EREM Loan Funds is a product set-up and implemented by EIF under the EIB Group Risk Enhancement Mandate (EREM). Loan Funds in Europe are a developing asset class with different business models emerging, depending on the investment approach and type of players involved.
Are you a loan fund management company raising funds interested in cooperating with us?
Through EREM Loan Funds, EIF aims at investing in European independent private management teams raising funds from a wide range of investors in order to provide new financing, mostly in the form of senior debt (secured or unsecured) to SMEs and Small Mid-Caps. Emerging and/or first time teams would be also considered. Besides providing funding, we can also help fund management companies and financial institutions to shape and optimise their investment proposal, sharing our expertise in all phases and areas of structuring, raising and managing a fund.
In order to facilitate the screening of any investment proposal, please submit a comprehensive marketing presentation, concept paper and/or draft Private Placement Memorandum to EREM@eif.org specifying the following details:
- Market opportunity addressed by the fund.
- Investment strategy, geographical focus and target sectors including the reasons for this focus.
- Fund target size and related portfolio model, with supporting evidence demonstrating its commercial viability and its fit with the intended strategy.
- Management team. This section should address how team members complement each other in terms of know-how and experience and how the skill-set fits with the competencies required to implement the investment strategy.
- Level of portfolio diversification, risk/returns targets, loan features. Evidence of the team’s stability and ability to work together effectively should also be included.
- Track record, providing evidence of the team’s investment capabilities, including adequate experience in SME lending in the specific target geography.
- Deal flow and examples of the most representative deals in the pipeline.
- Loan underwriting, due diligence and credit assessment process; including description of any rating model used.
- Fund’s legal structure, including details about the governance (indicating any potential sponsor of the fund / management company, its role and privileges); proposed terms and conditions and expected returns.
- Alignment of interest between the management team and investors in the fund, including sponsors, as applicable.(e.g. team commitment to the fund and carried interest beneficiaries)
- Timing of fund raising.
Should the investment proposal meet our criteria, your team will be invited to present it at our headquarters in Luxembourg.
Read about other EREM debt products