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Competition to find fund managers for EstFund has begun

04.07.2016

Yesterday, the European Investment Fund announced the competition to find fund managers for the sub-funds created under the fund of funds of private and public capital, in which the Estonian state operates as a shareholder. The Estonian state will invest a total of EUR 48 million through the fund of funds, with another EUR 12 million added from the European Investment Fund. Documents to participate in the competition may be submitted until 29 August. The results of the competition will be revealed by the end of the current year.

EstFund is a fund of funds, meaning that EstFund does not provide funding to enterprises directly, but instead invests into funds investing into enterprises, the managers of which are being selected in the competition. The fund is looking for teams having substantial experience in the field and being able to invest both their own resources as well as involve capital from private investors.

Liisa Oviir, the Minister of Entrepreneurship, said that EstFund is complementary to the existing Baltic Innovation Fund, starting to offer venture capital and private capital to Estonian enterprises in their earliest stages of growth. “Involving extra capital and professional investors in the development of enterprises in Estonia helps to give birth to the next international success stories like Skype or Transferwise,” noted the minister.

According to Lehar Kütt, CEO of KredEx, EstFund gives Estonian enterprises with great growth potential better access to equity capital investments. “The total capital invested by EstFund and private investors is around EUR 100 million, out of which EUR 48 million has been contributed by the Estonian state, EUR 12 million by the European Investment Fund and close to EUR 40 million by private investors.”

In total, three sub-funds with different investment strategies will be established under EstFund—a venture capital fund, a fund focusing on offering expansion capital, and a co-financing fund with business angels.

“Entrepreneurs interested in investments can address the fund managers selected in the competition and submit investment proposals to them. Fund managers themselves will be proactive in finding investment opportunities based on the funds’ investment strategies.

Additional information on the competitions and the terms and conditions is available at the website of the European Investment Fund at www.eif.org.