The establishment of Growth Fund was a pivotal reform for Public Administration and the management of public assets in particular. Prior to Growth Fund’s establishment, the management framework was fragmented, with multiple involved parties and frequent overlap of competences. As a result, it was very difficult to design and implement a single strategy for the development of public assets and, ultimately, to increase their overall value. Fully aware of its role as the executive vehicle for public policies implementing its Strategic Plan, Growth Fund designed a framework for managing its assets, around two axes:
Growth Fund is responsible for the coordination and general alignment of its subsidiaries with specific standards and targets, which are shared by all subsidiaries. In any case, the subsidiaries are urged to improve the quality of the products or services they offer, to reduce their environmental footprint and to implement other relevant actions.
Growth Fund’s management framework includes the analysis of the internal and external environment of each subsidiary. Internally, the level of maturity and the strengths and weaknesses of each subsidiary are analyzed, while the circumstances governing each sector (external environment) are also taken into account. As a second step, subsidiaries are classified into categories. For each category, a specific approach has been set regarding Growth Fund’s role as a holding company, as the parent company, will be called upon to play. The main groups into which the portfolio companies have been classified are the following:
Classifying subsidiaries with similar characteristics into a specific category makes it easier to implement Growth Fund’s strategy and monitor the achievement of its goals. For instance, for subsidiaries considered to have challenges in the execution of fundamental actions, Growth Fund must act as an Active Shareholder, centralizing key functions, such as – for example – the group procurement system.
Quality governance of the SOEs is believed to be the key success factor to achieve Growth Fund’s objectives.
Growth Fund’s subsidiaries are active in significant sectors of the Greek economy, such as energy, water and sewerage services, infrastructure, transportation, food and supply, etc., sectors which affect critical dimensions of the Greek economy, such as growth, employment, competitiveness and extroversion. In addition, they employ over 31,000 professionals and their activities and services have a critical impact on the citizens’ daily lives.
Growth Fund, operates under a single institutional framework, combining assets of the Greek State and participation in Stated-Owned Enterprises. Our mission is to optimize their management, drive corporate growth, modernize operations, and maximize returns, all for the benefit of the economy, the environment, and the citizens.
