Following a successful competitive tendering exercise, Hermes Private Equity and the European Investment Fund were unveiled by the Chancellor as Fund of Funds Managers for the UK Innovation Investment Fund. The announcement is subject to contract, but it is expected that a Limited Partnership Agreement will be signed in early 2010.
At first closing the two Fund of Funds will have a combined total of £325 million to invest. This includes a cornerstone investment from UK Government of £150 million in total. It is our aim for both funds to attract additional private funds before final closing, likely to be 12-18 months after first closing.
Hermes will manage a Fund of Funds worth up to £125 million at first closing to invest in low carbon technologies. Hermes is investing up to £75 million into the fund alongside an investment of £50 million from the Government.
EIF will manage a Fund of Funds worth up to £200 million at first closing to invest in a range of technologies such as: life sciences, digital technology and advanced manufacturing. EIF is investing up to £100 million into the fund alongside an investment of £100 million from the Government.
Click here to read the press release accompanying the announcement.