The dark side of EIB funds: How the EU’s bank supports non-transparent investment funds based in tax havens
Counter Balance has launched a report that critically analyses a little-known part of the European Investment Bank (EIB)’s operations: its use of private equity funds.
The report presents a number of statistics and facts about recent investment funds financed by the EIB during the period 2011-2015. The main findings are that:
– The EIB supports private equity funds incorporated in tax havens and problematic jurisdictions;
– There is a systematic lack of transparency involved in these types of operations, both from the EIB and the investment fund’s side;
– Cases of conflicts of interests and revolving doors are frequent since several fund managers previously worked for the EIB or other international financial institutions.
In this context, the report further challenges the business model underpinning this type of development finance.