EIF and 21 Investimenti, helping to fuel the growth of innovative SMEs in France

The European Investment Fund has today committed EUR 6 million in 21 Développement II, a new investment fund established in France, managed by 21 Centrale Partners SA based in Paris and sponsored by 21 Investimenti NV (Gruppo 21).

The EIF commitment represents 15% of the fund size at first closing. The EIF plans to maintain its commitment at 15% up to a fund size of EUR 100 million.

This commitment in 21 Développement II is the confirmation of the satisfactory relationship initiated with 21 Centrale Partners early 2000 when the EIF invested EUR 12 million or 15% in the predecessor fund 21 Développement, being the second major investor behind Gruppo 21. The objectives of the new fund will be similar to those of the previous fund, namely to take minority stakes in French SMEs, with a particular focus on innovation.

Highlighting the quality of the 21 Centrale Partners team as the major motivation for EIF renewed investment, the EIF Chief Executive Walter Cernoia praised the team's investment strategy, consistently developed over the last 14 years. This strategy is based on an industrial hands-on approach, aimed at creating value by developing the business and coaching promising entrepreneurs, thus helping the investee companies to grow. This second EIF investment in funds managed by 21 Centrale Partners will also further establish the Team as an independent and recognised operator in France and Europe, able to develop its business in the future without the additional support of the EIF.

This is the 23rd operation concluded by the EIF in support of the French market, bringing the total amount of EIF investments focusing primarily on France to approximately EUR 310m.

The EIF is a financial institution based in Luxembourg and owned by the EIB (60% of the share capital since June 2000), the European Commission (30%) and around 20 European banks and financial institutions (10%).

The Fund is the EIB Group's specialised financial institution providing venture capital and guarantee instruments for the creation, growth and development of Small and Medium-sized Enterprises, in both the EU and in the Accession Countries.

Its venture capital activity consists of equity investments in venture capital funds that support SMEs, particularly those that are early stage and technology-oriented; EIF's guarantee instruments consist of providing partial guarantees to financial institutions that cover credits to innovative and high-growth SMEs.

According to its statutes, the EIF shall & contribute to the pursuit of Community objectives working on a commercial basis, while selecting independently the operations it supports. Its role in promoting Growth, Employment, a Knowledge-based Economy, Entrepreneurship, Innovation, and Regional Development has recently been underscored by the Council and the European Parliament.