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DGKV Advises European Investment Fund on Setting up of a Second Wave Private Equity Fund

DGKV Advises European Investment Fund on Setting up of a Second Wave Private Equity Fund

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Djingov, Gouginski, Kyutchukov & Velichkov (DGKV) has advised LaunchHub Advisors OOD and the European Investment Fund (EIF) on the setting up of two new seed stage venture capital funds to invest in early stage startups in Bulgaria and across Southeastern Europe.

The lead fund represented by LaunchHub Fund Cooperatief, U.A. will manage funds provided under the EU JEREMIE Initiative, while the second fund – Launch Hub Co-Invest KDA – will be one of the first funds in Bulgaria raising only private money. The newly established LAUNCHub Funds will have at their disposal a total of EUR 18 million to be relocated by the end of 2018.

DGKV’s work on the project included structuring of the funds, negotiating the principal terms and conditions for formation of a partnership for joint investments, private vehicle structuring, and preparation of transaction and incorporation documents. According to a DGKV press release, "the team has accrued significant experience after being instructed by the European Investment Bank to handle the negotiations over the operational agreement with the Republic of Bulgaria in connection with the management of JESSICA Holding Fund and the operational agreement with the financial intermediaries initiative as well as on the structuring of relationship between the management authorities of Republic of Bulgaria and the newly set up Funds of Funds entrusted with the management of all EU financial instruments resources to be made available to Republic Bulgaria during the 2014-2020 programing period."

DGKV’s team on the project was led by Partner Georgi Tzvetkov and included Senior Associate Gergana Monovska and Associates Ivan Punev and Lora Aleksandrova.   

Editor's Note: After this article was published, DGKV contacted CEE Legal Matters to clarify that, "since the EIF has so far allocated resources only to LAUNCHub Ventures and another fund (BlackPeak Capital) we might change the first sentence [of the second paragraph] as follows: 'Launch Hub Co-Invest KDA – will be one of the first second wave private equity funds financed by the EIF.'" We apologize for the error.

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