The government issued a decision reaffirming its approval for the Fund Manager of Financial Instruments in Bulgaria EAD (Fund of Funds - FoF) to participate in alternative investment funds. The FoF was granted such an authorisation on 26 July 2019 on the basis of a regulatory act which has in the meantime been repealed. On that basis, the Fund of Funds already participates in three alternative investment funds for the implementation of financial instruments.
The current authorisation by the Council of Ministers is in line with the new Regulations on the Implementation of the Public Enterprises Act. It is necessary in order to ensure the timely, effective and lawful implementation of equity instruments under the Operational Programme Innovation and Competitiveness (OPIC) 2014-2020.
An alternative investment fund is a company jointly incorporated by the FoF as a public investor and private investors. The fund is managed by a financial intermediary selected by way of a public procurement procedure. In accordance with the investment strategy attached to the financial agreement between the FoF and the Managing Authority of OPIC 2014-2020, five instruments for equity and quasi-equity investments are implemented through alternative investment funds. The total public resources allocated for this purpose amount to approximately EUR 150 million.
Three of those financial instruments are now active. The fourth one is in the final stage pending formal registration. The fifth one is in the process of being awarded by public procurement.
Fund Manager of Financial Instruments in Bulgaria EAD is a fully State-owned company. The rights of the State in the company are exercised by the Minister of Finance. The company manages the financial instruments implemented under programmes co-financed by the European Regional Development Fund, the European Social Fund and the Cohesion Fund, as well as the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund in Bulgaria.
