Launch of Orange Capital Enterprise Fund

10 September saw the launch of the Dutch Orange Capital Enterprise Fund – an initiative to help Dutch SMEs make better use of their growth potential.

The Orange Capital Enterprise Fund (Ondernemend Oranje Kapitaal) was initiated by several clients of ING Private Wealth & Asset Management with a view to nurturing and promoting SMEs in the Netherlands.

Making SMEs grow faster and wider – why?

At present the Netherlands badly needs a dose of optimism and can-do spirit. Hence the initiative of a group of successful incumbent and retired director/owners and CEOs to set up the Orange Capital Enterprise Fund – a fund of, for and by entrepreneurs and businesses. With its optimistic outlook, this Fund aims to make capital available to small and medium-sized enterprises (SMEs), thus giving the Dutch economy a boost while also offering investors an attractive and sustainable commercial return.

About the Orange Capital Enterprise Fund

The Orange Capital Enterprise Fund is a non-listed fund to which incumbent and retired director/owners, large businesses and institutional investors will contribute venture capital in order to help SMEs grow their operations and reach their full potential.

Lending alone is not sufficient to achieve this. It requires obstacles resulting from undercapitalisation of such businesses to be removed. And this can only be solved through a substantial equity injection.

Providing the necessary impulse on a structural basis calls for a concerted effort from the entire business community.

Substantial commitments

Talks are currently ongoing with a number of entrepreneurs, businesses and institutional investors, some of whom have already committed several tens of millions of euros. In the coming months OOK will continue to attract more investors, the ultimate object being to create a fund comprising at least EUR 100 million.

Growth path for the Netherlands

One of the key elements of the fund involves persuading investors to mobilise their networks and sector/marketing/product knowledge for the benefit of SME entrepreneurs. The capital contributions will mainly go to innovative SMEs and start-ups with good growth potential. Co-initiator Jan Hommen, CEO of ING Group: “This should help to put the Netherlands back on a growth path, with new products and new markets generating many new jobs.”

Joint initiative

Crucially, this is not an ING fund, but a joint initiative of Dutch businesses from a diverse range of sectors. FrieslandCampina, ING, Schiphol Group and VDL Group are all among the founding fathers of The Orange Capital Enterprise Fund. Moreover, certain extremely prominent members of the Dutch business community have also pledged their full support to help make the fund a resounding success (see the website mentioned below).

Kick-off

The kick-off took place at the Opening Bell ceremony of the Amsterdam Stock Exchange, followed by a short media event.

André Olijslager, chairman of the Supervisory Board of the fund and former chairman of the Nederlandse Vereniging van Participatiemaatschappijen, together with some of the key stakeholders and representatives of the founding partners (including Jan Hommen) presented the concept and structure of the fund.

Also attending were Bertholt Leeftink (director-general of Enterprise and Innovation at the Ministry of Economic Affairs) and Michaël van Straalen, (acting chairman of Royal Association MKB-Nederland, the largest entrepreneurs’ organisation in the Netherlands). Both shared their vision on the fund and its significance for Dutch business and industry.

More information

For information, please see the brochure Ondernemend Oranje Kapitaal – Van, voor en door ondernemers (sorry, Dutch only), which briefly sets out what the Fund stands for.
You can also visit the Fund’s website, www.ondernemendoranjekapitaal.nl.