Greece taps BlackRock FMA to build sovereign wealth fund

Greece will soon launch its inaugural sovereign wealth fund called National Investment Fund with the help of BlackRock's Financial Markets Advisory.

Kostis Hatzidakis, Greece's minister of national economy and finance, affirmed the country's plans to set up the first sovereign wealth fund this week, which will reportedly have an initial capital of EUR300 million.

Hatzidakis told a news conference that the ministry "hired BlackRock to propose the best corporate structure for the fund," Athens-based newspaper Kathimerini wrote.

Hatzidakis flagged last December that the wheels were in motion in establishing the National Investment Fund and that it will receive funding from the state and initially financed with 50% of the valuation of the water supply companies of Athens and Thessaloniki, EYDAP and EYATH.

The fund will also invest mainly in the field of new technologies and green investments, namely in Greek companies with good growth prospects, competitive advantage, and a strong management team, he said.

It will seek to co-invest with other public instruments or schemes, and equity investment funds.

Hatzidakis said this includes closed-ended business holdings funds established in Greece with the participation of the Hellenic Development Investment Bank, other private equity funds active in Greece, and credit institutions.

As part of the launch, the government will consolidate its privatisation agency (HRADF) and bank bailout fund (HFSF) with the existing Hellenic Corporation of Assets and Participations (HCAP), which was established in 2017 and has about US$7,416,948,095.