European Social Entrepreneurship Funds Regulation (EuSEF)

The European Social Entrepreneurship Funds (EuSEF) regulation, similar to the EuVECA Regulation, aims at boosting alternative investments in social entrepreneurship and is part of the Capital Markets Union plan to mobilise capital in Europe. The main requirement for funds is to have its primary objective on social undertakings (at least 70% of aggregate capital). SEFs comprise unleveraged closed-end funds smaller than EUR 500m with a lock-in period of five years and invest in companies that have achieved measurable positive social impacts. The EuSEF regulation was introduced to reduce the regulatory burden on SEFs compared to other alternative investment funds.

2019
2020
2021
2022
2023
2024
4
1
Implementation / enforcement 06/2013 - 06/2016
2
Discussion / consultation 06/2016 - 12/2017
3
Implementation / enforcement 09/2017 - 03/2018
4
In effect 03/2018 -

STATUS
Regulation on EuSEF has been amended in September 2017. The changes are in force since 1 March 2018.

The regulation was amended in 2017 resulting in a broader definition of companies that EuSEF can invest in (including services and goods generating social return). The objective of the amendment is to simplify crosss-border marketing of the funds, and to increase the attractiveness for investors to invest in the funds. The range of EuSEF eligible managers is extended after these amendments. This should increase diversification posibilities offered by EuSEF funds, improving their attractiveness to investors.

Further information:
European social entrepreneurship funds (EuSEF)

author
Ivo Habets Senior Manager
Categories: Financial Market Organisation