InvestEU: Wormser Freres Gestion to provide up to €22 million of new venture debt financing for French Start-Ups, Small Medium Enterprises and Small Mid-Caps through EIF guarantees

• European Investment Fund guarantee will support financing for about 15 Start-Ups, Small Medium Enterprises and Small Mid-Caps in France.
• The transaction is backed by three InvestEU thematic guarantees: i) “Innovation and Digitalisation”, ii) “Sustainability – SMEs and Small Mid-Caps” and iii) “SME Competitiveness”.

The European Investment Fund (EIF) has signed portfolio guarantees with Wormser Freres Gestion (Fund Manager) to support new venture debt financing provided by WF Venture Loan II of up to €22 million for French Start-Ups, Small Medium Enterprises and Small Mid-Caps. The transaction is backed by the InvestEU programme, which aims to mobilise over €372 billion in additional investment for EU policy priorities over the period 2021-27.

Under the backing of the EIF guarantee from the “Innovation and Digitalization” window, Wormser Freres Gestion expects to support final recipients from: i) IT and information services, ii) wholesale and retail trade, and iii) professional activities. The Intermediary will leverage on the experience from the previous deployment of InnovFin by the other entities from the Banque Wormser Freres. Under the support of the EIF guarantee from the “Sustainability” window, Wormser Freres Gestion will leverage on ESG and impact expertise that they were building internally. Under the support of the EIF guarantee from the “Competitiveness” window, Wormser Freres Gestion will originate subordinated debt financing and financing for start-ups.

Final recipients will be innovative companies with strong traction and solid growth prospects, that either already demonstrate profitability or have the potential to achieve it within a 12-month timeframe. The financing amounts will go from €1 to €4M per transaction with a 4-year maturity and will be amortized after a one year period.

“The EIF guarantees enable our group to provide venture debt financing in Europe at better conditions than usual venture debt competitors mainly based in the UK. Our Venture Loan is addressing a gap of non-dilutive financing tools for Start-Ups and SMEs in Europe. Furthermore, we created the impact venture loan, financing impact native companies with an interest rate reduction based on impact indicators backed by the “Sustainability” guarantee” said Marc Wormser, Managing Director of Banque Wormser Frères. sole shareholder of Wormser Frères Gestion

“We are delighted to renew our successful cooperation with Banque Wormser Frères, targeting timely and important priorities. As an alternative lender, Banque Wormser Frères is well placed to unlock new financing for small businesses, including through subordinated debt. Hence, this agreement also reflects our commitment to diversifying the sources of finance for SMEs in France,” said EIF Chief Executive Marjut Falkstedt.

Background information

Banque Wormser Frères, sole shareholder of Wormser Freres Gestion, is an independent family private bank founded in 1936 by Georges Wormser. It advises entrepreneurs, real estate players and families and offers them effective financing solutions, private or professional, and investment both listed and unlisted.

With 600 million euros in assets under management, around a hundred employees, and backed by long-term experience, it provides personalized support by seeking to preserve and enhance clients' assets over time. Responsible and committed, the Bank has always been driven by the desire to be useful to society, and today its activity is still characterized at all levels by the idea of ​​going beyond the function, making Banque Wormser Frères a key player in sustainable finance.

The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof a multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Press contacts

European Investment Bank Group: Christophe Alix | M: +33 6 11 81 30 99 | c.alix@eib.org

European Commission: Flora Matthaes | T: +32 229 83951 | flora.matthaes@ec.europa.eu