SmartCap and Estonian Development Fund are restructuring the present direct investments portfolio into a venture capital fund of funds investment model. The intention is to hand over the investment portfolio of Estonian Development Fund, Early Fund II (managed by SmartCap) and capital available for follow-on investments to a fund managed by a private fund manager.
SmartCap, Estonian Development Fund and European Investment Bank launched a call in August 2016 to find a private fund manager. The call was announced at Baltic VC Summit 2016 and the slides are available here. Clarifications asked during the call can be found here.
The European Investment Bank appointed an independent selection committee, which decided in December 2016 that Tera Ventures is the winner of the call. SmartCap started negotiations with the representatives of Tera Ventures on technical details of the reorganisation. As a result of these talks, management of the investment portfolio should be transferred to the private management company within the first half of 2017.
SmartCap would like to ensure that a competent and experienced private fund manager would administer the outstanding investment portfolio along with its capital for follow-on investments in a sustainable manner and according to the market standards meanwhile maximising the return for investors.