Luxembourg’s Ministry of Finance, Ministry of the Economy, the state-backed lender Société Nationale de Crédit et d’Investissement (SNCI) and the European Investment Fund (EIF) have launched the Luxembourg Future Fund 3, with capacity of up to €270 million.
The programme will be funded by €180 million from SNCI and €90 million from the EIF, more than 10 years after the first Luxembourg Future Fund was launched, the EIF announced on Friday.
Luxembourg Future Fund 3 will operate as a “fund-of-funds” — meaning it will invest in other investment funds rather than directly in companies — and is expected to broaden access to finance for start-ups, scale-ups and small and medium-sized enterprises (SMEs).
It can invest across venture capital, private equity and private debt funds.
The fund’s sector focus includes cybertech, deeptech, fintech, healthtech, proptech, spacetech, greentech or cleantech and transport.
Shift in how the programme is run
Most of the investment funds backed by the programme are expected to be established in Luxembourg, and their investment teams are required to be fully or partly based in the country, or commit to relocating there, the EIF said.
SNCI will also take a more direct role than in the first two editions of the programme, entering the investment process and investing in its own name, while continuing to draw on the EIF’s expertise throughout the investment lifecycle.
“This continuity, and the support of the state for the three iterations of the Luxembourg Future Fund, are an important contribution to innovation, competitiveness and business growth in the country,” EIB Group Vice-President Robert de Groot stated.
