For FIEX and FONPYME, Law 66/1997, in number 2 of its article 116, the designation of COFIDES as manager of the Funds, in its own name and on behalf of the Funds. And For FONREC Regulation 5/2021, article 17.
Operational management role and responsibilities of COFIDES, as Fund manager, are listed in articles 5 (FIEX) and 13 (FONPYME) of the Development Regulation, including inter alia:
Evaluate investment proposals
Submit to the EC/TIC such proposals
Perform legal and financial closing
Monitor portfolio investments
Represent the Funds in the decision-making bodies of portfolio companies
Monitor the activity of capital expansion funds or private equity funds participated by the Funds and participate in their decision-making or administration bodies, if this does not entail that COFIDES assumes direct management of the companies in which the fund invests. Act as depositary of the financial documentation of investments.
Do administration tasks with the strictest principles of financial prudence.
Propose to the EC/TIC divestments
Act legally in the interest and on behalf of the Funds
Sign collaboration agreements that may take place with other investors who wish to participate in the activities of the Funds
To propose to the EC/TIC a limit of assumption of risk per investment, as well as any other operational limits that are considered necessary to establish, to ensure the proper functioning of the Funds and risk monitoring.
Act as Secretary of the EC/TIC
Undertake differentiated and independent accounting for each Fund.
Prepare the annual budgets of the Funds
In general, the Manager will carry out all those actions and initiatives that are necessary for the proper functioning of the Funds and will provide the EC/TIC with all the information and documentation it requests.
For the execution of these management activity, COFIDES structure includes:
Chairman /CEO, General Manager and General Secretary, usual roles for the positions.
Business development: identification of new investment opportunities
Investment and Portfolio management: analysis of investment opportunities, negotiation of investment terms and conditions, legal and financial closing of investments, monitoring throw out the investment life and divestment
Risk management: second opinion on every investment decision, monitoring and divestment; portfolio review to direct the business development effort (i.e. countries, industries, size of investee companies)
Impact and Sustainability: review of impact, environment and social risk of invested companies.
Finance department: accounting and treasury management
Department for internal controlling, auditing and quality: compliance usual roles.
COFIDES Board of Directors, set up by representatives of its shareholders (with the Spanish public State with a majority stake).
COFIDES Steering Committee is composed by its chairman /CEO of COFIDES, the general director and the deputy directors of each area.
It is the responsibility of the Steering Committee to analyze and approve/deny all those issues that must be presented to the EC of the Funds and those that are strategic, routine or specific that are relevant for the proper functioning of the Funds, among which are:
Documents and reports that must be submitted to the instances referred to in the previous paragraph or to other instances. By way of example and not limitation, the following should be noted:
Proposals for investment operations, divestment, refinancing, and other in the portfolio companies.
Proposal for a Strategic Plan, Commercial Plan, portfolio companies monitoring, E&S monitoring plan.
Economic-financial information - Activity Reports, Financial Statements, budgets, other accounting and management documents.
Other matters such as Country Reports, four-monthly updates of the price grid, project reports with judicial proceedings in progress.
Corporate management issues: Objectives and monitoring of Objectives, HR, IT, legal compliance matters, Internal Control and quality including updates of Operating Procedures, Internal and external audits, authorization of contracting of suppliers
Any other issues, initiatives or weekly priorities deemed appropriate to address the proper functioning of the company.
Each deputy director is responsible for implementing in its department the decisions taken by the EC and the Steering Committee.
COFIDES Steering Committee task and responsibilities are set in the internal management regulations of COFIDES and publicly disclosed for all COFIDES employees.