SmartCap and Estonian Development Fund are restructuring their current direct investments portfolio into a venture capital fund of funds investment model. The intention is to hand over the investment portfolio of Estonian Development Fund, Early Fund II (managed by SmartCap) and capital available for follow-on investments to a fund managed by a private fund manager.
In August 2016 SmartCap together with Estonian Development Fund and European Investment Bank launched a call to find a private fund manager. The call was announced during Baltic VC Summit, slide are available here. During the call, clarifications were asked and these can be found here. An independent selection committee appointed on the proposal of the European Investment Bank decided in December 2016 that Tera Ventures is the winner of the call.
SmartCap has started the negotiations with representatives of Tera Ventures on the technical details of the reorganisation. As a result of these talks, management of the investment portfolio should be transferred to the private management company within the first half of 2017.
SmartCap would like to ensure that a competent and experienced private fund manager would administer the outstanding investment portfolio along with its capital for follow-on investments in a sustainable manner and according to the market standards meanwhile maximizing the return for investors.