The LfA-EIF Equity Facility is a EUR 150 million 'Fund of Funds (Dachfonds)' funded by EIF, LfA Förderbank Bayern, EIB and further EU resources and managed by EIF on behalf of LfA.
The LfA-EIF Equity Facility invests in venture capital funds and co-invests with selected business angels in Bavaria under the European Angels Fund Germany. The LfA-EIF equity facility covers all technology areas (ICT, life sciences, energy-related, emerging and converging technologies).
Funds are not restricted to invest solely in companies based in the Bavaria region, 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.
In more details, 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)
For Venture and Risk Capital Fund managers wishing to cooperate with EIF under LfA:
- The funds in which EIF invests under LfA must invest exclusively in SMEs
(see SME - EU definition)
- The fund should have an office in Bavaria
- Independent fund management 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, tax structure, 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).
For more information on how to submit an investment proposal to EIF see: EIF for Venture Capital & Private Equity funds
For SMEs :