PFR KOFFI Fundusz Inwestycyjny Zamknięty
What does the fund do?a
PFR KOFFI FIZ is addressed to teams managing Venture Capital funds which invest in small and medium enterprises at the development or expansion stage.
PFR KOFFI FIZ supports the small and medium enterprise sector in the creation of non-technological innovations – mainly organisational, managerial or marketing. Enterprises which receive financing should be at the development or expansion stage, and their projects in the scope of the above mentioned innovations should demonstrate a significant market or expansion potential.
The financing is granted – through the fund’s resources – by entities specifically selected for the programme, i.e. Financial Intermediaries. The Financial Intermediary’s investments in a single company may constitute a maximum of 50% of the investment value, the remaining part is contributed by a Private Investor.
Who may benefit from the Fund?
- Innovative small and medium enterprises
- Private investors
What purposes or projects are implemented by the fund?
- Financing of the SME’s innovative projects through supporting enterprises at the development or expansion stage
- Internationalisation of enterprises’ activities
- Increase of the contribution of venture capital funds, private investors and investment teams in the financing of SME’s innovations
How does the financing by the KOFFI FIZ function?
The fund makes contributions to the Financing Intermediary through equity financing. The Intermediary invests in companies through equity or quasi-equity instruments, e.g. in the form of debt convertible to the company's equity.
The catalogue of instruments include:
- equity financing: shares
- quasi-equity financing: bonds, loans with an option of conversion to shares.
The financing of projects for innovative SMEs is granted by Financial Intermediaries – they are venture capital funds which receive resources from PFR KOFFI FIZ.
Pośrednik Finansowy może przyznać pojedynczej spółce dwa rodzaje finansowania:
First investment in a company
A maximum amount constituting the equivalent of EUR 15 million, half of which is the PFR KOFFI FIZ contribution, and the other half the Private Investors’ resources. The upper limit of this amount constitutes 20% of the given Financial Intermediary's capitalisation.
Follow-on investment
Up to the level of the maximum limits from the above point if they have yet to be reached and provided that additional requirements determined by law are met.
Area of operation
The final beneficiaries of the resources are companies with a registered office or branch in Poland, which plan to develop their activities in Poland or abroad. The Financial Intermediary’s registered office may be located in the EU, EEA or EFTA region.
Most important advantages
Due to the cooperation with Financial Intermediaries selected by KOFFI FIZ, young companies may obtain many advantages. The most important advantages include:
- acquisition of a stable partner,
- flexible possibility to choose the investment form,
- target investment value of up to PLN 3 million,
- relatively long-term cooperation,
- clear and comprehensible rules,
- cooperation with Financial Intermediaries whose teams have undergone a demanding selection process and belong to the group of the best specialists in Poland.
Investment period
The investment period may last 5 years with the possibility of extending this period by 1 year.
The divestment period also lasts 5 years and may be extended, but until no later than 31/12/2031.
How does the investment process in PFR KOFFI FIZ function?
PFR KOFFI FIZ calls for the programme and selects several Financial Intermediaries - venture capital funds. Each of the Intermediaries has its own Management Team.
The Financial Intermediaries receive a pool of funds from PFR KOFFI FIZ with a total value of PLN 324 million. PFR KOFFI FIZ can grant between PLN 20 and 60 million to an Intermediary, which is up to 50% of the Intermediary's capitalisation.
The Financial Intermediary Management Team and Private Investors also join the Intermediary, PFR KOFFI FIZ and the management team sign a tripartite investment agreement.
The Financial Intermediary Management Team looks for companies that are planning non-technological innovation projects (organisational, marketing or managerial). After a positive assessment of the project documentation and the fulfilment of the programme criteria, it awards the company the funds needed to implement the project.
What needs to be done to become a financial intermediary?
PFR Ventures Sp. z o.o. – the company which manages the portfolio of the PFR Open Innovations FIZ announces the call for the programme for Financial Intermediaries on the fund’s website.
Companies go through three stages under this process.
PFR KOFFI in short
Fund of Funds
PLN 324 million
Financing for small and medium companies at the development or expansion stage, in particular for non-technological innovations
The financing amount may range from PLN 1 to 60 million in the following proportion: 50% from the PFR KOFFI FIZ contribution and 50% from private resources
The investment period is divided into 2 stages:
- financial intermediary’s investment period – 5 years with the possibility of an extension by one year
- financial intermediary’s divestment period – 5 years with the possibility of an extension by one year
Open selection of investment entities carried out by PFR Ventures
Important information
For more details on the PFR KOFFI FIZ fund, visit the fund's management site, PFR Ventures.
SFDR Classification
The fund is classified as an Article 6 fund under the EU Sustainable Funding Disclosure Regulation (SFDR), which means that sustainability risk is taken into account in the investment decision-making process.
Sustainability risk in the SFDR is defined as: an environmental, social, or governance event, or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment arising from an adverse sustainability impact.
The principles for for considering sustainability risks in investment decisions are set out in the "Strategy for incorporating sustainability risks into PFR TFI S.A.'s investment decision-making process." which is available on that page.
Management of the fund
Record of Investment Funds
1452
Abbreviated name of the fund
PFR KOFFI FIZ
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