Investment strategy

“KOINVEST MTEPI”

(hereinafter referred to as the Fund)

Request for investment

Investment geography

The Fund can invest in companies operating in the Republic of Lithuania or another EU Member State, provided those investment benefits accrue to the Republic of Lithuania as stipulated in the Guidelines on the eligibility of costs of financial instruments published online at http://www.esinvesticijos.lt/lt/dokumentai/finansiniu-priemoniu-islaidu-tinkamumo-finansuoti-rekomendacijos. However, such investment in companies operating in another EU Member State cannot exceed 15% of the Fund AUM.

 

Criteria for the companies

The Fund can invest in the companies, which meet the following criteria:

1. Company must meet all of the state aid requirements at the time of investment. State aid requirements can be found here.

2. Company must be “innovative enterprise” within the meaning of Article 2(80) of Commission Regulation (EU) No 651/2014.

3. Company must be implementing or intending to implement research, experimental development and innovation projects in areas of smart specialization that are in line with the programs of the Priority Research and Experimental (Social, Cultural) Development and Innovation Development (Smart Specialization) directions and their priorities, approved by the Government of the Republic of Lithuania 2014 April 30 Resolution No. 411 “On Approval of the Program for the Prioritization of Research and Experimental (Social, Cultural) Development and the Development of Innovations (Smart Specialization) Programs and their Priorities” (hereinafter referred to as the Program) and at least one action plan of the priority established in the Program.

4. Research and study institution (“RSI“) is either one of the shareholders of the company or becomes shareholder at the time of investment.

 

The share of the company’s capital held by the science and studies institution

RSI funds must be around 5% the value of the specific investment or the authorized capital of the Company. RSI funds must be RSI own private funds, which would not be financed from public sources (state budget, European Union funds, etc.).

 

Maximum Fund contribution to investment per company

The Fund’s contribution to the specific investment can be up to 90%.

 

Fund’s investment per company

The total investment from the Fund, including subsequent investments, in one single Company must not exceed 20% of the Fund size.

 

Ineligible investments

  1. Cases specified in Article 1(2-5) of the Commission Regulation (EU) No 651/2014;
  2. Investments in companies operating in the areas referred to in Article 3(3) of Regulation No 1301/2013;
  3. Investments in companies directly operating in the production, processing and trade in weapons and ammunition, distilled spirits and related products;
  4. Investments in companies engaged in the organisation of gambling;
  5. Investments in companies operating in the natural sciences sector related to human cloning;
  6. Investment intended for refinancing or restructuring of existing loans or leasing obligations of the company or another undertaking;
  7. Investment in operations which are completed or fully implemented on the date the investment decision is adopted;
  8. Investment intended for financing a non-monetary contribution, which is not eligible expenditure;
  9. Investment where more than 10% of the amount is intended for land acquisition;
  10. Investment intended for real estate acquisition where such acquisition is not directly related to the principal activity of the company selected for investment;
  11. Investments in companies carrying out financial activities or real estate development, when this activity is carried out as a financial investment activity;
  12. Investments intended to cover the costs already financed (covered) by EU Funds, other EU financial assistance instruments or other international support resulting in some costs being financed more than once.

 

Sharing of income from investment

  1. First of all, the Fund, as a public investor, and private investors will recover their invested amounts.
  2. The Fund, as a public investor, will receive 4% annual profit on the amount invested for each investment year, which will be the maximum return for the Fund as a public investor.
  3. The share of profits remaining after distributing annual share of profits to Fund will go to private investors.
  4. If profit from the investment does not exceed annual profit share of 4%, the profit is allocated between the Fund, as public investor, and the private investor pro rata to their investments in the company.

 


Request for investment