European Venture Capital Fund (EuVECA) - such funds being the subject of the European Union Regulation 345/2013.
The regime is optionally available to fund managers in the European Economic Area (EEA) that fall below the €500m threshold of the Alternative Investment Fund Managers Directive (AIFMD). It gives a passport for raising capital across the EEA by marketing to qualified investors and subject to registration, observance of certain rules for investment and observation of regulatory requirements. Investment has to be primarily in Small and Medium-sized Enterprises (SMEs). Borrowing (leverage) by the fund is not generally allowed.
EuVECA is distinguished from a European Social Enterprise Fund (EuSEF) mostly by its investments which are not required to have the primary objective of achieving measurable, positive social impacts.
A fund that grows beyond the €500m limit must gain authorisation under the AIFMD - subject to which it may continue to use the EuVECA designation if it meets the other EuVECA requirements.