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Spain’s Co-Investment Fund (FOCO)

In Spain, the Council of Ministers of 27 December 2023 approved the creation of the Co-Investment Fund (also known as “FOCO” in Spain). The management of the Fund is entrusted to COFIDES and will have resources from the Next Generation EU instrument and a budget of €2 billion. The purpose is to mobilise resources from foreign investors, both public and private, to promote investments in Spain in strategic activities, such as those linked to the green and digital transitions, sustainable mobility, infrastructure, sustainable agriculture, and biotechnology.

Written by Luís F. Conde Berné, Head of Crisis Management and Business Continuity. AGM Abogados

The main features of the Co-Investment Fund are as follows:

  • The Fund will primarily engage in equity investments in private companies undertaking investment projects on the national territory .
  • FOCO investments will always be done jointly with a foreign co-investor. Co- investors may be either public financial institutions or foreign private institutional investors. Both national private investment vehicles and entities that attract foreign investors and foreign capital companies that participate in corporate structures in Spain will also be eligible.
  • The contribution of foreign co-investors must be at least equivalent to FOCO’s contribution.
  • The Fund will always take minority shares and the sum of the total public capital in both companies and funds can never exceed 49% of the total capital for each operation.
  • The Fund will be valid indefinitely, so that the returns obtained from the investments financed will be reinvested in new operations in line with the strategy and objectives of the Fund, in order to continue supporting the challenges associated with the sustainable transformation of the Spa nish productive model.

FOCO’s funding may be funding in direct companies or indirect (fund of funds).

Direct investment:

  • Priority will be given to equity or quasi-equity.
  • FOCO will align its profitability objective with that of the co-investors and will exclusively maintain a minority position in the projects.
  • Investment lines for the same company involving several projects may be financed as long as the maximum amount per company is not exceeded.
  • Minimum amount per transaction: EUR 10 million.
  • Maximum amount per promoter: EUR 150 million.

Indirect investment:

  • FOCO will invest mainly in Spanish equity funds or funds from other countries that include Spain as a destination for their investments.
  • The global portfolio strategy of the funds must have a solid track record in the strategic sectors defined by FOCO and investment teams with the experience and capacity to attract foreign investors to Spain.
  • Minimum amount per transaction: EUR 10 million.
  • Maximum amount applicable to vehicles of the same management company: EUR 150 million.


COFIDES is a public-private company specialised in the management of state funds that offers medium and long-term financing to private investments related to different public policy purposes. COFIDES directly manages funds aimed at supporting the internationalisation of Spanish companies, strengthening the solvency of companies that have been severely affected by the Covid-19 pandemic and attracting foreign investment to Spain through co-investment agreements that contribute to the modernisation of the Spanish production model. COFIDES also supports the management of the financial cooperation portfolio of the Spanish Agency for International Development Cooperation, which promotes sustainable development in emerging economies and developing countries. In the ownership structure of the company, the Spanish State holds 53% of the capital, while the remaining 47% is in the hands of Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Banco de Desarrollo de América Latina y el Caribe (CAF).