PEVCA Malta

PROMOTING THE MALTESE ECONOMIC ENVIRONMENT

P OW E R I N G PROSPERITY PEVCA Malta is a hub for collaboration, innovation, and industry growth with a diverse array of stakeholders and a membership base spanning varying strategies and expertise. Secretary General, Herald Bonnici, tells us more Writer: Rachel Carr | Project Manager: Kieron Harvey

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ositioned as a cutting-edge and vibrant financial hub, the picturesque archipelago of Malta, nestled in the heart of the Mediterranean, offers a strategic location between Europe and Northern Africa.

This unique geographical advantage attracts substantial foreign investment, fostering a dynamic financial services sector.

Malta’s membership in the EU ensures that the industry constantly evolves, with exciting growth opportunities, innovation, and international exposure.

An idea proposed by a group of organisations and individuals who recognised the need for a centralised platform to encourage private investment on the island resulted in the creation of the Malta Private Equity and Venture Capital Association (PEVCA Malta).

“We serve as a central meeting place for industry players to connect, learn, and represent the industry while advocating for necessary regulatory changes to support the sector’s growth and development,” introduces Herald Bonnici, Secretary General of PEVCA Malta.

The association brings together institutional investors, private equity and venture capital (VC) funds, accelerators, family offices, advisers, and service providers to educate the business community.

Since its inception in 2023, the association has become Malta’s primary private equity and VC hub, whose goal is to solidify its position in the years ahead.

The association was officially launched in March 2024 in the presence of the Minister for Finance and the Shadow Minister for Finance, with the primary aim to promote EME Outlook Issue 59 | 3

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private investment in Malta while positioning it as a centre for private equity and VC funds.

PEVCA Malta is a non-profit organisation and does not make investments, however, investors may look for a wide range of businesses depending on their interests, expertise, and investment strategy.

“Some investors may focus on specific sectors, geographical areas, or stages of business development, while others might look for businesses with certain operational or financial requirements.

Ultimately, investors are looking for businesses that have the potential to provide a significant return on investment (ROI),” Bonnici asserts.

ENCOURAGING ENTERPRISES The financial industry in Malta is flourishing, with notable growth in fund administration, asset management and servicing, corporate banking, insurance, and pensions.

Bonnici is therefore naturally excited about this dynamic sector and the promising future it offers.

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THE FINANCING PROCESS Investing in private companies and funding startups involves several strategic stages designed to help entrepreneurs gather the required resources and funding to bring their ideas to life.

PRE-SEED FUNDING – Entrepreneurs use their resources to develop and grow their start-ups while seeking guidance and assessing viability.

The primary aim of this stage is to assemble a team and create a minimum viable product (MVP) to showcase the product’s potential and attract additional investment rounds.

SEED FUNDING – Involving more substantial investment, often from angel investors or earlystage VC firms, this investment is intended to help the start-up grow and reach certain milestones.

SERIES A, B, AND C – The start-up may go through several funding rounds as it grows. Each round typically involves larger amounts of money from institutional investors, such as VC firms.

INITIAL PUBLIC OFFERING (IPO) – The start-up may go public, meaning shares are sold to the general public and traded on the stock exchange.

“ W E B E L I E V E T H AT T H E P R I VAT E E Q U I T Y A N D VC I N D U ST RY CO U L D B E CO M E A M A J O R E C O N O M I C P I L L A R F O R M A LTA” – H E R A L D B O N N I C I , S E C R E TA R Y G E N E R A L , P E V C A M A LTA

“It provides employment opportunities for over 17,000 individuals, indicating a robust job market. Furthermore, the financial services industry in Malta is wellregulated with a strong focus on compliance and risk management, ensuring a safe and stable environment,” he enthuses.

Malta is continuously improving its regulatory framework, promoting innovation, and expanding its range of financial services.

As part of this effort, the association contributes to stimulating economic growth by organising local and international events tailored to the needs of its members and the wider business community.

To attract new members, PEVCA Malta disseminates information through its portal and social media platforms, showcasing itself as the country’s go-to organisation for private equity and VC. The association promotes itself with events, where it can engage with various stakeholders such as startups, family offices, investors, advisers, and service providers through a reach-out programme.

“Leveraging Malta’s membership in the EU and the Commonwealth, the country boasts a highly skilled English-speaking workforce and is ideally located with strong connections to Africa, the Middle East, and the regions beyond.

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“By participating in these events, we can showcase the benefits of investing in Malta and establish it as a preferred destination for private equity and VC,” notes Bonnici.

Indeed, investors evaluate a start-up’s potential success based on several factors, including a welldefined business plan that outlines capital usage and how it will generate ROI. Additionally, investors look for start-ups that address customers’ significant problems or ‘pain points’.

The start-up team’s skills, experience, and dedication are crucial considerations. Evidence of customer growth or positive revenue metrics can show potential investors that there is a demand for the startup’s products and services, however the market must be large enough to make the venture worthwhile.

INVITING INVESTMENT With a vision of establishing the island as a hub for collaboration, innovation, and growth, the association is in discussion with various enterprises, including accelerators, businesses, government entities, and international organisations.

To further its goals, PEVCA Malta is participating in various international events, such as a panel discussion in Prague where the association has been invited by Finance Malta to discuss the country as a hub for private equity and VC. Additionally, in July, it will host international private equity expert, Gary Quin, who will deliver a talk about the industry.

“PEVCA Malta is particularly interested in start-ups, technology, sustainable finance, and innovation, as these sectors catalyse economic growth.

“We believe that the private equity and VC industry could become a major economic pillar for Malta.

Therefore, we are working on several 6 | EME Outlook Issue 59

PEVCA MALTA’S PROGRAMME OF ACTIVITIES To advance economic growth, encourage a dynamic and innovative private equity and VC industry, and create a more favourable business environment within the country, the association aims to provoke change in the business community through several key initiatives: PROMOTING PRIVATE INVESTMENT – Positioning Malta as a destination for private equity and VC firms and funds will increase capital inflow for the business community, providing the necessary finance to grow and innovate.

NETWORKING AND COLLABORATION – Serving as a hub where financial players gather to learn, network, and represent the industry. This will facilitate cooperation and knowledge sharing, leading to new business opportunities.

RESEARCH AND EDUCATION – Studying private equity and VC and promoting an educational and training programme for its members and the wider business community.

LOBBYING – Persuading policymakers to make the necessary changes to support the sector could result in a more favourable business environment for private equity and VC firms and, by extension, the businesses they invest in.

INCITING A CAPITAL-RAISING CULTURAL CHANGE – Encouraging more businesses to seek private investment will lead to a more vibrant and diverse economic ecosystem.

ENHANCING THE REGULATORY FRAMEWORK – Working towards the changes required to expand the sector will make it easier for businesses to raise capital and operate effectively.

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informative sessions, podcasts, member interviews, and exclusive research reports,” Bonnici announces.

The association is also collaborating with the European Institute of the Mediterranean (IEMed), the leading think-and-do tank in the region, on a research project that will shine a light on private equity in Malta.

“The research will identify gaps and opportunities in this area and be published in the coming months.

We are also looking into facilitating deal flow, matching capital seekers and allocators to promote private investment on the island.”

PEVCA Malta’s membership is open to anyone in private equity and VC, regardless of their background or profession. However, potential candidates must demonstrate a track record related to or complementing private investments to obtain membership.

“We welcome individuals and organisations with experience or expertise in private equity and VC or those looking to expand their knowledge and network in these

“ P E V C A M A LTA I S P A R T I C U L A R LY INTERESTED I N S TA R T- U P S , T E C H N O L O G Y, S U S TA I N A B L E FINANCE, AND I N N O VAT I O N , A S T H E S E S E C TO R S C ATA LY S E ECONOMIC GROWTH” – H E R A L D B O N N I C I , S E C R E TA R Y G E N E R A L , P E V C A M A LTA

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areas. Our community is diverse and inclusive, and we believe everyone has something valuable to contribute,” Bonnici highlights.

THE FUTURE OF FINANCE The association provides its members with exclusive access to industryleading events and expertise, ensuring they are open to new opportunities both in Malta and abroad.

“Being a member of the association is beneficial because it is a platform that promotes collaboration and innovation among a diverse membership base, including fund managers, administrators, investors, family offices, professional services firms, insurance companies, and accelerators,” emphasises Bonnici.

This diverse membership base spans various strategies and

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expertise within Malta’s private capital ecosystem.

“By participating in regulatory policy advocacy, PEVCA Malta represents and proactively works towards necessary regulatory changes to support the sector.

Moreover, we assist such firms with establishing themselves on the island.”

The association’s primary objective is to foster the growth of the private equity and VC sector. To achieve this, the plan is to work closely with all relevant stakeholders and collaborate in every possible way.

“As part of our plans for the year, we have undertaken extensive research in the private equity domain, and we intend to share our findings through a series of informative sessions for our members and the wider community.

“Our outreach will include both

face-to-face interactions and podcasts, allowing us to cater to the diverse needs of our members and business community,” Bonnici sets out.

PEVCA Malta aims to showcase the country’s immense potential as a preferred destination for private equity investment and is making great strides towards building a solid financial community.

“As we move forward, we strive to strengthen our membership base, and we are happy to share that we have already received a significant number of applications from various organisations.

“With the support of the various sectors that have applied, we are confident that we will be able to achieve our goal of fostering the growth of Malta’s private equity and VC sector,” Bonnici concludes.

Tel: +356 2123 5406 info@pevca.mt

www.pevca.mt

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PEVCA MALTA Tel: +356 2123 5406 info@pevca.mt www.pevca.mt

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