Dutch Alternative Credit Instrument (DACI)

Launched through the cooperation of Invest-NL, the Government of the Netherlands, and the EIF, DACI is a fund of funds investing in both selective and diversified debt funds, and thus, providing access to alternative sources of financing for Dutch SMEs.

The initial commitment is up to €200 million, comprising a contribution by Invest-NL and the Ministry of Economic Affairs and Climate Policy of €50 million each (an aggregate of €100 million), which is match-funded on an equal basis with EIF resources.

DACI aims to build a portfolio of up to 10 underlying selective of diversified debt funds with average investment ticket of €10 - 30 million investment per fund. At the final beneficiary level, DACI’s focusses on providing growth financing and working capital to SMEs in the Netherlands.

By working with non-bank financiers, DACI seeks to bring further diversity and to strengthen the resilience of the SME financing landscape in the Netherlands. Especially for smaller loans, non-bank financiers often have an important role in the market.

Based on EIF’s investment experience in this market segment, it is reasonable to assume that DACI, through the crowding-in of additional private investors, will mobilise a total of around €500m of debt financing into SMEs in the Netherlands.

DACI is also a strong complement to existing to other EIF-managed programmes in the Netherlands, including the Dutch Future Fund (DFF), the Dutch Venture Initiative DVI I and DVI II, EAF Netherlands and the Dutch Growth Co-Investment Programme.

Fund managers – how to apply?

DACI is expected to have a strong catalytic effect in the development of the Dutch Private Credit markets. Thus, we are looking for we are looking for qualified and credible partners (selective and diversified debt funds) who meet the following minimum criteria:

• Your track record should prove adequate experience in the targeted investment area; previous investment successes and failures will be carefully analysed in order to understand the investment capabilities of the team;

• The fund should be capable to attract further private finance from other investors, which should at least double the amount of investment capital requested from DACI;

• The fund size should be commercially viable to ensure the team’s stability and the fund’s investment capacity;

• The legal and tax structure of the fund should be clear and transparent according to best market practices, and should include market-standard terms and conditions;

• Stakeholders in a fund have aligned interests.

The EIF selects financial intermediaries based on a standard process including several steps of screening and due diligence. Read more here about how to submit your investment proposal to the EIF, or be in touch with your existing EIF relationship manager.