The aforementioned call for expression of interest stipulated that: “Requests for clarifications from Applicants shall not receive individual replies. Instead, answers to all requests for clarifications received within the relevant deadline will be published together in a Clarification Document to be posted on the EIF website at latest on 19/10/2010”.

In accordance with this provision, we hereby present such a clarification document complemented with frequently asked questions.

Capitalised expressions utilised below shall have the meaning attributed to them in the above mentioned Call for Expression of Interest, unless otherwise defined below or the context requires otherwise. Questions may appear as they have been received without any editing from EIF; they also appear in a random order.

Question 1	In the case that an expression of interest wants to be submitted by a group of different professionals and a company. It is necessary in the documentation to include the consortium agreement or not. In case that we have to include the consortium agreement signed by the parties, is it necessary that this consortium agreement to be signed in front of a notary or just with a private consortium agreement is enough.
EIF Answer	The Expression of Interest does not need to prove formally the agreement of the consortium. However, when the panel decides to perform a due diligence on such consortium, all documentary evidence needs to be proven.
Question 2	An expression of interest will come from a Bulgarian entity not yet established. The question is whether EIF would accept their application without registration (it takes some time and money) – in the case, they are successful then they conclude the registration.
EIF Answer	The new fund management company must be legally set up at the time of the signature of the Operational Agreement at latest, which is after the time of the announcement of the results of the selection process, given the time necessary to secure the private funding. Applicants concerned should make this specification as part of the Expression of Interest.
Question 3	Does the 3% limit p.a. include all fees, costs and expenses?
EIF Answer	Yes. As stated in the Call: “for the purpose of the Financial Instrument, the management costs shall be deemed to include any fees, expenses and costs necessary to set up and manage the Financial Instrument. The management costs of the Financial Instrument shall not exceed, on a yearly basis, 3% of the committed capital during the investment period, and of the invested capital thereafter.
Question 4	Is an applicant for the VC call not eligible for the forthcoming Growth and Mezzanine calls?
EIF Answer	No. An applicant who has submitted its expression of interest for a call may still apply for another call. When selecting a fund manager in this and any future call, EIF will analyse its institution capacity to manage several instruments.
Question 5	Who can be a shareholder in the management company? Could it also be individuals?
EIF Answer	It is true that there is no set expectation on the shareholders of the Financial Intermediary; nevertheless, there is a list of criteria in the Call that the Financial Intermediary should satisfy and the Expression of Interest will undergo a stringent due diligence process.
Question 6	What is it to be expected by the fund manager in terms of marketing and publicity?
EIF Answer	The EC Regulation 1828/2006 mentioned in the Call provides for an indication of such actions ensuring the visibility of EU funds. In any case, compliance of operations with structural funds requirements will be discussed with the selected Financial Intermediary during the contractual negotiation process.
Question 7	How is the interest accrued on the escrow account used?
EIF Answer	As stated in the Call: "the mechanics of the disbursements and the escrow arrangement will be set out in the Operational Agreement".
Question 8	The Private Investors should constitute at least 30% of the Risk Capital Fund; does this include the Appicant’s commitment for own commitment of at least 1% of the total Fund size?
EIF Answer	Yes. The Applicant’s commitment falls under the Private Investors participation unless it comes from public funds.

We use cookies to give the best browser experience on our website. or change cookie settings.

Note: Following the recent withdrawal of the United Kingdom from the European Union, we are updating the relevant EIF.org pages.

European Investment Fund – The European Investment Fund is not responsible for the content of external internet sites.

Sitemap - Contact webmaster