CROGIP is a financing programme set up by the European Investment Fund (EIF) under the EIF-NPI Equity Platform and the Investment Plan for Europe in cooperation with EU national promotional institutions. HBOR is one of the founding members of this platform since September 2016. In January 2019, EIF and HBOR signed the agreement launching CROGIP (Croatian Growth Investment Programme), an initiative that will facilitate investments in SMEs and mid-caps in the amount of at least EUR 70 million.
EIF will manage and deploy CROGIP by investing EIF’s and HBOR’s funds (and each will commit EUR 35 million) in:
– private equity funds to be managed by fund managers selected by EIF in accordance with its methodologies, and
– co-investments with funds that already have an established relationship with EIF and positive references.
In addition to the overall objective of supporting Croatian businesses and creating new jobs through ensuring the availability of equity, the purpose of CROGIP is to develop the market and institutional capacities for equity financing in Croatia by supporting fund managers who focus a significant portion of their investments into Croatian companies.
EIF will manage and deploy CROGIP through investments in private equity funds and co-investments with funds and private investors on market terms. The programme is not restricted to any particular sector.
EIF will enable fund investments and co-investments to selected fund managers with positive track record, and in accordance with the criteria defined in advance by HBOR through CROGIP. HBOR does not participate in the selection of fund managers and opportunities for co-investing. HBOR, as EIF’s local partner, is available to provide local support to fund managers seeking to increase their presence in Croatia.
Investment in private equity funds
Fund managers interested in being considered for a fund investment may submit their fund proposal to EIF. On EIF’s website, there is an opened call and investment proposals are being considered on a continuous basis.
EIF considers investment in funds under CROGIP in the funds that:
– are managed by a team with proven track record;
– have a strategy focused on growth and expansion investments;
– provide a majority of equity or quasi-equity capital to portfolio companies;
– target to invest at least 70% of their funds in companies that are established in Croatia and:
a) have Croatia as country of its main operations and/or
b) receive an investment aimed at establishing or developing long-term presence in Croatia (indicated by a significant number of employees in the company in Croatia)
c) are SMEs (as defined by the European Commission) or mid-caps (up to 3,000 employees)
d) are not in Early Stage (i.e. Seed and Start-up investment stages as defined by Invest Europe).
Additional criteria may apply, and will be provided by EIF upon review of the investment proposal.
Call for expression of interest
As part of CROGIP’s market development and capacity building activities, EIF launched a Closed call for Expression of Interest with the objective to select fund managers that meet the conditions for funding available within the scope of CROGIP.
The amount to be co-financed by HBOR under this part of CROGIP activities is indicatively EUR 25 million. This amount will be increased by the same amount of funding from other sources of financing under the EIF’s management, thus bringing the total amount to indicatively EUR 50 million. The deadline for submission of Expressions of Interest ended on 20 June 2019 and selection of one or more fund managers is in the process.
For the remining funds, EIF has a continuous opened call for expression of interest.
Co-investment with private equity funds
CROGIP allows EIF to invest a portion of funds under this programme in co-investment with selected fund managers that:
– have an established relationship with EIF
– have a positive track record
– are proposing a co-investment in a new or existing portfolio company of their main fund, in which EIF is already an existing investor.
Co-investment capital will be provided through a special purpose company, which is established and managed by the fund manager. The fund manager will invest into a target company from the co-investment vehicle alongside an investment from the main investment fund. The amount of investment will be evaluated on a case-by-case basis and there are no pre-determined investment limits.
Interested fund managers can submit to EIF a co-investment proposal through their existing relationships or contact EIF for further information.
Should the investment proposal meet the criteria set out below, EIF will conduct an initial screening to determinate eligibility before proceeding.
Co-investments target companies that:
– are SMEs (as defined by the European Commission) or mid-caps (up to 3,000 employees)
– are in growth and expansion stage and require private equity financing (i.e. the company must be beyond seed and start-up stages)
– have strong growth prospects
– in relation to the location of the company, must be established in Croatia and:
a) have Croatia as a country of main operations and/or
b) receive an investment aimed at establishing or developing a long-term presence in Croatia (which is indicated by a significant number of employees in the company in Croatia) and/or
c) have other significant links with Croatia as explained by the fund manager.
Additional criteria may apply and will be provided by EIF upon review of the co-investment proposal.
To whom are the funds intended?
The funds for this initiative are intended to SMEs and mid-caps (up to 3,000 employees) that are not in the start-up stages, established in Croatia and that have Croatia as a country of main operations and/or receive an investment aimed at establishing or developing a long-term presence in Croatia , thus employing a significant number of workers from Croatia.
Who should you contact?
If you are a fund manager, read more about how to submit your investment proposal to the EIF or contact your existing EIF relationship manager.
If you are a company interested in funding described above, please refer to investment funds in EIF’s portfolio, a list of which can be found in the following list:
List of investment funds in the EIF portfolio
After EIF selects fund managers to be funded from CROGIP, we will publish their contact information.