-EIF Facility targets all technology areas.
Investment criteria
- Independent teams with complementary Venture Capital, technology and industry experience
- Coherent fund strategy taking into account the know-how of the team as well as fund size and the geographic, industrial and technological focus of the fund
- Commercially viable fund sizes for team stability and the fund's shooting power concerning investments and follow-on financing needs
- Appropriate incentive for the whole team
- Pari-passu treatment of all investors
- Fund should follow commercial investment approach
- Clear legal and tax structure for the fund incl. market standard terms and conditions
- EIF may not participate in funds where funding from non-market-oriented investors exceeds 50% of the fund's total funding (excluding EIF)
- The funds in which EIF invests under the ERP-EIF Dachfonds must invest exclusively in SMEs according to the actualEU definition
- The fund should have an office in Bavaria
Team
The LfA-EIF Facility is fully integrated in EIF's organisation. It is managed by:
- Dr. Markus Schillo
- Nitan Pathak
- You-Ha Hyun
- Ralf Emmerich
- Team Assistant: Martina Veit
Contact
Teams with relevant fundraising projects are welcome to directly contact the LfA-EIF Facility. In order to facilitate the screening of any investment opportunity, please submit a comprehensive concept paper and/or draft Private Placement Memorandum.
Tel.: +352 42 66 88 308
Fax: +352 42 66 88 301
E-mail m.veit@eif.org
