EIF launches dedicated Portugal fund-of-funds

01 July 2008

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Fund

The European Investment Fund has launched Portugal Venture Capital Initiative (PVCi), set at a hard cap of EUR120m. The vehicle reached its first closing in April this year at EUR111.3m. This dedicated fund-of-funds is a Luxembourg structure with minimum subscription at EUR5m. The management fees, carry and hurdle are set at industry standards for funds-of-funds. The fund has a 15-year duration and the usual restriction clauses. The fund forecasts its final closing in September 2008.

Investors

In addition to EIF, the Portuguese State (through the Ministry of Economy and Innovation and Ministry of Finance) has committed 22% to the vehicle; 64% of the commitments have come from the leading Portuguese banks including Banco BPI, Banco Espirito Santo, Millennium bcp, Caixa Geral de Depositos, Barclays Bank PLC, Montepio, Banif Banco Santander Totta. The Gulbenkian Foundation has also invested in the fund.

Investments

PVCi will invest in private equity and venture capital funds investing in SME projects in Portugal. The fund-of-funds will invest between EUR5-15m in approximately 10 funds, taking 10%+ stakes. PVCi will also support innovation and technology, facilitating the development of the Portuguese PE/VC market. The fund is currently reviewing several private equity and venture capital fund proposals and the vehicle is also open to co-investments alongside established funds.

People

PVCi will be advised by EIF. Established in 1994, EIF has a tripartite shareholding, which includes the European Investment Bank (EIB) as majority shareholder, the European Union (EU) represented by the European Commission, and a number of European banks and financial institutions from the public and private sectors. EIF, with 145 strong staff, has currently EUR4.3bn in assets invested in 250 private equity and venture capital funds.

Name: Portugal Venture Capital Initiative (PVCi)

First close: April 2008 EUR111.3m

Focus: Portugal, generalist fund-of-funds

Contact: John A Holloway, director of investments; Jacques Darcy, head of division; Ioannis Tsakiris, principal

Address: European Investment Fund, 43 Avenue JF Kennedy, 2968 Luxembourg

Tel: +352 42 66 88 1

Fax: +352 42 66 88 200.