Topic of the practice
Definition of the investment strategy as foreseen by Reg.1828 art.43 General provisions applicable to all financial engineering instruments
Good Practice Information
CDR choose a mechanism without a holding fund.A gap analysis found a potential on loan and investment markets. A EUR 13.5 mill fund was set up (without a holding fund),featured by flexiblity: fund manager decides on a case-by-case basis whether to use a loan or investment (or combination of 2) as capital. Decision on capital is made after companies complete a 6 month qualifying accelerator program
supervised by the fund manager. The program serves as due diligence test on whether companies seem competent to implement the 12-18 month growth plan that would be part of the capital bundle offered by the fund. The companies that receive capital are followed closely by the fund manager who works actively within the single companies at least once a week during the growth plan implementation period.
Evidence of success
This good practice has been chosen in the TWG1 because of its flexibility. It is easily adaptable to changes.
Companies are cared on a long term basis, which allows the innovation structuring on the territory and brings a certainty of the enterprises potential to innovate & to develop themselves, thanks to the several months support.
Contact details to obtain further information on the practice
Jens Kastrup Kjersgaard
Central Denmark Region / Region Midtjylland
Annex completed on: 10-21-2013