Creates a partnership between Invest-NL and Invest International, resulting in the establishment of the Netherlands' inaugural national promotional organization
The Dutch government has announced a significant move to create the Netherlands' first national promotional institution (NPI) by merging Invest-NL and Invest International. This new entity aims to provide Dutch businesses with a broader range of financing options, advance sustainability, and boost the country's global relevance.
The Merger's Goals
The merger's primary objectives include expanding access to financing for Dutch entrepreneurs, enhancing support for sustainability and innovation, creating a stronger public investor, and contributing to global development.
By offering a wider range of financing options, from venture capital to long-term investment, across all business growth stages and markets, the new NPI will provide Dutch entrepreneurs with more opportunities to scale both domestically and internationally.
The merger will also combine Invest-NL’s focus on sustainability-driven impact investing with Invest International’s role in financing Dutch solutions to global challenges, aligning with the Sustainable Development Goals (SDGs).
Addressing the Netherlands' Challenges
The new NPI aims to address several challenges facing the Netherlands, particularly in its business climate, innovation, transitions, and strategic autonomy.
By providing more financing options and support, the institution will improve the business environment, helping companies scale domestically and internationally. This is crucial for addressing the issue of companies moving abroad due to these challenges.
The merger will also create more room for innovation, particularly in emerging technologies and industries, ensuring Dutch businesses remain competitive.
In addition, the institution will take responsible risks to support transition tasks in energy, sustainability, and circular economy projects, helping the Netherlands meet its climate and societal objectives.
By boosting financing capacity and international reach, the merger strengthens Dutch strategic autonomy in key economic sectors, making financing available for critical technologies and sustainable growth even in times of economic and geopolitical uncertainty.
Expected Benefits
The merger is planned to start collaboration from 2026, with full integration by January 1, 2028, pending parliamentary and European regulatory approvals. Until then, transitional funding is being allocated to ensure smooth alignment of objectives and operations.
In summary, the merger will create a powerful national investment institution designed to address the Netherlands’ business and innovation challenges by improving financing access, supporting sustainable transitions, and enhancing Dutch strategic economic positioning on the global stage.
The Dutch cabinet has allocated €250m to Invest International from future Invest-NL budgets, starting with €150m next year, followed by €100m in 2027. Moreover, the new NPI will be able to raise funds independently on the capital market thanks to a state-backed guarantee.
Meanwhile, another significant development in the impact investing sector is the €92m first close of an impact fund by SHIFT Invest. Additionally, CFM and Argos Partners will manage a shariah-compliant Malaysian infrastructure fund.
As the merger progresses, it will be interesting to see how these developments shape the Dutch and global investment landscapes, particularly in the areas of climate and environment, infrastructure, private equity, biodiversity, EU funding, and impact investing for pensions.
- The new National Promotional Institution (NPI) in the Netherlands will aim to broaden its scope to include financing in various sectors, such as private equity, venture capital, and long-term investments, to support businesses during the energy transition.
- As the country transitions towards a sustainable future, the NPI will assume a crucial role in funding projects related to energy, sustainability, and the circular economy, emphasizing the importance of biodiversity conservation in these initiatives.
- One anticipated benefit of the NPI's enhanced financial capabilities and global reach is the opportunity for Dutch businesses to grow within their domestic market and expand internationally, thereby addressing the issue of companies leaving the country due to unfavorable business conditions.
- With the merger aligning closely with Sustainable Development Goals (SDGs), the Dutch government plans to allocate €250m to Invest International from future Invest-NL budgets, demonstrating a commitment to advancing sustainability in the country's finance and industry sectors as well as global development.
