Local private stakeholders are coming together to establish an association that aims to spur further activity in the private investment space, with a new association to be launched on Thursday (tomorrow) during an event at the Casino Maltese in Valletta.

The Private Equity Venture Capital Association (PEVCA) Malta will also promote the country as a destination for private equity and venture capital firms and funds.

A core issue of the Maltese business ecosystem, that was identified long ago and that has seen several steps being taken in an attempt to mitigate it, is the lack of private investment in established businesses and start-ups in a manner that is conducive to their continued growth.

Malta’s start-up incubators have seen a number of successful ventures pass through their doors, and public support is considerable, with grants and tax credits offered through Malta Enterprise, loan guarantees through the Malta Development Bank, and seed guarantees through MIMCOL – but actual private capital is usually only poured into these fledgling firms when they seek investment abroad.

Government and private operators alike have attempted to shift perceptions among local investors and create an outlook that is perhaps less risk-averse through initiatives like the Malta Start-Up Festival, Pitchora and Shark Tank, and the new Malta Venture Capital Fund launched just this week by Government.

Heading the new association as chairperson is Martin Galea, non-executive chairperson of insurance giant MAPFRE Middlesea who previously served as managing director of furniture maker and importer Joinwell. Mr Galea also served as vice-president of The Malta Chamber and president of the Federation of Industries, and as board member at Malta Enterprise.

The secretary general of PEVCA Malta is Herald Bonnici, who previously led Malta Government Investments. During his tenure at the helm of the holding company for state-owned firms like Petromal and Gozo Channel, there was a push to extend its activities into the fund of funds space in a bid to bolster the start-up ecosystem. He also was responsible for the setting up of a network of sovereign wealth funds in Europe, Middle East and North Africa.

Other board members include Stephanie Farrugia from Ganado Advocates and Michael Portanier from Mediterrania Capital Partners, together with Albert Alsina, Mark Aquilina, Nick Calamatta and Paulianne Nwoko.