EIF Equity Due Diligence model and planned initiatives in the Portuguese Market. Pablo Millán Porto, 17 January 2018

Transcription

1 EIF Equity Due Diligence model and planned initiatives in the Portuguese Market Pablo Millán Porto, 17 January 2018

2 Agenda Introduction to EIF Equity investments process Equity investments in Portugal Case Study (PVCi) A new initiative in Portugal? 2

3 Introduction to EIF Who we are We provide risk financing to stimulate entrepreneurship and innovation in Europe OBJECTIVE To support smart, sustainable and inclusive growth for the benefit of European SMEs. HOW By offering a wide range of targeted products to support SMEs and midcaps, ranging from venture capital to guarantees and microfinance. WHERE Working with financial intermediaries across the EU-28 and EFTA countries, candidate and potential candidate countries. 3

4 Equity investments process Financing business at every stage of their development VC Funds, Lower Mid-Market & Mezzanine Funds VC Seed & Early Stage Business Angels, Technology Transfer PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH DEVELOPMENT SME Development Stages HIGHER RISK LOWER RISK 4

5 Equity investments process A structured and rigorous assessment workflow BoD approval First Screening Second Screening Due Diligence Legal negotiation / Signature Understand Concept Investment readiness Stress testing and verification Legal documentation Based on preliminary questionnaire / pitch book/ PPM. Physical meeting (typically in Luxembourg); chance to articulate investment opportunity. EIF team conducts a physical due diligence visit (usually 2 days) to assess all aspects of the proposal and meet the investment team in person. After EIF BoD approval, legal negotiation; Aim is to align the terms and conditions to best market practice 5

6 Equity investments process Main aspects of the due diligence process First Screening Second Screening Due Diligence Legal negotiation / Signature Investment Strategy Market Assessment Team Track Record Governance Sustainability of the Manager Fundraising traction Terms and Conditions 6

7 Equity investments in Portugal Our portfolio (figures as at 30 September 2017*) TOTAL INVESTED EUR 626.2M REALISED PROCEEDS EUR 262.9M CURRENT VALUE EUR 531.4M INVESTED COMPANIES 94 EXITED COMPANIES 33 (of which 10 write-offs) FUNDS 27 (of which 7 terminated) * All amounts refer to Investments from EIF Portfolio Funds into companies since inception (1998). 7

8 Equity investments in Portugal Investments from our portfolio funds in Portuguese companies EUR 416m invested in 82 companies since 2005 Average ticket EUR 8.3m per company Annual Average EUR 46m invested in 6 deals Growing trend, expected to continue growing in the future 8

9 Case Study: Portugal Venture Capital Initiative Investments by Portuguese District PVCi was the 1 st EIF Equity Programme dedicated to Portugal. PORTO 19 investments EUR 134.8m BRAGA 4 investments EUR 24.5m AVEIRO 5 investments EUR 30.1m Since 2008, PVCi committed to 7 Portuguese Teams, who invested more than EUR 310m in 49 deals. LISBOA 15 investments EUR 82.5m SETUBAL 1 investments EUR 18.2m 9

10 Case Study: Portugal Venture Capital Initiative Jobs supported (at first investment) PVCi supported more than Jobs in Portugal 2 years after first investment date, the average number of employees per company more than doubled. 10

11 A new initiative in Portugal Concept design Cooperation scheme Key parameters Investor Tech Transfer Tailored NPI Investment Programme Social Impact Investor & Adviser / Fiduciary Generalist Investors: IFD own resources or other non- ESIF capital (50%), EIF (50%) Investment objectives: VC market development Target geography: Portugal Sector: two / three windows Investment period: 5 years Programme duration: years Extension: Programme can be extended, increased or decreased 11

12 A new initiative in Portugal Tailored NPI Investment Programme Combination of EIF s VC/PE investment expertise and NPI s knowledge of local markets and networks. Availability of dedicated resources, offered and customised by EIF to NPIs with market development purposes. Active presence in the local market to search for investment opportunities. Involvement of NPI during the investment process. Flexibility to re-size the Programme according to market needs. Exposure up to 100% of minimum fund size. Possible combination with ESIF resources with faster deployment and less restrictions. 12

13 Tank you for you attention! Pablo Millán Head of Division Mandate Management Equity Phone: (+352) Christian Lopez-Baillo Mandate Management Equity Phone: (+352) Miguel Alves Mandate Management Equity Phone: (+352)