PEVCA is a new organisation with familiar faces, with many of Malta’s largest financial and corporate stakeholders involved. Why was it set up?

The Private Equity and Venture Capital Association Malta, known as PEVCA Malta, brings together a diverse array of stakeholders, including fund managers, direct investors, institutional investors, family offices, financial institutions, accelerators, and professional services firms. It is committed to driving private investment, serving as a central hub where industry players can convene, learn and network, championing regulatory reforms to fortify and expand the private capital ecosystem, and cultivate cultural change within the business community.

What does Malta offer private equity and venture capital firms and funds?

Malta presents an array of compelling attributes for private equity and venture capital firms and funds. Among these is the stable and pro-business environment, a skilled and multilingual workforce, and a strategic location in close proximity to Europe, Africa and the Middle East. The robust regulatory framework overseen by the Malta Financial Services Authority (MFSA) upholds stringent governance, transparency and investor protection standards crucial to private equity and venture capital undertakings. The favourable fiscal regime positions Malta as a competitive financial jurisdiction, while Government policies cultivate an environment that is supportive of entrepreneurship and innovation.

“Malta’s private equity and venture capital landscape has experienced notable growth; however, it presents opportunities for foreign investors due to several discernible gaps.”

What kind of opportunities are there for venture capital in Malta?

The country has solidified its position as a dynamic startup hub, particularly in sectors such as fintech, gaming, healthcare, and biotech, in addition to AI. Meanwhile, the Maltese Government has implemented policies and incentives aimed at attracting foreign investment and fortifying local startups, encompassing tax incentives, grants, and specialised support through entities like Malta Enterprise, Malta Venture Capital and Gaming Malta.

Are there any gaps in Malta’s private equity and venture capital ecosystem that foreign investors should be attuned to?

Malta’s private equity and venture capital landscape has experienced notable growth; however, it presents opportunities for foreign investors due to several discernible gaps.

Despite the presence of some local funds, the overall pool of capital available for private equity and venture capital remains relatively modest. There is also a distinct disparity in funding for early-stage startups, as local investors exhibit a preference for later-stage investments. This presents an opportunity for foreign investors to provide crucial support to these startups and potentially benefit from their high growth potential.

Malta’s burgeoning tech and fintech sectors are currently underserved by investors with extensive sector-specific knowledge. Therefore, foreign investors possessing experience in these areas can not only provide financial backing but also impart valuable mentorship and strategic guidance.

By addressing these gaps, foreign investors can play a pivotal role in fortifying Malta’s private equity and venture capital ecosystem while concurrently benefiting from investing in an expanding market.