Market test for the financial instrument “Mezzanine / Growth Fund”
Fund Manager of Financial Instruments in Bulgaria EAD (“FMFIB”) is rolling out market consultations to test the indicative terms and conditions with respect to financial instrument Мezzanine/Growth Fund (“MGF”) within the scope of Operational Programme Innovations and competitiveness 2014 – 2020 (“OPIC”).
The process is intended to provide sufficient input towards the completion of a term sheet regarding the instrument as well as the preparation of a tender pack for the selection of financial intermediaries tasked with its implementation.
The feedback collected following these consultations would enable FMFIB to align the characteristics of the instrument with the prevailing market trends as well as with the requirements of the prospective fund managers, private investors and investees while accommodating the national and Union policy objectives set forth in OPIC.
The MGF structure envisages the set-up of a single or multiple investment vehicle(s) to enable the leveraging of the public funds with private resources. The newly established fund(s) will provide access to alternative forms of financing and will deploy the mobilised resources in a diversified portfolio of equity and quasi-equity investments to support later stage SMEs with high growth potential. It is expected that among others, the fund(s) will support the companies in increasing their manufacturing or service capacity and the development of new products and production methods.
The MGF should be structured and managed by investment professionals, i.e. financial intermediaries, to be selected by FMFIB in an open, transparent, and non-discriminatory procedure compliant with the applicable national and European regulations.
The indicative term sheet of the instrument has been published and is available for review at FMFIB’s corporate website. Kindly be advised that the publication of this document initiates the process of market consultations as defined in art.44 of the Bulgarian Public Procurement Act.
Any interested stakeholders are invited to provide their comments, suggestions and queries up until April 13th 2017, 18:30 EET at MGFOPIC@fmfib.bg.
FMFIB reserves the right to schedule and conduct structured interviews with stakeholders, which may include, among others, institutions and potential financial intermediaries which have submitted hereto their comments with respect to the indicative term sheet.
In order to ensure the effectiveness of the discussions and exchange of information with regards to the product, it is recommended that the participants in the interview process prepare an investment presentation or summarized information with regards to: the market opportunity; the potential investment strategy and investment processes; the fund management team and track record; the potential fund raising from co-investors; and the envisaged fund structure and terms.
The FMFIB team remains at your convenience to respond to any queries related to the market consultation process on +359 2 801 40 50.