Page 18 - Annual Report 2010

ANNUAL REPORT 2010

16

have persisted since mid-2007, EIF has been willing to support first closings by commit ting stakes of up to 50% in Funds, but with the perspective of reducing its participation in an eventual second closing. Specifically under the Joint European Resources for Micro-to-Medium Enterprises (JEREMIE) mandate, EIF has the possibility to commit up to 70% of a venture capital (VC) fund at first close, and remain at this level.

EIF has sought to expand its market impact and reach through the establ ishment of joint investment faci l i -t ies wi th publ ic and private ent i t ies (ERP and LfA in Germany), through its country- specif ic funds -of - funds (NEOTEC in Spain, iVCi in Turkey, PVCi in Por tugal, and the United Kingdom Future Technology Fund (UK-FTF). The signature of the UKFTF, set up in early 2010 to enhance access to finance for UK high tech SMEs, exemplifies EIF’s ef forts to maintain and enlarge its ca-pacit y deployed for the benef it of European SMEs. The table below shows the details of EIF’s resources and mandates.

General overview

As one of the largest investors in European venture and growth capital, supporting both first time and well -known teams, EIF has built a strong track record. Its equity activity is based on the experience it has developed through its diversified portfolio of fund investments, being a reference investor with tangible catalytic effect. EIF’s product offering is constantly adapted to market needs and EU policy goals, particularly in the context of the Europe 2020 strategy – the Innovation Union.

A key priority for EIF has been to help the establishment of a well -functioning, liquid venture capital market that attracts a wide range of private sector investors, and to contribute to the sustainability of investments in start-up, early and expansion stage companies and established growth SMEs. One of the objectives of EIF has been to optimise the use and deployment of available resources, including those entrusted by its mandators (EIB, the European Commission and third parties) when capital and budgetary resources at EU and national levels are limited. During the dif ficult fundraising conditions that

Year signed Total resource

EURm

Total committed

EURm % committed EIB Group

RCM 2000 4 000 3 778 94% MFG 2009 1 000 381 38% Own resources 522 389 74%

European Commission

G&E 1998 101 101 100% MAP 2001 242 242 100% CIP GIF (1 & 2) 2007 550 217 39%

Regional mandates and fund of fund activity *

ERP 2004 1 000 642 64% NEOTEC 2006 183 117 64% iVCi 2007 160 21 13% PVCi 2007 111 30 27% LfA 2009 50 26 52% UKFTF 2010 231 32 14%

* including EIB Group and EC commitments