The EIF's unique approach

Supporting lending through partnerships

We do not make investments into companies and infrastructure projects directly, nor do we lend directly. But we work with a large network of partners – our guarantee products are designed to share risk with financial intermediaries to encourage more lending in priority areas or underserved sectors.

Striving to achieve a bigger impact

EIF financial instruments have been designed with long-standing market experience and unique expertise to maximise each euro invested, to blend resources, and to attract private capital for stimulating investments and broader economic growth.

Driving investment and market growth

On the equity side of the EIF’s activity, our investments help crowd more resources from other investors. Our signalling effect can help new players and ecosystems get off the ground – including first time teams or female fund managers in developing equity markets.

The one-to-five principle

Our involvement provides incentives and a positive market signal, allowing debt financing intermediaries to lend more and helping funds to unlock commitments from other private sector investors.

On average, this generates a 5x leverage, meaning every €1 of public money mobilises €5 of total private capital.

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Benefits for investors and mandators

EIF products help member states, the EC and private institutional investors tackle funding gaps in particular in those areas that are important for European competitiveness and sovereignty. On average EIF products offer a 5x leverage of public resources. For every one euro of public spending, our risk sharing approach results in average five euros reaching the SME or project.

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Benefits for banking and fund partners

EIF products provide capital relief for banks: our AAA-rated portfolio guarantees and securitisation transactions share risk helping to free up capital for more lending to SMEs. We provide capital and offer a catalytic effect for funds: we back funds early in their fundraising providing a seal of approval and helping funds attract other investors and close bigger funds.

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Benefits for SMEs and projects

By making private capital markets work harder for SMEs and infrastructure projects, our products support the creation of a self-sustaining, long-term funding ecosystem. This translates into more available and accessible capital for entrepreneurs, SMEs, and infrastructure developers.

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Benefits for the entire EU economy

Through our intermediated model we can achieve significant leverage: for every euro of public resources that we invest, more than €5 reach European SMEs. This ultimately means more financing for businesses and infrastructure projects in line with our purpose.

Accessing EIF-backed funding

The network of EIF financial intermediaries has been continuously expanding over the past 30+ years across a wide range of historical and flagship mandates, which currently include InvestEU, ETCI, and predecessor mandates such as RCR, EFSI, EGF, and others.

We are working with more than 1,800 partners across debt financing and equity financial instruments to make funding accessible for SMEs and infrastructure projects. Find here the latest lists of our intermediaries.

ALL DEBT FINANCIAL INTERMEDIARIES

ALL EQUITY FINANCIAL INTERMEDIARIES

Our unique approach and impact

The EIF’s business model is quite unique, and it’s designed to maximise impact. Find out more about how we do it.

Resource blending

Capital mobilisation | leverage

Economic impact | mobilised