Compañía Española de Financiación del Desarrollo, COFIDES and the State General Reserve Fund (SGRF), the Sultanate of Oman’s sovereign wealth fund, have selected MCH Private Equity (MCH) to manage the joint investment fund created by both entities following a rigorous bidding process that was launched at the end of December 2017.
SGRF and COFIDES, the latter acting on its own behalf and as manager of the FCPJ Foreign Investment Fund (FIEX), are the sole investors of the fund (together with the additional commitment of the grantee). It involves a 50/50 joint investment between Omani fund and the Spanish public sector of 100 million Euros, in such a way that COFIDES will contribute 1 million Euros from its own resources and 99 million Euros from the FIEX, which COFIDES exclusively manages on behalf of the State Secretariat for Trade Commerce, attached to the Ministry of Economy, Industry and Competitiveness.
The Spain-Oman COFIDES/FIEX-SGRF Fund will make investments in companies of Spanish mid-cap groups with international projection plans with the objective of benefiting the interests of both countries with an initial focus on Oman and Spain. The main sectors focus of the Fund are construction materials, manufacturing, mining, tourism, logistics, health, infrastructure, energy and food-agri business.
The Fund will allow Oman to benefit from the experience and technological knowhow of Spanish companies through the creation of employment, technology transfer and investment profitability. It will also provide Spanish companies with a new financing instrument to encourage their expansion abroad, the consolidation and growth of the parent company and, at the same time, contribute to the development of Oman and Spain.
Spain-Oman COFIDES/FIEX-SGRF Investment Fund came in the wake of the MoUs signed in different fields during the royal visit of His Majesty King Juan Carlos I of Spain to Oman in 2014.
The State General Reserve Fund (SGRF) was established by Royal Decree 1/80 in 1980. On behalf of the Government of Oman, the SGRF manages the reserves under its responsibility to achieve the best possible long-term benefits with acceptable risks, by investing in a diversified portfolio of asset types in more than 40 countries around the world.
COFIDES is a combined private-public concern, which since 1988 has provided financial support to Spanish enterprises abroad. COFIDES manages the FIEX and FONPYME funds on behalf of the State Secretariat for Trade, within The Ministry of Economy, Industry and Competitiveness. The stockholders include the Bank of Bilbao Vizcaya Argentaria (BBVA), Santander Bank, Popular Bank, Sabadell Bank and CAF (Development Bank of Latin America).
MCH is a private equity firm based in Madrid focused on middle market companies. Since its creation in 1998, it has advised 4 funds (MCH Iberian Capital Fund I, II, III and IV) with aggregate funds under management of 850 million Euros. In addition, MCH manages the divestment of AC Capital Desarrollo II’s remaining portfolio and a growth Fund (Unigrains UAF) specialized in the food and agribusiness sector, in partnership with Unigrains.
MCH Iberian Capital Fund IV is the latest investment vehicle with total capital commitments of 350 million Euros and a targeted investment ticket between 20 and 80 million Euros. MCH investor base is comprised by an international base of recognized institutional investors, funds-of-funds and large family offices.