"Co-investment programs constitute a powerful economic policy instrument, combining public and private capital, enhanced scrutiny and multiplied impact, to accelerate the sustainable and competitive development of the economy."
Nuno Mota, Head of Equity, BPF
Co-investment programmes promoted by a national promotional bank play an essential role in revitalising the economy, acting as instruments capable of combining financial efficiency, risk reduction and strategic investment guidance.
The most distinctive feature of this model is the leveraging of public money through the mobilisation of private capital, enabling the impact of public resources to be multiplied without compromising budgetary sustainability. By co-investing side by side with private investors, as is the case with Banco Português de Fomento, each public euro is transformed into a catalyst for additional investment, generating multiplier effects that strengthen the funding available for innovative companies and growing SMEs.
This leveraging mechanism also has a validation and credibility dimension. The simultaneous involvement of private investors introduces a natural system of "two pairs of eyes", where each investment opportunity is analysed by different entities with complementary expertise. Independent assessment by co-investors reduces information asymmetries, increases the robustness of decisions and diminishes the risk of adverse selection. When a project passes this dual scrutiny, it gains greater legitimacy and confidence, both for the market and for future funding rounds.
At the same time, co-investment programmes contribute decisively to reducing market asymmetries. In economies where access to capital is limited for young, technology-driven or R&D-intensive companies, risk-sharing becomes crucial. The promotional bank enters precisely these segments, mitigating financing barriers and promoting digital transition, innovation and industrial competitiveness.
The combination of capital and structured support also leads to the professionalisation of investee companies. The presence of private and public co-investors introduces more rigorous governance practices, clear performance metrics and greater strategic discipline. Continuous monitoring, combined with national expertise, prepares companies to scale and internationalise.
Beyond the direct impact on companies, these programmes strengthen the entrepreneurial and venture capital ecosystem. By sharing risk with private investors, the promotional bank stimulates the activity of funds and family offices, increases deal flow and creates a virtuous cycle of innovation and investment. This dynamism translates into more skilled employment, greater productivity and economic modernisation.
Finally, by directing investment towards areas considered priorities—such as energy transition, digitalisation, territorial cohesion and industrial resilience—the promotional bank ensures that public-private leveraging contributes to long-term national strategic objectives.
