The European Investment Fund (EIF) and Arbevel has signed a portfolio guarantee of up to €72 million through its private debt fund to support SMEs and lower mid-caps growth (InvestEU)
- European Investment Fund guarantee will support financing for SMEs and lower mid-cap companies.
- The transaction is backed by three InvestEU thematic guarantees: i) “Innovation and Digitalisation”, ii) “Sustainability – SMEs and Small Mid-Caps” and iii) “SME Competitiveness”.
- The transaction is supported by the InvestEU programme, which aims to mobilise over €372 billion in additional investment for EU policy priorities over the period 2021-27.
The European Investment Fund (EIF) backed by the InvestEU programme has signed a portfolio guarantee with Arbevel to support up to €72 million in new financing for SMEs and lower mid-caps.
Under the support of the EIF guarantee from the “Innovation and Digitalisation” InvestEU window, Arbevel expects to support final recipients from industrials, IT & communication services, healthcare and other sectors. Under the support of the EIF guarantee from the “Sustainability” InvestEU window, new debt financing is to be provided to final recipients that are active in Climate Mitigation. Arbevel intends to target projects such as green technology and e-mobility (i.e. solutions that enable monitoring or/ and reducing energy consumption and contribute to climate mitigation objectives). Under the support of the EIF guarantee from the “Competitiveness” InvestEU window, Arbevel expects to engage in subordinated transactions (subordinated bonds), again supporting small and medium-sized businesses.
European Commissioner for the Economy, Paolo Gentiloni, said: “InvestEU continues to play a crucial role in supporting small and medium-sized businesses across Europe. I welcome these EIF guarantees supported by the InvestEU programme, which are designed to encourage investment for SMEs and lower mid-caps in the key areas of innovation, digitalisation, sustainability and competitiveness. This will help many more businesses to fulfil their growth potential and create jobs.”
“Arbevel is pleased to pursue its partnership with the EIF aimed at strengthening access to financing for SMEs and increasing their competitiveness and sustainability goals,” said Jean-Baptiste Delabare, President of Arbevel, and added: “since the beginning of our partnership with EIF in June 2020, we have already helped 23 SMEs. With InvestEU we are committed to play our part in supporting the growth and sustainable transition of small and medium companies.”
“Today we are building on our existing partnership with Financiere Arbevel in France: sharing a commitment to financing small businesses whose investments make our economies more resilient and sustainable”, said EIF Chief Executive Marjut Falkstedt. “In times in which SMEs are facing many challenges, we want to ensure continued access to finance – including through alternative lenders like Financiere Arbevel.”
Background information
The InvestEU programmeprovides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof a multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
Arbevel is an independent asset manager and alternative investor. Taken over in 2009 by its current managing partners, Arbevel has grown rapidly to reach €2.1 billion* assets under management and close to fifty employees. The company has a broad spectrum of investment strategies dedicated to European corporate companies, ranging from listed equities to fixed income, private equity and private debt. With a team of 15 fundamental analysts and portfolio managers, Arbevel stands out for its commitment to support companies over the long term, maintaining a close and constructive relationship with their management to encourage them to improve their financial and extra financial performance indicators. Arbevel's expertise is available to wholesale or institutional clients through mandates and funds.
The EIF is part of the EIB Group. It supports Europe's SMEs by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.
