What is the LfA-EIF Facility ?
LfA-EIF Facility is a EUR 100 million Fund of Funds (Dachfonds) launched by the EIF and LfA Förderbank Bayern for investments in venture capital funds to support technology-oriented early and development stage companies in the German region of Bavaria. Funds are not restricted to invest solely in Bavarian companies, but their investment activity should also focus on this region. EIF manages the facility on behalf of LfA Förderbank Bayern, which has committed EUR 50 million. This amount is matched by co-investments from the EIF, the European Investment Bank (EIB) and further EU resources.
The LfA-EIF Facility:
- targets all technology areas.
- 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 the European Recovery Programme (ERP)
What are LFA's investment criteria?
- The funds in which EIF invests under the ERP-EIF Dachfonds must invest exclusively in SMEs according to the actual EU definition
- The fund should have an office in Bavaria
- 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).
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