SID Bank signed the agreement with the EIF in November 2017 to set-up the EUR 100 million SEGIP programme with the support of the European Fund for Strategic Investments (EFSI). It is intended for all small and medium-sized companies with up to 3.000 employees established in the Republic of Slovenia.
SEGIP supports the capacity building of private equity funds established in Slovenia and also regional and pan-European private equity funds active in Slovenia, through which equity and mezzanine financing will be provided to eligible SMEs and mid-cap companies in Slovenia. Such funds are required to be managed and investments made by fund managers that meet EIF eligibility standards of professional management. Under the EIF closed call procedure, KD Funds was selected for asset management of a private equity fund and will receive funding from SEGIP. The objective of SEGIP is to support companies in their growth and further development, added value creation, entering new markets, financing of investments and working capital and even acquisitions of other companies, export financing, and succession and reorganisation financing.
Luka Podlogar, President of the Management Board of KD Funds, says: “Small and medium-sized companies are the engine of the Slovenian economy, making a significant contribution to economic growth. However, due to a lack of equity financing many of these companies are unable to reach their full potential. Our private equity fund will invest in companies with high growth potential and ambitious teams requiring capital to finance their capacity expansion plans, sales network building, product development or for the acquisition of competitors. The fund will offer Slovenian investors a new, alternative investment opportunity to acquire an equity interest in fast growing small and medium-sized companies that would be otherwise difficult to invest in directly. We have been through a very intense period in which we successfully completed a legal, economic and market due diligence review of compliance with the EU equity financing standards. We are proud that KD Funds has been selected to participate in the Slovene Equity Growth Investment Programme. It is an opportunity for us to fulfil our mission of being a responsible financial intermediary that also contributes to the development and growth of the Slovenian economy.”