As the crisis is far from over and in particular the economic impact on Europe and the world is not yet foreseeable in full, the topic has so far not lost its importance. The perspective of the EIF with respect to these current challenges is specifically interesting as the EIF is Europe’s largest provider of risk capital. Thereby, the interview provides valuable insights into the EIF’s assessments, but also into the EIF’s view of its responsibility for Europe to European fund managers, investors and other market players.
One of the many challenges the EIF is facing is the difficulty to perform due diligences of possible investment opportunities that usually require on-sight examinations. The European market itself is shaken by uncertainties that are in many cases not resolved. As the EIF still strongly intents to ensure that 2020 will become a successful vintage year, it was quickly clear that the EIF would continue its work as a powerful cornerstone investor. Additionally, the EIF enhanced its flexibility when needed in ongoing investment negotiations, e.g. by increasing its commitment in certain funds or compromising to lower minimum fund sizes of other funds to ensure the respective first closing. Apart from the support of new funds, the EIF also intends to back its legacy portfolio through various programs such as the Corona Matching Facility.
Overall, it remains to be seen how the European economy develops under the given circumstances. In any case, the EIF is willing and capable of responding quickly and effectively to the problems at hand and of living up to its responsibility for Europe.