Luxembourg Future Fund Announces €8m Investment in M80 Capital II CommV Fund

Luxembourg's Ministry of Finance, the Ministry of the Economy, the SNCI national credit and investment institution and the European Investment Fund (EFI) have announced an investment in the M80 Capital II CommV fund as part of the Luxembourg Future Fund 2 (LFF 2).

The ministers responsible for the SNCI, Gilles Roth, Minister of Finance, and Lex Delles, Minister of the Economy, SMEs, Energy and Tourism, the SNCI and Marjut Falkstedt, Managing Director of the EIF, announced the €8 million investment on Friday 7 June 2024.

The M80 Capital II CommV fund specialises in digitalisation, transformation and ESG criteria, particularly important for traditional SMEs operating in a complex environment. The initiative aims to strengthen the Luxembourg private equity ecosystem and promote the important criteria of sustainable economic substance in Luxembourg, noted the respective parties.

They added that the M80 Capital II CommV stands out for its flexible approach to transaction structuring and its investment angle focused on digital transformation. Its strategy reportedly meets the needs of Luxembourg companies in terms of flexible financing solutions. It also focuses on creating value through advanced digital optimisations, ranging from the implementation of IT management systems for the company and/or its customers to the introduction of robotics, internet of things (IoT) and artificial intelligence (AI).

During a press conference on Friday, Minister Roth said: "M80 Capital II is a fund designed to provide expertise in digitalisation and transformation, a particularly important niche in the context of the double green and digital transition. The fund primarily targets traditional SMEs, which find themselves in an increasingly complex environment. This investment underlines our commitment to supporting our economic fabric and our determination to promote economic diversification by encouraging innovation. I am particularly pleased with the positive effects that this investment will have on the Luxembourg ecosystem. This through the involvement of local banks, but also through collaboration opportunities with key players such as the University of Luxembourg and Luxinnovation."

Minister Delles added: "The investment in the M80 II fund constitutes an important step in supporting the development of small and medium-sized enterprises, which undeniably constitute the engine of Luxembourg’s economic growth. Indeed, this fund evaluates the investment projects of SMEs requiring financing and offers an external perspective on the options available to them relating to internal restructuring needs, particularly in the area of ​​digital and sustainable transition. We therefore support our SMEs as best as possible and the incorporation of a 'private equity' fund is a strong moment to bring new skills to the Luxembourg ecosystem."

Marjut Falkstedt commented: "I am delighted to see the LFF2 programme continue its implementation, make investments and thus contribute to the sustainable development of the Luxembourg economy. This investment in M80 Partners' new fund will serve to boost digitalisation efforts, growth and expansion of European businesses, in line with the broader policy objectives of the European Union, the EIB and the Luxembourg government."

Peter Maenhout, Managing Director of M80, concluded: "Luxembourg is a dynamic market for ambitious SMEs ready to innovate and grow. With the support of the Luxembourg Future Fund II, M80 can intensify its efforts to identify and collaborate with these companies, in order to support them in realising their potential. Our goal is always to help companies generate value for their customers, employees, owners and investors."