The European Investment Fund, which oversees the financial fate of EU Small and Medium Enterprises (SME), has recently allocated EUR 10 million to the Catalyst investment fund, via its JEREMIE initiative. Aiming to attract a total of EUR 30 million in capital, Catalyst is set to invest between EUR 200,000 and EUR 2 million in Romanian business initiatives in domains such as technology internet, media, communications and services.

Catalyst’s support of SMEs will cover several directions of interest, from strategy and planning, to expansion and access to experts, as well as assistance in subsequently obtaining financing. The investment fund has a 10 year expected life cycle, with 2 to 5 years of investments into the beneficiary businesses.

“In Romania there are numerous talented entrepreneurs and valuable teams, but business financing is insufficient,” states Mihai Sfintescu, Team Leader Catalyst Romania. “ [...] Through Catalyst, we aim to contribute to the growth of those companies that rely on a solid business model and which have the potential of becoming either local champions, on the Romanian market, or global players that market their products and services internationally”, added Sfintescu.

The second largest contributor to the Catalyst capital is BT Asset Management, a member of the Banca Transilvania financial group specializing in investment management with a portfolio of over 8,500 clients and assets worth approximately EUR 93 million (the equivalent of RON 420 million ).

Catalyst represents the second instrument implemented in Romania by the EIF through the JEREMIE initiative. Its predecessor, a guarantee instrument, brought more than EUR 100 million in loans to over 1,000 local business initiatives and was made available through the lenders Banca Comerciala Romana, Raiffeisen Bank and UniCredit Tiriac Bank.

JEREMIE furthers SMEs’ access to financing based on financial instruments relying on the structural funds allotted to EU member states. In Romania, this initiative is implemented through the “Increasing Economic Competitiveness” Sector Operational Programme to be completed by 2013. JEREMIE stands for Joint European Resources for Micro to Medium Enterprises.

Ioana Jelea, ioana.jelea@romania-insider.com