Slovene Enterprise Fund (SEF), a program developed by the Republic of Slovenia to support micro, small and medium-sized enterprises (SMEs) in the country, is seeking proposals from venture capital and mezzanine fund managers. It intends to make commitments totalling €34 million in order to expand the number of firms making venture capital investments in the country and to accelerate the development of SMEs with high growth potential. The Slovenian government will contribute 15% of the capital while the remainder will be contributed by the European Regional Development Fund.
The minimum commitment size to be made by SEF will be €1 million and it expects fund managers to raise additional capital from other private equity investors. The maximum stake it will take in any single vehicle is set at 49%. Firms selected by SEF will make at least 70% of its investments in Slovenia, while a maximum of 30% of committed capital can be deployed elsewhere. SEF will only invest with managers registered in Slovenia and the tender process will remain open until the end of June 2011, or until the €34 million has been fully committed. Investment decisions made by the SEF will place emphasis on the quality of management teams, while also taking account of each firm’s business plan and financial capabilities.
Preqin’s Investor Intelligence database shows that almost 2% of active private equity investors have previously committed to at least one fund investing in Slovenia. Approximately 14% of limited partners have previously gained exposure to the Central and Eastern Europe region, with half of these based in Europe and the remainder located in other regions around the world. Going forwards, nearly 8% of investors in private equity funds will consider opportunities to invest in vehicles targeting the region.
More information on institutional investors in private equity, and their key contacts, can be found on Preqin’s Investor Intelligence database.