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Financial statements 2011
6 Disclosures relating to off-balance
sheet items
6.1 Assets held for third parties
Assets held for third parties represent investments man-
aged by the Fund and trust accounts opened and main-
tained in the name of the Fund but for the benefit of third
parties. EIF acts as an integrated operational platform for
SME finance, deploying resources mandated for man-
agement by its related parties (EIB and EC see note 8.1
and 8.2, respectively) and other third parties (public and
private entities) depending on the nature of the investment
as detailed below.
EIB resources
The Fund manages EIB resources through the following
mandates:
■
European Technology Facilities (ETF)
1 and 2 imple-
mented since 1998 which were fully invested by the
end of 2008 and 2010, respectively.
■
The
Risk Capital Mandate (RCM)
signed with the EIB
in 2000 to support, on a revolving basis, technology
and industrial innovation through early stage, expan-
sion and lower mid-market capital. The portfolio in-
cludes EIB’s then existing private equity portfolio that
was transferred to EIF in the context of the mandate.
■
The
Mezzanine Facility for Growth (MFG)
mandate
signed in early 2009 for the Fund to invest in hybrid
debt/equit y funds over an init ial period of three
years. The MFG aims at filling the financing gap for
European SME and lower mid cap companies by
providing hybrid debt/equity products for the benefit
of mature European small companies with strong
market positions and growth potential as well as high
technology companies in their expansion stage.
■
EIB co-funding to the
EPMF FCP
is described in the
European Commission resources section.
European Commission resources
■
Under the European Union’s Growth and Employ-
ment Initiative (G&E) and under the
Multi-Annual Pro-
gramme (MAP
) for enterprises and entrepreneurship,
the Fund manages resources on behalf and at the
risk of the Commission. This resource is split equally
between private equity and guarantee products. The
equity segment known as
ESU 1998 (G&E)
and
ESU
2001 (MAP)
covers the ETF start-up investments. The
guarantees segment known as
SMEG 1998 (G&E)
and
SMEG 2001 (MAP)
, provides guarantees
against the beneficiary’s undertaking.
■
Under the
Technology Transfer Pilot Project (TTP)
, fi-
nanced by the European Commission and signed in
November 2008, the Fund has supported a technol-
ogy transfer structure through pre-seed funding and
seed funding, as well as funding in the context of li -
censing and Intellectual Property transaction.
■
Under the
Competitiveness and Innovation Frame-
work Programme (CIP)
, the Fund manages resources
on behalf and at the risk of the Commission. The equity
segment of CIP known as
GIF (High Growth and In-
novative SME Facility)
covers early stage (seed and
start-up) investments and expansion stage (mid-market)
investments. Under the guarantees segment of CIP, the
SME Guarantee Facility (SMEG 2007)
, capped port-
folio guarantees are provided against the beneficiary’s
undertaking to enable increased financing to SMEs
and to increase the risk taking in the SME financing.
■
Under the
Joint Action to Support Microfinance Insti-
tutions in Europe (JASMINE)
initiative the Fund man-
ages the technical assistance initiative with European
Commission resources.
■
Within the involvement of the European Union in
the
Global Energy Efficiency and Renewable En-
ergy Fund (GEEREF)
, the EIF manages the Euro-
pean Union’s participation in the fund as trustee
and represents the Commission’s interests. Sec-
ondly, the EIF holds a technical support mandate