The Oman Investment Authority (OIA) has reached an agreement with the Spanish Company for Development Funding (Cofides) to launch the Spain Oman Private Equity Fund II (SOPEF II). This is the second joint fund launched by the Sultanate of Oman’s investment vehicle and the Spanish public-private company specialising in the management of sovereign wealth funds.

The new joint fund has been allocated €100 million. Together with the first fund, the two organizations are providing a total of €300 million in investment to support Spanish companies, and with plans to expand internationally. For the OIA, this is a tool that it hopes will attract these companies to expand into its country and the markets where it has influence.

Experience and technological knowledge
The agreement to set up the SOPEF II was signed by the president of the Oman Investment Authority, Abdulsalam Al Murshid, and the president of Cofides, José Luis Curbelo. In addition to the return on investment itself, the Persian Gulf country could benefit from the experience and technological knowledge of Spanish companies through technology transfer.

The new fund helps diversify the OIA’s Future Generations Fund. This instrument was created to generate financial surpluses and transfer knowledge and experience to the Omani market. The agreement follows on from the success of SOPEF I, which has already invested almost the entire amount allocated to it when it was set up.

The Spain Oman Private Equity Fund (SOPEF I), created in 2018 and managed by the firm MCH Private Equity Investments, has achieved a net internal rate of return (IRR) of around 13.8%. Its investments have been executed by acquiring minority shares in a total of 11 Spanish companies, to which it also offers assistance with international expansion. Most of these companies belong to the agri-food, renewable energy, technology, industry, and health and lifestyle sectors.

Expanding the commitment
As Al Murshid put it, “The first fund we launched with Cofides had numerous successes. Moreover, the performance of the first fund is among the key factors that led us to decide to expand our commitment through this second agreement. At the OIA we manage several joint ventures that have benefited from these reciprocal relationships and strategic alliances with different countries. These actions are in line with the Sultanate of Oman’s economic diplomacy efforts, which reflect our country’s perspective in establishing mutually beneficial associations”.

Curbelo, for his part,  said, “At Cofides we are very pleased with the success and effective roll-out of SOPEF I, which has been an unrivalled tool for strengthening the competitiveness of both countries. We hope that this new fund will continue to help Spanish companies grow and consolidate their position in the international market”.

^{Photo: Cofides}