Greek FoF to raise E150m

Greek public sector fund of funds investor TANEO is hoping the launch of its venture capital fund of funds will act as a catalyst to investment in the country’s new economy businesses.

The New Economy Development Fund (TANEO), a Greek state-controlled investment vehicle, is to launch a venture capital fund of funds for private sector investors that will target investments in Greek new economy funds.

TANEO is looking to raise around E150m which it will spread across funds targeting Greek-based small to medium-sized enterprises. The firm is specifically targeting funds investing in innovative businesses.

Of the target fundraising of E150m, the firm is hoping to secure up to E105m from private investors, with the remainder provided by the Greek government. The fund will look to raise a further E150m after the first E150m has been fully invested, giving the fund a total size of around E300m.

TANEO CFO Charalampos Pappas hopes that the fund will act as a catalyst for investment funds targeting Greek businesses. “There are currently around ten venture funds operating in the Greek market. We hope that we will be able to engineer an increase in the current number of funds and are willing to commit up to 50 per cent to any one fund.” Firms already active in the Greek market include, NBG Venture Capital, which launched a TMT-focused fund in 2001.

TANEO has already hired Deutsche Bank, NBGI and EFG Telesis as placement agents, with fundraising scheduled to commence in October.