What is Arrels Fund?

The Arrels Fund is an initiative promoted by the Government of the Generalitat of Catalonia, managed through the Catalan Institute of Finances (ICF), with the aim of preserving and strengthening the roots of Catalan companies and their decision-making centers in the territory.

The Generalitat's public banking contributes 50 million euros and the Department of Economy and Finance also contributes 50 million euros, so that the Roots Fund will have a total endowment of 100 million.

This fund expands the ICF's catalog of financial instruments and is aimed at mature, solvent companies with high turnover.

With the support of

What is its goal?

In a global economic context where the risk of relocation of strategic companies is a growing reality, this fund aims to ensure that companies with a driving role in the Catalan productive fabric maintain their commitment to the industrial development of Catalonia.

Inspired by similar models such as the Finkatuz fund of the Basque Country or the venture capital initiatives of the Government of Navarra, the Arrels Fund is designed to invest in the long term in companies considered strategic. These companies must have their registered and tax domicile or permanent establishment in Catalonia and contribute significantly to the economy of the territory through their activity and their links with suppliers and local companies. The objective is to guarantee the continuity and growth of these companies without them losing their decision-making centre in Catalonia.

This support allows for the reinforcement of the commitment to the economic and social development of Catalonia, ensuring that the Catalan business fabric continues to be a driver of growth and innovation within and outside its activity cluster.

Management and investment criteria

ICF, with its experience in capital investments and its team specialized in the analysis and monitoring of projects, will be responsible for managing the fund's investments. These will be made by taking minority stakes in the capital of companies, without a desire for control, to influence their strategy and consolidation within the territory. The investment is intended to be made in a minority way in the companies in which it participates. Indicatively, between a minimum of 3% - 5% and a maximum of 20%. In no case may it exceed 49%.

In addition, both the Department of Economy and Finance and the Department of Business and Employment may propose lines of investment that respond to the industrial and economic needs of the country.

Which companies will be invested?

Investment will be made in financially solid companies with recurring income and profits, which have a legal form included in the law on capital companies, and which also potentially meet the following characteristics:

Turnover volume preferably greater than €100M with an employment level of at least 50 workers.

They must have a value proposition, impact and roots in the territory supported by a strategic or investment plan. Their activity must be a driving force for the industrial fabric, for example, generating business opportunities in Catalonia due to their wide customer base and relationships with local suppliers.

They must also show the capacity to invest in R&D, technological development, generation of new projects, and collaborate with companies and research centers in the territory. More specifically, priority will be given to investments that:

Are aligned with the implementation of the National Industrial Plan 2022-2025.
Strengthen Catalan and European strategic autonomy.
Facilitate more strategic industrial decision-making from Catalonia.