The Dutch Growth Co-Investment Programme is a EUR 100 million equity co-investment scheme developed by EIF and the Netherlands Investment Agency (NIA) and managed by EIF, to be invested alongside private investors with the objective to catalyse at least another EUR 100 million of growth capital to target companies. It is a joint initiative by EIF and the the predecessor of Invest-NL, NIA, which contribute a financial allocation of EUR 50 million each. The Dutch Growth Co-Investment Programme was launched on 27 September 2017.
The objective of the Dutch Growth Co-Investment Programme is to support innovative Dutch enterprises, by providing co-investment funding alongside equity investment funds and private investors on market terms and conditions. It will focus mainly on SMEs and small midcaps with a strong growth profile, and is targeting the "second equity gap” that companies face when they move beyond the start-up stage and into the growth phase of their lifecycles.
The Dutch Growth Co-Investment Programme will be the third initiative undertaken by the EIF and the Dutch Ministry of Economic Affairs, through the NIA, which illustrates the strong partnership and mutual commitment to provide further support to SMEs and smallcaps in the Netherlands. It is also one of the first financing programmes launched by EIF under the EIF-NPI Equity Platform in cooperation with EU National Promotional Institutions. The NIA became an aligned member of the EIF-NPI Equity Platform’s General Forum in September 2016.
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How does the Dutch Growth Co-Investment Programme work?
The Dutch Growth Co-Investment Programme is managed by the EIF, and funded by the Netherlands Investment Agency (NIA) and the EIF. It provides co-investment funding to qualified fund managers with an established relationship with the EIF. Eligibility is determined by the EIF, based on criteria on the target company and purpose of financing.
The funding is provied through a co-investment vehicle, set up and managed by the fund manager. The fund manager invests in the company from the co-investment vehicle alongside the main investment fund, in which the EIF is an investor.
EIF will manage and deploy the Dutch Growth Co-Investment Programme through co-investments into companies alongside investment funds in EIF's portfolio, a list of which can be found here. The co-investment can be made both into new and existing portfolio companies of such investment funds.
The co-investment capital will be provided through a co-investment vehicle, which is set up and managed by the fund manager. The fund manager will invest in the target company from the co-investment vehicle alongside an investment from the main investment fund. The size of investment will be assessed in each case.
Interested fund managers should submit to EIF a co-investment proposal targeting an identified target company through their existing EIF relationships or contact EIF for further information. Should the investment proposal meet the criteria listed below, EIF will conduct an initial screening to determine eligibility before proceeding.
Eligibility criteria
For fund managers
EIF, as manager of the co-investment scheme, will provide co-investment capital to selected fund managers who:
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have an established relationship with EIF;
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have a positive track record;
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are proposing a co-investment in a new or existing portfolio company of their investment fund, in which EIF is an existing investor.
For target companies
The target company must:
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be an existing or new portfolio company of the fund manager’s investment fund in which EIF is an existing investor;
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be an SME (EC definition) or small midcap;
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be established or operating in the Netherlands; and
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demonstrate strong growth potential.
The financing provided to the company must be for the purpose of supporting growth, expansion or acquisition financing, provided in any case that a majority of the financing is in the form of a capital increase.
Additional criteria may apply, and will be provided by EIF upon review of the co-investment proposal.