State aid requirements

The State aid will apply and the Fund’s return on investment will be limited to 4 or 6% of annual compound interest if all the following criteria are met at the time of investment.

 

Criteria for the company targeted for investment

Company targeted for investment, as well as all enterprises linked to it (a group of all affiliated companies) must meet all the following criteria. Linked enterprises are defined in Small and Medium Enterprises Development Law (hereinafter referred to as the SME Law), additional explanations are provided in User guide to the SME definition. If any member of the company group is not fulfilling all the eligibility criteria, the aid can not be granted to any member of the group, including the company to which the investment is proposed. We note that companies can also be linked through natural persons as defined by the SME Law. Spouses, parents and their minor children (adopted children) are considered as one controlling person (pursuant to Article 3(10) of the Law on Competition).

 

State aid may be granted if the company meets all of the following criteria at the time of investment:

  • The company, as well as all enterprises linked to are a micro or small enterprises as defined by the SME Law. The status of the company is determined according to the small and medium-sized enterprise (SME) status declaration;
  • The company, as well as all enterprises linked to it are not listed on a regulated market;
  • The company, as well as all enterprises linked to it are younger than 5 years old (have they been incorporated and registered with the relevant registers less than 5 years ago);
  • The company, as well as all enterprises linked to it have never distributed its profits to its shareholders or members;
  • The company, as well as all enterprises linked to it were not established as a result of a merger;
  • The company, as well as all enterprises linked have not taken over the activities of another company;
  • The company, as well as all enterprises linked to it are not undertakings in difficulty. The definition of a undertaking in difficulty is provided in Article 2(18) of Commission Regulation (EU) No 651/2014.

 

Criteria for private investors co-investing with the Koinvesticinis fondas

 Private investors must be independent from the company targeted for investment:

  • Private investors must not be the current shareholders of the company targeted for investment.
  • Private investors, through related legal or natural persons, must not own 5% or more of the votes or shares of the of the company targeted for investment. Read more in Compliance to Fund investment strategy questionnaire.
  • In case Koinvesticinis fondas and private investors are co-founders of a new company, all private investors are considered to be independent.

 

Ineligible investments

Each Subund has a list of ineligible investments. A list of ineligible investments can be found in a specific Subfund’s investment strategy.

 

Investment process

Request for Investment