Belgian Junction Growth new growth-equity fund receives backing from the European Investment Fund with support from the InvestEU programme and the Dutch Future Fund.
The fund’s primary focus will be scaling and industrialising companies with investment ticket sizes ranging between €5m and €15 million specialising in the energy transition.
Belgian growth equity fund Junction has announced first close of its new energy fund at €75 million, including a €30 million contribution from the European Investment Fund (EIF). The EIF participation in the fund is made possible through the support of the European Commission’s InvestEU programme, as well as the Dutch Future Fund (DFF). The new fund is focused on impact-driven companies developing software and hardware solutions that enable the energy transition. Notably, it will invest in clean energy production enabling technologies and in energy efficiency technologies for the building and renovation industries.
Paolo Gentiloni, European Commissioner for the Economy, said:
“InvestEU is making an important contribution to achieving our green objectives. I am delighted that, with this agreement, InvestEU will grant companies in the energy sector access to the finance they need to innovate, grow and create jobs. I am proud that InvestEU will play an important role in helping these companies achieve their full potential.”
“The energy transition is an important part of our fight against climate change.” says Alain Godard, Chief Executive of the European Investment Fund. “The innovative solutions that Junction targets, can speed up the transition towards a carbon-free Europe and world, and we are happy to support that.”
“The transition towards net-zero should not be a problem, as it can be achieved with technologies that already exist today. Most German or European venture firms prefer to invest in early-stage start-ups in order to have a quick turnaround. However, if we want to succeed with the energy and climate transition, we need more funding into scale-ups and SMEs”, says Junction partner Vincent Gregoir.
In its investments, Junction will focus on companies in the Benelux and Germany, but remains open to applications from other countries.
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budgetary guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
The Dutch Future Fund (DFF) aims to support the Dutch economy and contribute to preparing it for the future by focusing on areas such as digital innovation, artificial intelligence, life sciences and key enabling technologies, as well as thematic objectives such as the energy transition, sustainability and the circular economy.