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Last update : December 2006
The business purpose of Coopfond is to manage a mutual benefit fund for the promotion of co-operatives. This fund is generated by the collection of 3% of the annual profit made by all Italian co-operatives member of Legacoop (Lega Nazionale delle Cooperative e Mutue) and the residual worth of co-operatives who closed down. The company is supervised by the Italian Ministry of economic development.
Founded pursuant to Law n° 59 of 31 January 1992, Coopfond has operated since 1993 as a joint stock company with a share capital of Euro 120,000.
In twelve years of activity, the fund has accumulated (at date of last financial statements) a total of Euro 240 million and has agreed 380 investment files for a total investment of Euro 318 million. This investment in equity allowed the financed co-operatives to invest Euro 1508 million and preserve or create more than 15341 jobs.
By law, Coopfond may finance Italian co-operatives only.
The aims of Coopfond are
- To foster the co-operative development
- Manage and protect the assets of the mutual fund
- To invest in innovative project having a high social value
- To contribute to a territorial balance
- To develop alliances between the Co-operative movement and local communities
They mainly invest in three fields
- Promotion of new co-operatives
- Help existing co-operative wanting to develop
- Strategic participation (systems and networks, alliance, objectives)
- Investment in new and developing co-ops are for a duration of 5/7 years
The beneficiaries are selected on a financial plan which must be established in concordance with the business plan delivered by Coopfond. After 5/7 years the co-op must be self-financed and must be able to reimburse Coopfond.
Coopfond withdraws from the co-op by selling his shares to the co-operators.
The financed co-operative is monitored by Coopfond. Coopfond also provides help and assistance to the co-operative.
The beneficiaries are the following :
- New co-operatives : Coopfond invests up to 50% in the equity and may give a complementary loan for a duration of 5 to 7 years
- New companies in which co-operatives are the main shareholders : Coopfond invest up to 30% in equity + complementary loan if needed
- Developing co-operatives : Coopfond makes loans (on 5/7 years) which must be less than 50% of the investment needed
- Contribution to intermediary structures : Coopfond invest in risk capital in financial institutions of the co-operative movement, regional financial institutions etc.
- Others : the beneficiaries are heterogeneous (co-operatives, consortium, university, association), financed initiatives are such as training, research, promotion of the co-operative sector…
