Investeringsfonds Groningen

Investeringsfonds Groningen (IFG) operates on a distinctive Fund-in-Fund model, allocating capital to investment funds that support SMEs within the Groningen province. This dual-purpose approach aims to generate both financial sustainability and meaningful social impact in the region. By partnering with professional fund managers and market participants, IFG creates a multiplier effect for its investments while maintaining market conformity. The fund is wholly owned by the Groningen provincial government but professionally managed by the Northern Investment and Development Company (NOM), leveraging over four decades of expertise in venture capital and fund management.

With a substantial fund size of €60 million and an operational timeline extending to 2035, IFG makes strategic investments in closed-end funds across the region. The fund maintains disciplined investment parameters, taking minority positions of maximum 49.9% in target funds with a cap of €7.5 million per investment. A key performance indicator for IFG is achieving a capital multiplier of at least 2, ensuring that every euro invested by IFG attracts an additional two euros from other investors. This approach maximizes economic impact while maintaining financial discipline.

IFG actively seeks partnerships with diverse financial entities including Venture Capital managers, Private Equity firms, Family Offices, and coordinated groups of Informal Investors. All fund initiatives must be executed by professional management teams with demonstrated expertise in their respective sectors. This collaborative approach ensures that investments benefit from both IFG's regional knowledge and the specialized industry expertise of its partners. The fund's commitment to reinvesting returns creates a sustainable investment cycle that compounds benefits for the Groningen economy over time.

The social impact dimension of IFG's mission focuses on strengthening Groningen's economic structure through market-conforming investments that generate both direct and indirect employment opportunities. By partnering with commercial entities and professional fund managers, IFG ensures that social objectives are achieved through sustainable business models rather than subsidies. This approach has positioned IFG as a catalyst for regional economic development, bridging the gap between public policy objectives and private sector investment criteria. The fund represents an innovative public-private partnership model that other regions have begun to study and emulate.