Bavarian Transformation Fund

The Bavarian Transformation Fund targets medium-sized companies and investment funds with a registered office or permanent establishment in Bavaria. The goal is to strengthen their equity base to address transformation projects in the context of digitalization, climate change, and mobility shifts.

The Bavarian Transformation Fund promotes projects that contribute to the transformation of medium-sized companies. This includes investments and operating resources necessary for adapting to new business models or introducing adjusted production processes and products. In principle, companies from all sectors are eligible for funding, with the exception of certain sectors.

The Bavarian Transformation Fund offers equity strengthening in the form of open and mezzanine participations. The participation amount typically ranges between 2.5 million and 10 million Euros per company or fund investment. Disbursement occurs in tranches, and the term of the participation is generally 4 to 12 years.

To utilize the funding, certain legal, financial, and operational conditions must be met. These include cooperation with a private lead investor, submission of a business plan, and ensuring the overall financing of the project. The program operates free of state aid and is subject to EU state aid rules for risk finance.

The application for participation by the Bavarian Transformation Fund must be submitted before the conclusion of the participation agreement with the private lead investor. The procedure involves submitting documents to the management company, which conducts the review and, if necessary, further due diligence measures.

The Bavarian Transformation Fund is based on the participation principles of Transformationsfonds Bayern GmbH & Co. KG and operates within the framework of the EU Guidelines on State Aid to Promote Risk Finance to ensure state aid-free funding.