Call for a private fund manager attracted six applications

October 19, 2016
The call organised by Estonian Development Fund and SmartCap attracted six teams to submit an expression of interest to manage government venture capital investments as a private fund manager. Four teams qualified to the second round.
The four teams admitted to the second round are invited to analyse the direct investment portfolio and develop an investment management strategy, after which they will assemble their final bids.

According to Sille Pettai, SmartCap Fund Manager the winner will be announced this year. “We aim to find the best team for managing the government venture capital portfolio. As four out of six bids qualified for the second round, the independent selection committee of European Investment Bank (EIB) will compare several visions in order to select the best one,” she said. To ensure full transparency of the competition, Estonian government invited EIB to coordinate the selection of the winner.

EIB’s representative Bruno Robino is satisfied with the number of participants considering the size of the local venture capital market. He said that the call has progressed as planned, which makes it likely to announce the winner this year. “In evaluating the final bids, we focus on the portfolio management strategy, the capability and viability of the fund manager and the way the fund manager intends to ensure the maximum alignment of the interests of the manager and the investor,” said Robino.  

On August 25th, the Estonian Development Fund, SmartCap and the European Investment Bank announced a call to find a private fund manager for the direct investment portfolio of government venture capital fund. The private fund manager is expected to create a new fund, manage the existing portfolio, make follow-on investments in a sum up to 10 million euros and exit investments in line with the strategy.

The winner of the call must invest equity and manage the fund at arm’s length. Proceeds from the previous exits and shares in companies, which SmartCap will exit before December 31, 2016 will not be transferred.

Under private management, the fund will retain earlier investment principles – all equity investments will be made jointly with private investors. The new fund should start operations in Q1 2017.

For further information, please contact:

Ms Sille Pettai
Fund Manager of SmartCap
+372 523 1675

Ms Mari Vavulski
Member of the Board of SmartCap
+372 5326 8116