The Catalan Government has approved a contribution of 50 million euros for the Arrels Fund. The objective of this fund, promoted by the Catalan Institute of Finance (ICF), is to enter the capital of strategic companies so that they maintain their roots and their decision-making centers in Catalonia. These stakes will never take the control of the company, but they will have the capacity to influence. The public bank of the Generalitat also contributes 50 million euros, so that the Arrels Fund will have a total allocation of 100 million. The part contributed by the Generalitat directly will come from the coffers of the Department of Economy and Finance.
In the current global context, maintaining economic and industrial activity in Catalonia becomes a priority and, in this sense, the possible loss of control of this strategic business activity, to investment groups outside Catalonia, is an upside risk. For this reason, the Government has shown itself committed to promoting measures that favor and strengthen the roots of Catalan companies and their decision-making centers in Catalonia.
The ICF will make these investments, which will be characterized by being long-term and by the entry into capital of the companies. These must have a registered office and tax office or permanent establishment in Catalonia and must also be a driving force for the country's entire productive fabric, that is, with strong links with Catalan companies and suppliers.
Both the Department of Economy and Finance and the Department of Business and Labour may make joint proposals for lines that may be subject to investment. It will be the public catalan bank, through their management autonomy and with their team of professionals specialized in the analysis, evaluation and monitoring of capital investments, who will decide the investments to be carried out.
With this fund, the entity, with extensive experience in the field of capital investments, expands its catalogue of financial instruments to target mature, solvent companies with high turnover that are essential for the economic and social development of Catalonia.
The Arrels Fund is an instrument that already exists in other territories, such as the Basque Country, where the government has the Finkatuz fund, through which it has participated in relevant companies in the Basque Country such as ITP Aero, CAF and Kaiku.
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