BROAD FOCUS – COMMERCIAL INVESTMENTS

Dansk Vækstkapital is a private investment fund which makes commercial investments in small & mid cap, venture and mezzanine capital funds. The capital stems from Danish pension funds, three quarters of which is a loan invested by Vækstfonden.

Dansk Vækstkapital invests in a wide range of funds, and these funds in turn invest in all types of industries. The aim is to create more growth companies as well as delivering competitive, double-digit returns to the investors. Dansk Vækstkapital only makes commercial investments in funds managed by professional, private managers with specialised knowledge within the types of companies they invest in. Furthermore, investments in funds can only be made if, in addition to the capital supplied by Dansk Vækstkapital, they can be supplemented by private capital.

History
On 13 January 2011, the Government and F&P, ATP and LD agreed to allocate risk capital to the amount of DKK 5 billion to entrepreneurs and small and medium-sized companies with growth potential. The agreement resulted in the establishment of Dansk Vækstkapital on the basis of an investment model, which:

• builds on the market economy investor principle
• ensures pension savers appropriate returns
• to the greatest extent possible draws on existing knowledge and know-how
• ensures a cost-effective management of investments
• acts as a catalyst to promote greater private engagement rather than replacing private investors
• is for a fixed-term only and in accordance with the EU’s rules on state aid.