The EIF has committed EUR 10 million through JEREMIE to the equity fund Catalyst Romania to benefit SMEs. Managed by a local team of 3TS Capital Partners and with a target final closing of EUR 30 million, Catalyst will invest between EUR 200,000 and 2 million in local SMEs primarily active in technology, internet, media, communications and services sectors. Catalyst will provide business expertise and much needed funding to help local innovative SMEs grow and develop.

Together with the EIF, which is the largest investor in Catalyst, an important local private investor, BT Asset Management (BTAM), has committed resources to the fund. Part of the financial group Banca Transilvania, BTAM is a major local investor focused on managing investments and a portfolio of over 8500 active clients with assets of 420 million Lei.

Commenting on the launch, EIF’s Head of Regional Business Development Hubert Cottogni said: „JEREMIE is a new way of spending community funds for the benefit of SMEs. It provides access to finance by supporting the further development of a VC ecosystem in Romania and involving private partners who possess the kind of infrastructure and knowledge which enable them to answer the enterprises’ need for funding as well as business expertise. The Catalyst Romania fund is such an example of synergetic and entrepreneurial support to SMEs.”

The Catalyst fund is the second instrument launched by EIF through the JEREMIE initiative in Romania, after the guarantee instrument implemented by BCR, Raiffeisen Bank and UniCredit Tiriac Bank, through which over 1,000 SMEs received loans for over EUR 100m to date.

EIF’s investment was committed under the JEREMIE Romania mandate. JEREMIE is a EU initiative aimed at supporting SMEs through financial engineering instruments supported from structural funds. In Romania, the JEREMIE initiative is funded by the Sectoral Operational Programme „Increase of Economic Competitiveness” 2007-2013, through ERDF. The selection of financial intermediaries which implement JEREMIE financial engineering instruments is performed by EIF through a Call for Expression of Interest process.

Mihai Sfintescu, Team Leader of Catalyst Romania, said: “In Romania, there are many talented entrepreneurs and teams, but funding of businesses is covered insufficiently. Additionally, limited global expansion experience and relative scarcity of management skills can hinder development. Through Catalyst, we aim to contribute to the growth of the companies that have a solid business model and can become either local champions on the Romanian market or global challengers selling their products and services internationally".

About JEREMIE

JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (Directorate General 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. The new initiative aims at developing and fostering the role of entrepreneurship within the EU.

In Romania, the JEREMIE Holding Fund is financed from the European Regional Development Fund within the framework of the Sectoral Operational Programme Increase of Economic Competitiveness, Priority Axis 1 “An innovative and eco-efficient productive system” – Key Area of Intervention 1.2 “Access to finance for SMEs”.

About EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 6bn at end 2011. With investments in over 370 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF guarantees loan portfolio totalled over EUR 4.4 bn in close to 220 operations at end 2011, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

Since 2011, EIF has become an important player in the EU microfinance market, by managing the PROGRESS Microfinance facility, funded by the European Commission and the EIB. Through PROGRESS Microfinance, microfinance funding and guarantee agreements have been signed with three Romanian financial institutions: FAER, Patria Credit and Banca Transilvania.

About 3TS Capital Partners

3TS Capital Partners is one of the leading private equity and venture capital firms in Central and Eastern Europe operating across the whole region through offices in Bucharest, Budapest, Prague, Vienna and Warsaw.

3TS primarily targets expansion capital and buyout investments in high growth sectors including Technology & Telecoms, Media & Marketing, Consumer & Services, and Energy & Environment.

3TS’s focus is to provide Growth Capital to companies which are or can become regional leaders or global challengers. The firm is a specialist in cross border expansion: supporting local firms becoming regional leaders, helping companies expanding into the CEE region or taking innovative products and services to global markets.

Contact:

EIF: David Yormesor, Communication officer, e-mail d.yormesor@eif.org
3TS: Mihai Sfintescu, Partner 3TS, msfintescu@3tscapital.com
BTAM: Laura Petrehus, Director Adj. Comunicare & PR, Banca Transilvania, Laura.petrehus@btrl.ro