Innovate Poland: PFR Ventures opens applications for funds
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Private equity, private debt and venture capital funds can now apply for funding under Innovate Poland. This is a project designed to mobilise new capital for investment in innovative companies.
PFR Ventures is opening the application process for Innovate PL FoF, which operates as part of the Innovate Poland initiative. The fund’s assets will be invested in management teams of private equity, private debt and venture capital funds that meet strictly defined criteria. Investments are planned at PLN 2.4 billion, with the first funds provided by Bank Gospodarstwa Krajowego (BGK), the Polish Development Fund (PFR) and Powszechny Zakład Ubezpieczeń (PZU).
– Innovate Poland is an investment in the future of the Polish economy – in its strength, resilience and ability to compete on global markets. Without a strong capital market, we will not build competitive advantages – which is why we are creating a coherent system for financing investment and innovation, of which this programme is a key element - commented the Minister of Finance and Economy, Andrzej Domański.
The programme is aimed primarily at experienced management teams that have previously managed funds and can present a portfolio of completed investments. Their strategy must include local investments, and the investment team itself should have strong ties to Poland.
Applicant management teams will be verified and analysed by PFR Ventures, and their final qualification for the programme will be based on accreditation by members of the Innovate committee. The committee includes those entities that have provided funding to the fund of funds, as well as external experts.
Investor Insights
As PFR, in Innovate Poland we combine the role of an investor with actively building the market. By sharing knowledge and experience, we want to attract further institutional investors to the programme and increase the scale of capital for funds, so that more resources reach the best teams and projects.
BGK’s participation in Innovate PL is part of our long-term strategy. We want to support innovative companies and the development of the investment market in Poland. As a development bank, we not only provide capital, but also help to build stable conditions for scaling Polish innovation. Such activities support the long-term development and resilience of the Polish economy. We are allocating approximately PLN 1 billion each to the programme’s pillars – Innovate PL and Future Tech Poland.
By joining the Innovate PL FoF as a commercial partner, we expect both a financial return and a real impact on economic development. Our experience shows that investments carried out by private equity and venture capital funds can combine attractive rates of return with the creation of strong, competitive companies. These are precisely the types of companies we want to see in the portfolio of the new fund of funds, in which PZU is an inwestor.
Investment strategy of Innovate PL FoF
The largest share of funds from the Innovate PL FoF programme will go to private equity funds. More than half of the capital will be allocated to this segment. The remaining portion will be evenly distributed between private debt and venture capital funds.
- We have two main objectives in the strategy: commercial and ecosystem-related. We look at potential rates of return and share with new investors our knowledge from previous allocations to over 100 funds. At the same time, we want to continue providing financing for modern Polish companies - explains Rozalia Urbanek, Acting President of the Management Board at PFR Ventures.
The allocation from PFR Ventures will not exceed 40% of the fund’s capitalisation. The remaining funds must be provided by other investors (e.g. other development institutions, institutional investors or private investors).
PFR Ventures assumes that the current programme budget will allow for financing more than 20 funds. The availability of funds will increase as new investors join. Depending on the fund’s profile, the value of a single investment from the programme may range from EUR 5 million to EUR 30 million.
The existing PFR Ventures programmes: PFR PE and PFR VC, which were based on funds from the Polish Development Fund and targeted at a similar group of managers, will be phased out.
Innovate Poland
Innovate Poland is a project mobilising capital in the private funds market, comprising two programmes: Innovate PL FoF and Future Tech Poland.
The Innovate PL FoF programme is implemented by the PFR Group and focuses on investments in private equity funds, with a smaller share allocated to private debt and venture capital. Currently, Innovate PL FoF has PLN 2.4 billion at its disposal, which may be increased as additional investors become involved.
The parallel initiative Future Tech Poland is co-created by Bank Gospodarstwa Krajowego and the European Investment Fund. It is addressed to venture capital funds and has resources amounting to PLN 1.5 billion.
