SPAIN - EIF and CDTI launch new investment programme

The programme encompasses both a fund-of-funds and a co-investment vehicle. Emphasis will be on technology funds, but also on generalist funds that invest in companies which develop commercial applications of new technology, or which deploy technology supports. It brings together Spanish public and private sectors for investments in Spanish SMEs fostering innovation and research and development. Through the creation of an active network, the programme will also seek to provide Spanish and foreign investors with a showcase of the best opportunities in Spanish technology.

First closing of the fund-of-funds took place on target on 21 February. It was subscribed by CDTI, EIF and a range of other investors, mainly Spanish blue chips. The final closing, which is expected within the next six to twelve months will aim for the target size of EUR 200m, although the maximum size is capped at EUR 225m. EIF's participation will amount to EUR 50m.

The other investors to date come from a broad range of sectors including utilities, banks, savings banks, and telecommunications.

The co-investment fund is for direct co-investments into technological SMEs, in parallel with previously selected private equity and venture capital funds. It will operate much like a simplified side fund, and aims to provide additional flexibility and added value in support of technology SMEs primarily in cases of co-investment with generalist funds or with technology funds based outside Spain.

In the case of generalist funds intending to invest only a relatively small proportion of their assets in technology SMEs, co-investment from the programme will boost the investment and result, not only in additional investment in technology SMEs, but also in increasing awareness within generalist funds of the interesting opportunities to be found in Spanish technology. In the case of foreign venture capital funds, the programme seeks to strengthen Spain's visibility by encouraging leading technology investors in other countries to include Spain in their investment map through attractive co-investment opportunities.

Building on similar initiatives in other Member States, notably in France and the United Kingdom, the CDTI-EIF partnership will leverage EIF resources to ensure a coordinated approach between EIF, national public bodies and the private sector. Furthermore, it will give Spanish public and private investors access to EIF's know-how in fund-of-funds management.

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