EIF’s Core Business is Financial Engineering
                     EIF is the EU’s specialist institution in Financial 
                        Engineering Instruments (FEIs)
                     EIF manages portfolio of over EUR 16bn of 
                        commitments via 500+ Financial Intermediaries
                          Equity Instruments: Over EUR 4.5bn through 300 Funds
                          Debt Instruments: Over EUR 11.5bn through 200+ 
                            Banks
                     EIF manages multiple mandates from EU, EIB, 
                        Member States & Regions to create FEI portfolios
                     EIF works closely with EIB on many of these 
                        aspects to deliver additional added value
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                    Baltic Sea Region is a 
                    core
                    market for EIF
                    Over EUR 500m invested 
                        into over 60 equity funds 
                        across the region in last 
                        few years
                    Pioneering marketplace: 
                         Technology Transfer transactions with 
                        some examples…
                            Chalmers Innovation Seed Fund and 
                            the Karolinksa Institute in Sweden
                         Business Angel Co-investment Fund 
                            with Strata in Lithuania
                    EIF strongly supports EUBSSR process but 
                       we can only focus on Priority Area 8: 
                       Strategic Project 7.2
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                          The problem is 
                          becoming critical…
                        Nordic Innovation Center Study, May 2010 ‘Enhancing 
                        cooperation in the Nordic Seed Capital  Market’ 
                        
                         “the challenges in the early stages include lack of private financing 
                        in the seed stage, difficulties for venture capital funds to secure new 
                        funding for the expansion stage, lack of patience and focus as well as 
                        scattered resources in publicly funded investment operations.”
                        Nordic Innovation Center Pre-Study, November 2009 
                        ‘Nordic Baltic Investment Fund’
                        
                         “ Presently, financing for VC funds  has become most difficult to 
                        obtain. If action is not taken today, there is a risk of a substantial 
                        setback in the development of the Nordic/Baltic risk capital market. A 
                        well functioning VC market needs, in the long term, to be attractive 
                        to the private sector and particularly to institutional investors 
                        worldwide.”
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                    Financial Engineering is vital but not simple
                     Financial Engineering Instruments are proven to be the 
                        best way to maximise financing of SMEs
                     Creates quality investment process, maximises leverage 
                        and improves long term sustainability
                     Skill is to combine public with private financing that 
                        creates sustainable critical mass of investment into SMEs
                     BUT…
                     We must understand how Financial Intemediaries think
                     And what Private Investors find attractive (or not)
                     Without them – it will fail
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                    Baltic Sea Macro-
                    Regional 
                    Approach is what the 
                    market wants
                    Cross-border approach is 
                        the only way forward
                    Marketplace wants this 
                        solution
                         SMEs increasingly operate cross-border
                         Financial Intermediaries all operate 
                             cross-border
                         Insitutional Investment managers need 
                             geographical diversification
                     A fragmented sub-regional approach is not 
                        the way forward and we would not 
                        recommend it
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