CROGIP

EIF and HBOR will jointly invest into:

  • private equity funds managed by the management companies selected by the EIF and
  • co-investments with funds that already have an established relationship with the EIF and positive references.

The source for the investment is the CROGIP programme (Croatian Growth Investment Programme) worth EUR 80 million.

HBOR and the EIF committed each EUR 40 million to finance this programme.

The objective of the programme is to accelerate additional private-sector investment into equity funds and thus attain the amount of up to EUR 205 million to be invested in companies.

 

To whom the funding is intended

Financial means for these investments are intended to SMEs and Mid-Caps (up to 3,000 employees)

  • regardless of the sector they operate in,
  • that are not in early stage of development („start-up“),
  • that are established in Croatia and do the majority of their business in Croatia and/or plan an investment aimed at establishing or developing long-term operations in Croatia, as well as employ a significant number of employees from Croatia.

 

Whom to contact*

According to the terms of the CROGIP initiative and its internal procedures, the EIF has selected three funds in which the financial means of the CROGIP initiative will be invested.

 

Adriatic Structured Equity Fund

http://www.provectus-capital.com/hr/

office@provectus-capital.com

 

Prosperus Growth Fund

http://www.prosperus-invest.hr/

tomislav.ticic@prosperus-invest.hr

 

Croatian Mezzanine Debt Fund

http://mezz-partners.hr/

kresimir.gjenero@mezz-partners.com

 

*Note: Of the three listed funds, only Adriatic Structured Equity Fund started to operate. Prosperus Growth Fund and Croatian Mezzanine Debt Fund are still in the establishment phase.

 

About CROGIP

CROGIP is a financing programme launched 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 worth EUR 70 million launching CROGIP (Croatian Growth Investment Programme), an initiative that will facilitate investments in SMEs and Mid-Caps. In August 2020, the agreement amount was increased to EUR 80 million.

Beside the general objective of providing support to Croatian companies and job creation through ensuring the availability of private equity/venture capital, the purpose of CROGIP is to develop the market and institutional capacities for private equity/venture capital financing in Croatia by supporting fund management companies that direct a significant part of their investments to Croatian companies.

EIF implements CROGIP through investing in private equity funds and co-investing together with funds and private investors under market conditions. The programme is not limited to any sector.

EIF enables investing in funds and co-investing with selected management companies that have positive references in accordance with the criteria defined in advance by HBOR through CROGIP. HBOR did not participate in the selection of funds and co-investment opportunities. HBOR, as the EIF’s local partner, is available for the provision of local support to management companies that wish to increase their presence in the Republic of Croatia.

 

Investing in Private Equity Funds

When considering the investment of funds from CROGIP, the EIF required from the funds to meet, among others, also the following conditions:

  • management team with proven references
  • strategy aimed at investments in growth and expansion
  • most of company financing to be carried out in the form of equity or quasi-equity
  • in accordance with their strategy, they intend to invest at least 70% of funds in companies that are established in Croatia and:
    • perform most of their business in the Republic of Croatia and/or
    • plan investments that will start a long-term business in the Republic of Croatia (as indicated by a significant number of employees in the company in Croatia)
    • are small or medium-sized enterprises (definition of the European Commission) or mid-cap enterprises (up to 3,000 employees)
    • are not in the early stages of development (as defined by Invest Europe).

 

Co-Investing with Private Equity Funds

CROGIP enables the EIF to invest part of the funds under tis programme through co-investment with selected fund management companies that:

  • have an established relationship with the EIF
  • have positive references
  • propose co-investment in a company that represents a new or existing investment into the portfolio of the fund in which the EIF is already an existing investor.

Co-investing can be made in companies that:

  • are small or medium-sized enterprises (definition of the European Commission) or mid-cap enterprises (up to 3,000 employees)
  • are in the phase of growth and expansion and seek equity financing (i.e. companies should not be in the initial stages of the life cycle)
  • have strong growth potential
  • must be established in Croatia (when it comes to the location of the company) and:
    • perform most of their business in the Republic of Croatia and/or
    • plan investments that will start or develop a long-term business in the Republic of Croatia (as indicated by a significant number of employees in the company in Croatia)
    • have other significant links with Croatia as substantiated by the management company.