New Fasanara €250 million fintech fund anchored by the EIF to support SMEs across the EU
The European Investment Fund (EIF) thanks to the support of the Private Credit Tailored for SMEs Programme of the European Fund for Strategic Investments (EFSI), participates in the fund with €20 million to facilitate fundraising among private investors. Launched in December 2018, the programme combines resources from the EIF and from EFSI (the main pillar of the Investment Plan for Europe.) The purpose of the Private Credit Tailored for SMEs programme has been to foster private institutional investment in support of more market-based and tailor-made funding solutions for European SMEs and small mid-caps. The investment by the EIF in the Fund addresses the mandate target to support European marketplace lenders and crowd lending platforms, as an innovative financing channel to SMEs.
The fund target size will be up to €250 million, aiming to invest in working capital financing for European businesses, representing more than 100,000 jobs across Europe.
The first closing of the new programme was signed by the EIF, ITAS Assicurazioni, BNI Europe, BPG and Fasanara Capital to support European SMEs through financing of corporate receivables originated, assessed and priced through Financial Technology and Artificial Intelligence.
The transaction reflects the European Union’s commitment to launch concrete initiatives aimed at accelerating lending transactions capable of boosting jobs and growth in the EU, at a time of great need amid the pandemic.
Executive Vice-President for An Economy that Works for People, Valdis Dombrovskis, said: “It is important that businesses have access to tailor-made funding solutions that help them recover from the pandemic and kick-start their activities. I am glad that with the EFSI Private Credit Tailored for SMEs programme, we can do exactly that: support alternative sources of financing that help to boost jobs and growth in Europe.”
EIF Chief Executive Alain Godard said: “Debt funds offer small businesses an alternative to classic bank loans, including bespoke financing, speedy deployment and flexible approach. Our cooperation with Fasanara Capital – supported by the European Commission – demonstrates Europe’s strong commitment to improving access to finance for small and medium sized businesses in Europe. This will also help to strengthen the private debt market in Europe”
“We help bridge the gap between credit-starved SMEs and European institutional investors willing to support them, through the use of advanced technology, in ways that are sustainable, equitable, transparent and empowered with data. We are active in 25 countries globally, but with a key footprint in the EU.” explains Francesco Filia, co-founder of Fasanara Capital.
Fasanara Capital was launched in 2011 as an inventive, tech-powered investment house, looking at disruptive new technologies to advance the legacy financial infrastructure.
António Simões Pinheiro, Director at BPG added: ‘’SME´s are the back bone of many economies around the world. They are the driving force for value-added output, growth, employment and, ultimately, the key role player in a more inclusive and equality balanced global economy. Yet, although SME’s have the scale, they are perceived as a riskier and costly segment, thus finding themselves stranded and underserved by traditional banking lending.”
Background Information:
About the European Investment Fund (EIF)
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe’s micro, small and medium-sized businesses by helping them to access finance. EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.
About EFSI
The European Fund for Strategic Investments (EFSI) has been the central pillar of EU financing and investment support and was significantly redirected in 2020 to support EU businesses impacted by the Covid-19 crisis. The projects and agreements approved for financing under the arm of EFSI implemented through the EIF are so far expected to mobilise almost EUR 232 billion in investments and support more than 1.4 million start-ups, SMEs, and mid-caps across all EU Member States. The Private Credit Programme under EFSI makes cornerstone investments in funds that provide alternative, flexible and tailor-made debt financing for businesses.
About Fasanara Capital
Fasanara Capital is a boutique alternative asset manager, offering access to a range of inventive multi-asset capacity-constrained niche products. Fasanara employs an innovative, unorthodox investment strategy, and an advanced technology platform, in response to today’s transformational markets and digital disruption. Fasanara is a leading investor in fintech lending in Europe, with a core focus on corporate receivables and working capital financing.
About Bank BPG
BPG is a Portuguese private boutique bank, focused on Savings & Weatlth Management, Investment and SME Lending. Over the last years it has been building a collaborative ecosystem with innovative and technological advanced financial partners, addressing a more inclusive and broad diversification towards responsible and sustainable business financing.
