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Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
Presentation by Els Boerhof
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Presentation by Els Boerhof

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Els Boerhof, Manager Micro and Small EnterpriseFund(MASSIF) - FMO - Netherlands

Els Boerhof, Manager Micro and Small EnterpriseFund(MASSIF) - FMO - Netherlands

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  • 1. TBLI Europe 2007 ‘ Private Equity Approaches to Renewable Energy Infrastructure and the Environment’ Martin Poulsen Paris, 15 th November 2007
  • 2.
    • Created by the Treaty of Rome in 1958, to provide long-term finance for projects promoting European integration.
      • Subscribed capital EUR 165bn.
      • EIB shareholders: 27 Member States of the European Union.
      • Lending in 2006: EUR 45.8bn (EUR 39.8bn within the EU25).
      • ‘ Promoting European Objectives’
    EIB – The European Union’s financing institution
  • 3. The European Investment Fund (EIF) Venture capital & SME guarantees
    • Established in 1994
    • Owned by:
      • EIB
      • European Commission
      • Other European financial institutions
    • Resources:
      • Own funds – subscribed capital
      • EU programmes
      • Trust operations (EIB, German Government)
    • 2006 figures (signatures):
      • Venture capital funds: EUR 368m (21 funds)
      • Guarantee operations: EUR 1685m (35 operations)
  • 4.
    • Private equity backed companies create more jobs
      • PE-backed companies increased employment by  9% p.a., compared to 1% p.a. for Mid-250 companies.
      • 2.8 million people (19%) in the UK private sector work for PE backed companies.
    • Private equity backed companies outperform:
      • Sales growth  9% p.a. (vs 5% p.a. Mid-250 companies), export growth 6% p.a. (vs 2%) national growth rate, investment by 18% p.a. (vs 1%) national increase
    • Annual tax contribution of over £26 billion.
    • Typical areas of added value:
      • financial advice, guidance on strategic matters, management recruitment purposes, access to contacts and market information.
    Why Private Equity in addition to Lending?
  • 5.
      • Seek to encourage investment in funds addressing new or challenging areas.
      • Driven by financial return
      • Develop market capacity for new build renewable energy projects
      • Catalytic effect in attracting other long-term investors into the asset class
      • Transfer of best practice between markets
    The EIB Approach: Objectives
  • 6. The EIB Approach: Requirements
    • Identifiable market demand and appropriate sizing
    • Management team experience and expertise (existing and new funds)
    • Focus on primary market transactions in eligible sectors and countries
    • Coherent investment and divestment strategy
    • Broadly balanced portfolio
    • No single controlling investor
  • 7. EIB Infrastructure Fund Portfolio
    • Infrastructure Fund investment activity commenced early 2005
    • Investments in 5 infrastructure and 2 renewable energy funds:
      • Emerging Europe Convergence Fund
      • Dexia South Europe Infrastructure Equity Finance
      • Dutch Infrastructure Fund
      • Barclays European Infrastructure Fund
      • Fin Opi Fondo Italia
      • Green Alliance
      • Enercap Power Fund
    • Total fund volume EUR1620m, total EIB commitment EUR195m, 29% drawn down at April 2007.
    • Portfolio remains young, performance expected to be positive.
  • 8. Environment Oriented Fund Concepts
    • Forestry Fund
      • First proposals under evaluation
    • Ecosystems (Biodiversity) Fund
      • Overall objective: demonstrate investments in the sector can be financially sustainable
      • Sectors : agriculture, forestry, non-timber forest products, fisheries and aquaculture, ecotourism.
      • Target of EUR50m (subject to market study findings)
      • European focus, enterprises and land-based assets
      • Associated technical assistance fund
      • Target 10%+ IRR
  • 9. Ecosystems Fund - challenges
    • Market definition challenging
    • Dealflow unclear
    • Traditional fund managers do not understand market
    • Although comparable funds exist, none are European
    • Further investor support sought!
  • 10. European Investment Bank http://www.eib.org 36 Thank you Martin Poulsen Energy / Environment Private Equity Specialist: [email_address] Chris Knowles Associate Director – Energy & Environment [email_address]
  • 11. Environmental Sustainability
    • Climate change initiatives, sustainable development and social welfare
    • Minimising adverse environmental impact in all projects
    • Direct loans of EUR 9.6bn in 2006 for:
      • mitigating climate change
      • promoting waste management and sustainable use of natural resources
      • improving the urban environment
      • reducing pollution
      • protecting biodiversity
    • Total loans of EUR 52.9bn 2002-2006
  • 12. Sustainable, Competitive and Secure Energy
    • Five priority areas:
      • Renewable energy
      • Energy efficiency
      • Research, development and innovation
      • Diversification and security of internal supply (including TEN-E)
      • External energy security and economic development
    • Loans of EUR 3.3bn in 2006:
      • EUR 0.5bn to renewable energy projects
      • EUR 0.3bn to TEN-E projects
    • Total loans of EUR 15.3bn 2002-2006
      • EUR 2.4bn to renewable energy projects
      • EUR 3.1bn to TEN-E projects

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