ESCALAR: up to €1.2 billion to help high potential companies grow and expand in Europe
date: 08/04/2020
With the launch of ESCALAR, the Commission is delivering on one of the actions announced in the new SME strategy to improve access to finance for SMEs. This initiative is particularly relevant in the difficult economic situation SMEs are facing currently due to the coronavirus outbreak. It will support innovative companies during, and after, the crisis, to ensure that Europe can develop and stay at the helm of global technological developments and accelerate its economic recovery.
Commissioner for Internal Market Thierry Breton said: “Commission is deploying all tools at its disposal to help companies overcome the coronavirus crisis. Today, we are strengthening our support to the many promising European companies to ensure they can continue to develop and grow in Europe. With ESCALAR, we are helping unlock significant additional private investments to support the creation of tomorrow’s market leaders.”
In its pilot phase, ESCALAR will provide up to €300 million backed by the European Fund for Strategic Investments (EFSI). This will aim to increase the investment capacity of venture capital and private equity funds, triggering investments of up to €1.2 billion. Interested fund managers can participate in the scheme by responding to the open Call for Expressions of Interest published today by the EIF.
ESCALAR aims to support fund closing by committing up to 50% of the size of the fund. It targets both new funds focusing on financing scale-ups, as well as existing funds wishing to support high potential companies from their portfolio to further develop their growth.
The current ESCALAR call is a pilot phase for 2020 with the objective that ESCALAR, based on this pilot experience, becomes a mainstream European financial instrument, alongside the existing financial instruments after 2020, within the next multiannual framework (2021 – 2027). Analysis and selection of the funds is managed by the EIF.