Investment Strategy
COFIDES is Spain’s primary development finance institution, owned jointly by the Spanish government (through ICEX and ICO) and several major Spanish commercial banks. The institution was established to support Spanish business internationalization and promote sustainable economic development in emerging and developing countries. COFIDES manages its own balance sheet alongside several public funds, including FONPYME (focused on small and medium enterprises) and FIEX (focused on larger investments), giving it a diversified toolkit for supporting private sector development.
The fund investment program focuses on private equity, infrastructure, and impact funds operating in COFIDES’ target geographies, with particular emphasis on Latin America, Sub-Saharan Africa, and North Africa. COFIDES participates actively in the European Development Finance Institutions (EDFI) network, which facilitates co-investment and knowledge-sharing among European DFIs. This collaborative approach allows COFIDES to participate in larger transactions and access fund opportunities sourced by peer institutions.
COFIDES evaluates investments through a dual framework that assesses both financial viability and development impact. The institution has developed expertise in evaluating projects and funds in sectors where Spanish companies have competitive advantages, including renewable energy, infrastructure, agribusiness, and financial services. COFIDES increasingly emphasizes climate finance and gender lens investing as cross-cutting priorities in its investment strategy.
How to Approach
Fund managers seeking investment from COFIDES should demonstrate operations in the institution’s target geographies and alignment with Spanish development cooperation priorities. Strategies that involve Spanish company participation or expertise, or that target markets where COFIDES has active programs, may receive additional consideration. The institution engages actively with the EDFI network, and referrals from other European DFIs can be an effective pathway to engagement.
COFIDES’ investment team is based in Madrid and evaluates opportunities through formal submission processes. Managers should be prepared to provide detailed information on development impact, ESG practices, and geographic focus alongside traditional investment documentation. The due diligence process includes assessment of additionality, or the extent to which COFIDES’ participation catalyzes additional private investment that would not otherwise occur.
Frequently Asked Questions
What is COFIDES?
COFIDES is Spain's development finance institution, established in 1988 to support the internationalization of Spanish companies and promote sustainable development in emerging and developing countries. The institution provides financing through equity, quasi-equity, loans, and guarantees, and manages several public funds including FONPYME and FIEX.
How does COFIDES invest in funds?
COFIDES invests in private equity and infrastructure funds focused on developing countries, often alongside other European DFIs through co-investment platforms like EDFI. The institution also makes direct investments in projects involving Spanish companies operating in developing markets, with a focus on sectors including renewable energy, infrastructure, and financial services.
What geographies does COFIDES focus on?
COFIDES focuses on developing and emerging countries across Latin America, Sub-Saharan Africa, the Middle East, and Asia. The institution has a particular emphasis on Latin American markets given Spain's historical and commercial ties to the region, and also supports investments in North Africa and other regions where Spanish companies have active operations.
