EIF signs pioneering agreement with Business Angels Fund I in Lithuania

Lithuanian version

Lithuanian SMEs will benefit from EUR 16.8 million of new investments 

 The European Investment Fund (EIF) today announced the launch of more than EUR 8.4 million into Business Angels Fund I ("the Fund") together with UAB MES Invest and its shareholders and Fund managers.

The Business Angels Fund I will invest up to EUR 400,000 Euros together with the Business Angels into Lithuanian SMEs in the form of equity investments. Investors will share their knowledge and experience to support SMEs to enhance business management skills and run their businesses successfully in the long run.

The Fund will invest on equal basis together with Business Angels, who are private individuals with business experience, knowledge and additional capital. The Fund managers invest themselves over EUR 420,000 Euro (5%) into the Fund. EUR 8 million is invested from the JEREMIE Holding Fund. It is expected that including the Business Angels contribution, the total investment will be approximately 16,8 million Euros.

The Fund managers: Ms. Daiva Rakauskaite, Mr. Arvydas Strumskis and Mr. Algimantas Variakojis have solid experience in business acquisition, development and exiting of companies, and have earned a good reputation within the business community.

Commenting on this transaction, EIF Chief Executive Mr. Richard Pelly said: "I am pleased to be launching this innovative Business Angels Fund investment targeting SME investment  in Lithuania. This transaction is a new structure and is a key element of stimulating equity investment together with the Business Angel community into Lithuanian SMEs alongside EIF's other investment activities in this country."

Mr. Arvydas Strumskis, commented: "It is a challenge to be pioneers. That is exactly what business means. Be first, be innovative, be courageous. Our aim is to support growth and innovation, passion of investor and skills of manager. We will co-operate with investors who share vision for strong growth, long term perspective and healthy returns".

This transaction is signed under the JEREMIE Holding Fund, which is financed from the EU Structural Funds under 2007-2013 Economic Growth Operational Programme for Lithuania.

The EIF is also implementing a number of other financial engineering instruments using the Holding Fund Structure in Lithuania and further announcements are expected in the coming weeks.

About JEREMIE 

JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (DG Regional Policy) and the European Investment Bank group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007 - 2013. JEREMIE enables the EU Member States and Regions to put money from the structural funds and also national resources into holding funds that can finance SMEs in a flexible and innovative way. Since the products will be provided on a repayment basis, funding will be reinvested and hence more SMEs will benefit from the EU resources.

EIF has currently signed 7 National (Greece, Romania, Slovakia, Latvia, Lithuania, Cyprus and Bulgaria) and 3 Regional (in France - Languedoc Roussillon, Italy - Campania and Sicily) Holding Fund agreements.

The new initiative aims at developing and fostering the role of entrepreneurship within the EU in order to meet the objectives of the Lisbon agenda and help structural funds to deliver greater benefits to the market.

Contacts:       

David Yormesor, EIF Communications Unit, tel +352 426 688 346, e-mail inforbd@eif.org

Arvydas Strumskis, „Business Angels Fund I" Partner and Director of UAB MES Invest, tel.: +370 5 260 4373, a.strumskis@strata.lt 

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