ArmInfo. On November 20, at its regular meeting, the Armenian government decided to acquire the third and final stake in the EU-Armenia SME Fund as part of long-term economic development programs.
As stated in the explanatory note to the document, the second program within the framework of long-term economic development programs was approved by the RA government decree of May 21, 2020, for a total of 80 billion drams.
Under the Program, the state directly participates in the EU-Armenia SME Fund, managed by Amber Capital Armenia, for a total amount equivalent to $3 million, by acquiring shares in the Fund.
"One of the main goals of the Fund is to create a precedent for the activities of similar funds, which, in turn, will contribute to the development of the capital market and the formation of alternative financial instruments in the Armenian economy, as well as improve the level of corporate governance in general," the document states.
The EU-Armenia SME Fund began its operations in January 2020. The Fund's investors include organizations such as the European Bank for Reconstruction and Development and the European Union, pension fund managers, the Dutch Development Bank, and others.
The Government of the Republic of Armenia joined the Fund in 2021. Specifically, on July 8, 2021, the Program was approved, along with amendments to the Decision, and on November 26, 2021, a subscription agreement for an investment in the Fund's equity participation was signed, according to which the Government of the Republic of Armenia acceded to the Fund's Limited Partnership Agreement.
By both the Decision and the Subscription Agreement, the Government committed to investing a total of USD 3 million in the Fund. The Government of the Republic of Armenia plans to acquire Fund shares in three installments, each amounting to up to USD 1 million. The acquisition of each subsequent share is carried out based on a decision of the Government of the Republic of Armenia, based on the results of the submitted investment report for the amount of the previous share.
As of October 31, 2025, the Government had actually transferred a total amount of USD 1,953,501 to the Fund. Therefore, given that the amount of shares already acquired is approaching USD 2 million, and the total amount of USD 119,041.98 submitted by the Fund and not yet paid by the Government, can only be disbursed based on a Government decision.
The project package also includes the reports submitted by the Fund, as well as a calculation of the Fund's return for 2024 based on the audited financial statements submitted by Amber Capital Armenia, calculated using the multiple on invested capital (MOIC) ratio.
The EU-Armenia SME Private Equity Fund, managed by Amber Capital, was launched in Armenia in January 2020 with the support of the European Union (EU), the European Bank for Reconstruction and Development (EBRD), Amundi-ACBA Asset Management, the Hrair and Anna Hovnanian Foundation, and the Amber Capital investment team. Since then, the Fund has attracted additional capital from the Armenian National Interests Fund, C-Quadrat Ampega Asset Management Armenia, the Dutch Enterprise Development Bank (FMO), the Armenian government, and a number of diaspora investors, bringing the total committed capital to over USD 60 million. The Fund aims to finance the sustainable growth of Armenian SMEs through equity investments and the implementation of high environmental, social, and corporate governance standards. This transaction marks the 14th investment by the EU-Armenia SME Fund.
