What kind of investments will Dansk Vækstkapital II make?
Dansk Vækstkapital II invests in a wide range of funds which then invest in companies. The funds can invest in all types of industries and as such Dansk Vækstkapital can invest in:
– Small & mid cap funds – that is, funds that invest in companies of up to 1,000 employees and with a turnover of up to DKK 1,250 million.
– Venture funds.
– Funds which offer subordinated loan capital, including mezzanine capital funds.
A maximum of 20 percent of the capital may be invested in venture funds.
Why exactly this focus?
The aim is to ensure that the capital is allocated to companies that have the greatest potential for growth and are capable of delivering a competitive return to investors – regardless of which industry the companies are involved in. The wide investment scope makes this possible.
Are there any industries Dansk Vækstkapital II (the funds) cannot invest in?
No. Other than the general ethics and CSR requirements, the only requirement is that investments be made on commercial terms and that the funds be capable of yielding a competitive return.
Are they not, to a certain extent, the same kinds of funds which Vækstfonden already invests in today?
Dansk Vækstkapital II was established to increase the amount of risk capital and thereby promote growth. Dansk Vækstkapital II can, and will in some situations, make the same investments as Vækstfonden but this will usually only be in relation to venture funds. The majority of investments made by Dansk Vækstkapital II will be directed towards small & mid cap funds. Our expectations are that capital from Dansk Vækstkapital II will draw further private capital into the market by making the funds financially more robust and thereby more attractive to investors.
Will the fact that the pension funds have put a significant part of their capital at the disposal of Dansk Vækstkapital II result in fewer or more investments in venture funds in Denmark?
Overall, we expect that there will be more capital available, also for venture investments.
Can Dansk Vækstkapital II invest in foreign funds?
As such, there is no restriction in relation to where the funds are located. It is, however, clear that a concrete focus on investment in Danish companies is of significant importance. If we can contribute to attracting foreign capital and relevant competencies for the development of the Danish business, investments in foreign funds are also an option.
Can funds that receive capital from Dansk Vækstkapital II invest in foreign companies?
There is a specific focus on the development of Danish growth companies which includes developing an international profile as they expand. It could therefore become appropriate to make investments abroad as a part of an internationalisation process. Further, the funds will often have an international reach in order to create the best conditions for growth as well as returns and may therefore also invest in foreign-owned companies.