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The Pandora’s Box of the EIF: What GPs, Especially First-Time Funds, Need to Know About the…
- The EIF's investment process involves screening, investment readiness, due diligence, and final approval, similar to how funds invest in startups.
- The investment thesis, strategy differentiation, and value addition to founders play key roles in securing EIF approval.
- ESG, including Diversity & Inclusion and Climate Strategy, are core considerations for the EIF during the selection process.
- Understanding the market, having access to deals, showcasing team expertise, and aligning interests are crucial for fund managers.
- For first-time fund managers, proving credentials and aligning backgrounds with fund strategies is essential.
- Fund structure evaluation by the EIF emphasizes budget, portfolio model, return expectations, and legal structure.
- Common reasons for EIF rejections include lack of experience, sectoral expertise, and fund structure alignment.
- Engagement with LPs, regular updates, and transparency are vital to maintaining trust and securing continued support.
- Building strong LP relationships and focusing on core fundamentals are crucial for success with any investor.
- Applicants should be prepared for a potentially lengthy process, with first-time team evaluations by EIF lasting up to 12 months.
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