Our Mission is to further the objectives of the European Union by making long-term finance available for sound investment.
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Private equity is a form of financing that enables unlisted private companies to obtain the equity needed for their development.
The capital injection takes the form of a temporary minority participation. Remuneration is essentially the capital gain generated when the holding is sold and the expected return must be commensurate with the risk assumed.
FEMIP finances private companies by providing equity or quasi-equity funding (participating or mezzanine loans) from its budgetary resources. These operations are aimed for the most part, but not exclusively, at small and medium-sized enterprises.
As part of its support activity, FEMIP also deploys risk capital resources via participating loans to certain micro-credit associations.
Private equity operations present a number of features:
| Private Equity | ||
| FEMIP resources | Risk Capital Facility | FEMIP Trust Fund |
| Objectives | Promote the creation or strengthening of the capital base of productive enterprises, particularly those established in partnership with EU-based companies. | Complement the Risk Capital Facility by broadening the range of private equity instruments available to the private sector in the Mediterranean partner countries. |
| Beneficiaries | Mid-sized companies, SMEs, investment funds, microfinance institutions | |
| Type of funding and selection criteria |
Direct equity participations, possibly as co-investments with local banking partners Quasi-equity type operations (e.g. convertible loans, participating loans) Equity participations in venture capital / private equity funds (fund of funds activity). Participation in guarantee funds or privatisation initiatives. Participation in seed capital funds. Supporting the creation and development of microfinance institutions. |
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| Sectors | Wide range of productive sectors | |
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