HCAP as an Asset Manager

HCAP as an Asset Manager

The CEO Initiative Book is the special edition of Fortune magazine ‘The CEO Initiative Forum’. The publication includes a number of interviews from highly esteemed CEOS from the Greek market, among which the interview of HCAP’s CEO Gregory D. Dimitriadis.

How does HCAP promote a culture of transparency and a sense of responsibility and duty in its team of technocrats?

Transparency is the core governance value in HCAP, and to this end we adopt best international governance, supervision, and transparency practices. Transparency, accountability, and the framework of values defining corporate responsibility are essential obligations for all companies that engage in activities entailing environmental and social impact. They further expressly refer to the framework of binding principles and values of HCAP’s operations towards meeting its objectives. We have also launched a strategic partnership with the National Transparency Authority, to establish, in practice, a culture of openness, transparency and accountability across our subsidiaries. Our goal is to modernise Public Enterprises, ensure positive performance for the companies in our portfolio on a constant and long-term basis, and build relationships of trust and transparency with Greek society.

What is the purpose of HCAP’s role as an asset manager?

Our main objective is to create value for the Greek State and society. That is why HCAP is implementing drastic changes to transform into a Public Wealth Fund that takes on an active role in its portfolio management. By planning our future strategy, we are being practical. We have studied successful examples from across the world, and from the passive role of a mere “observer”, we are building on the international standards and best practices of successful Sovereign Wealth Funds to plan HCAP’s next day as an active stakeholder and modern asset manager. A significant change regarding the role and operation of HCAP is that measurable targets are set for both its subsidiaries and HCAP itself. To us, evaluation and effectiveness are intertwined. The next key step in our strategic plan is to utilise the evaluation focusing on our continuous improvement. And here lies the main difference in comparison with the past; through our expanded role, we will be operating with flexibility, implementing targeted interventions that will be determined in each case by the level of maturity and the actual development prospects of each subsidiary.

How do you perform the roles of both reviewer and asset manager, and how do you ensure carbon neutrality?

On the one hand, we apply modern business models in all our companies horizontally, and on the other hand, companies as assets, are classified according to their potential and their specific needs and, therefore, the role and level of intervention of HCAP are accordingly adjusted. Either as a reviewer, as in the case of PPC, which is one of the most mature companies of the portfolio, or as a problem solver, in cases such as EYDAP and the Hellenic Post, or finally, in cases such as the

“HCAP is a catalyst for digital transformation and provides impetus to the national effort, creating opportunities in the new normalcy created by the pandemic.”

Corinth Canal, in which we will have the role of an active shareholder. An important step in modernizing HCAP is strategically choosing sustainability as a key development pillar.

We are actively participating in the One Planet Sovereign Wealth Funds global network and are transforming all our subsidiaries according to ESG criteria. At the same time, through the creation of the Decarbonisation Index, we are contributing to the transition to a green economy.

How is the positive momentum of the economy reflected in the investor interest in Greek assets, and how do you leverage the available resources?

Greece today has exceeded itself to a great extent. Thanks to the institutional changes already achieved, the investment climate has significantly improved, and the country is repositioning itself on the international investment map, with greater expectations. This, in conjunction with its advantages (resources of Recovery Fund, ideal geographical location for green energy investments, largely underdeveloped public assets), can lead to the strengthening of investor interest, with beneficial results for the growth of the economy.

Aiming to leverage resources, HCAP is also taking on the role of an investor, planning development initiatives, as we recently did by participating in the PPC share capital increase with €105 million, while retaining the role of key regulator in the strategic decision-making process, thus protecting the interests of the Greek state.