Growthfund: Corporate governance as a driver of growth, trust and value

Ten years after its establishment, the Growthfund is undergoing a new phase of development. From a holding organization that was created as a forced institutional condition in a demanding period for the country, it is being transformed into a modern investment and development institution, with the mission of creating economic and social value for the benefit of the Greek economy and citizens.

This transition, in addition to the expansion of the portfolio and the assumption of new responsibilities, concerns the way in which the organizations are managed, decisions are made and results are produced. For the new Growthfund, corporate governance is an essential development tool and a basic prerequisite for the creation of sustainable value.

Following the absorption of the Hellenic Republic Asset Development Fund and the Hellenic Financial Stability Fund, and the development of a comprehensive platform of investment tools, the Growthfund is evolving into a National Investment Fund in line with international Sovereign Wealth Funds. It currently manages a portfolio worth over €12 billion, has more than 20 subsidiaries and operates in 11 strategic sectors of the economy, from transport, infrastructure and energy to innovation and technology.

In the context of our expanded role, our mission is to build a sustainable production model, leveraging public assets, modernizing the operation of public enterprises, attracting investments and accelerating the implementation of projects of strategic importance.

To serve our upgraded mission, we have developed a clear strategic model based on 3+1 axes: transformation of subsidiaries, development of national infrastructure, investments in the New Economy, and acceleration of projects of strategic importance through the Strategic Contracts Unit.

This strategy produces measurable results. Indicative examples are the structural upgrade of Athens’ urban transport that has been underway recently, the mapping of all Hellenic Public Properties Co. real estate, the radical restructuring of Hellenic Post, and the repositioning of GAIAOSE as a body for the development of railway real estate.

At the same time, important projects and tender procedures related to the development of critical infrastructure and the attraction of private investment are progressing. These include the exploitation of regional airports and port infrastructure, the entry of a strategic investor in Hellenic Saltworks and the redevelopment of the Thessaloniki International Fair, a project that is expected to become a reference point for Thessaloniki and Northern Greece as a whole.

Through our investment tools, such as the Hellenic Innovation and Infrastructure Fund, PHAISTOS, the Hellenic Center for Defence Innovation and PHAROS AI Factory, investments are being launched in critical sectors of the New Economy, such as digital transformation, energy transition, the Blue and Circular Economy, and defence innovation. These are investments that will enhance the productivity of businesses and the economy as a whole, contributing to the interconnection of academic research with the real economy.

However, no strategy can deliver without the appropriate governance framework. International experience shows that organizations that operate with clear rules, measurable objectives and effective accountability and transparency mechanisms achieve better performance, attract high-level executives and create greater value for citizens and the economy.

For this reason, the establishment of modern corporate governance standards is a strategic priority for the new Growthfund. Transparency in procedures, meritocracy in the selection and evaluation of executives, and accountability in decision-making are fundamental principles that now govern the operation of the Group and its subsidiaries, sending the message that Greece is changing in practice.

The results of this reform are already visible. In the last year alone, 60 new members of Boards of Directors – Chairmen, Managing Directors and non-executive members – were appointed through open, meritocratic and transparent selection procedures. Additionally, for the first time, the Managing Directors of public companies operate with specific performance indicators (KPIs) and clearly defined objectives, while employee evaluation and motivation systems have been established and substantial steps have been taken for the convergence of remuneration with the standards of the private market.

Executives with significant international experience are opting to return to Greece and take up positions of responsibility in the Growthfund, recognizing that a modern and unified corporate governance framework has now been established that promotes transparency, meritocracy and professional management, while ensuring the independence of companies.

Two such examples are Stelios Frangos, CEO of the Hellenic Innovation and Infrastructure Fund, and Andreas Mavrommatis, CEO of TIF-Helexpo.

The next phase of the country’s development path will be determined by the implementation of strategic projects but also by our ability to build institutions and organizations that operate with consistency, transparency, meritocracy and accountability.

At the Growthfund, we are working in this direction on a daily basis. Because trust is the most valuable asset of any modern economy and good corporate governance is the foundation on which growth, competitiveness and long-term prosperity are built.

Published in “White Paper: The Greater Riviera”, NouPou Media’s special edition spotlighting the future of coastal Attica.