Process

Dansk Vækstkapital’s board of directors determines its investment policy and criteria and decides which funds to invest in. Dansk Vækstkapital only invests in funds and not directly in companies, and the companies must therefore approach the funds and not Dansk Vækstkapital.

A number of criteria must be met if a fund is interested in an investment from Dansk Vækstkapital. In order to be an eligible candidate, funds must submit a detailed Private Placement Memorandum and necessary documentation specifying how the criteria will be met, to Vækstfonden’s secretariat. You need to submit a presentation of the fund that describes in detail how it intends to meet Dansk Vækstkapital’s investment criteria.

Based on the material submitted, the secretariat will prepare a recommendation for the board, which will then decide what funds to invest in. If you have any queries concerning the selection process or the criteria, please direct them to the secretariat.

 

Investment criteria

WHEN ASSESSING WHETHER TO INVEST IN A FUND WE LOOK AT A NUMBER OF CRITERIA, INCLUDING THE FOLLOWING:

Team
The team in question has to have relevant experience, and together the team members should possess the necessary strategic and operational knowledge to manage the fund successfully. The team members must be able to demonstrate that they work well together and that they have access to a strong network, which can support their investment strategy.

Investment strategy
There is a clearly defined investment strategy, that describes in detail the value creation in the companies until their exit. The investments must comply with fundamental social and ethical principles.

Track record
The team should be among the best investors in its field and have demonstrated its ability to create returns on invested capital from previous or current investments. Results must be documented in relation to the selection of investments, the structuring of investments, the development of a portfolio companies and exit.

Processes
Structured work procedures has to have been implemented, ensuring a consistent and efficient execution of the investment strategy. The fund’s work is systematic in relation to value creation and risk management, demonstrating clear structures for the division of responsibilities. The processes cover documentation and communication – including reporting.

Structure and key terms
The fund has to have a clear legal and fiscal structure with transparent terms that conform to market practices and balance returns and risks for all parties involved.

Notice
To be considered for a possible investment from Dansk Vækstkapital, it is a prerequisite that the criteria above be described in detail. You need to submit a presentation of the fund that describes in detail how the fund intends to meet Dansk Vækstkapital’s investment criteria. To get an understanding of the detailed requirements placed on each item, download the list of investment criteria from the box on the right.

 

Investment policy

The funds’ return and size

Dansk Vækstkapital II invests in unlisted funds with a view to achieving a competitive and double-digit return for the combined portfolio of funds. The funds need to be of a size – and have critical mass – that makes them commercially viable, building upon the existing skills of established fund managers who possess specialist knowledge. Therefore, the required minimum fund size is usually DKK 400-500 million (EUR 54-70 million).

This minimum requirement may on the grounds of return, in certain situations be waived, for instance regarding sector specific investments.

Requirements of fund managers
Dansk Vækstkapital II invests in funds that focus on growth companies to which the fund managers actively contribute with value creation.

The fund managers must have extensive field-specific experience corresponding to the scope stipulated in the fund’s investment strategy. Furthermore, the managers must have a proven track record regarding value creation and generating return. Dansk Vækstkapital II always conducts its own independent due diligence.

Responsible investments
The funds must adhere to fundamental social and ethical principles in relation to their investments.

 

 

CSR-policy

At Dansk Vækstkapital we want to create growth and return in an ethically and socially responsible manner. Therefore, we include environmental, social and governance considerations in our decision-making and in our daily procedures. We require the funds we invest in to act responsibly, and we follow a number of established principles for responsible investment ourselves.

Our points of reference for the CSR policy are the UN Principles for Responsible Investments (UNPRI) and the principles outlined in the UN Global Compact initiative. Furthermore, we follow the codes and guidelines established by  Invest Europe (the European Private Equity and Venture Capital Association, EVCA) and the Danish Venture Capital and Private Equity Association (DVCA).

 

Frontpage

What we invest in

Dansk Vækstkapital II is a private investment fund that invests in a wide range of funds under private management, including venture-, small and mid-cap- and mezzanine funds. Up to 1/3 of the capital can be allocated to venture funds investing in young companies and approximately 2/3 will be allocated to funds focusing on established small and medium-sized companies.

How much capital is available?
The agreement on Dansk Vækstkapital II increases the risk capital available to entrepreneurs and small and medium-sized companies by up to DKK 2,63 billion.

Who is in our board?
The Board of Directors consists of Ulrik Spork (chairman), Birgit Wøidemann Nørgaard, Peter Carøe, Jens Peter Toft and Kent Stevens Larsen.
Robust funds with competitive returns – Read more about our investment policy
Companies must approach funds directly – see a complete list of possible funds in Dansk Vækstkapital’s portfolio

 

About Dansk Vækstkapital II

WIDE FOCUS – COMMERCIAL INVESTMENTS

Dansk Vækstkapital II is a private investment fund that invests in a wide range of funds under private management, including venture funds and small and mid-cap funds. Around 1/3 of the fund’s capital is aimed at the venture area (start-ups), while the other 2/3 are allocated for established small and medium-sized companies.

ATP has made the biggest contribution to the Fund’s equity, with a pledge of DKK 200 million, while Danica Pension and PensionDanmark have pledged DKK 150 million each. Provided that there are interested investors, there will be an additional funding set. The new fund, which is part of the Danish Government’s Growth Package, is a continuation of the cooperation on risk capital, which Government and the pension funds initiated in 2011, with the establishment of Dansk Vækstkapital I. The Danish Growth Fund functions as a secretariat for Dansk Vækstkapital II.

 

History
On November 30th 2015, the Danish Government reached an agreement with a number of the largest pension funds in the country to establish Dansk Vækstkapital II which, among other things, gives new and smaller companies access to new risk capital:

  • The establishment of Dansk Vækstkapital II is a continuation of the cooperation on risk capital that was initiated by the Government and the pension funds in 2011, with the establishment of Dansk Vækstkapital I.
  • Dansk Vækstkapital II contributes to making risk capital available to company start-ups as well as existing small and medium-sized companies with significant growth potential.
  • The pension funds are exposed to a greater risk in Dansk Vækstkapital II than in its predecessor. The direct investments of the pension funds are raised from 25 % in Dansk Vækstkapital I to at least 33 % in Dansk Vækstkapital II, and the share of the so-called venture investments is raised from 20 % to 33 %, respectively.
  • Dansk Vækstkapital II is a “fund of funds”, which invests in funds run by professional private managers who, then, invest in companies within their respective competence area.
  • Dansk Vækstkapital invests in a wide range of funds, including venture funds and small and mid-cap funds. Around 1/3 of the fund’s capital is aimed at the venture area, while the other 2/3 are intended for established small and medium-sized companies (buyout).
  • Dansk Vækstkapital II has an independent, professional board of directors appointed by the Danish Minister for Business and Growth, after nominations from the investors in the Fund.
  • Investment decisions are taken by Dansk Vækstkapital II’s Board of Directors following recommendations from the secretariat. The Board of Directors can only make investments, which have been given a positive recommendation by the secretariat.
  • The Danish Growth Fund plays the role of a secretariat for Dansk Vækstkapital II.
 

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What we invest in
Dansk Vækstkapital II is a private investment fund that invests in a wide range of funds under private management, including venture funds and small and mid-cap funds. Up to 1/3 of the capital can be allocated to venture funds investing in young companies and 2/3 will be allocated to funds focusing on established small and medium-sized companies.

How much capital is available
The agreement on Dansk Vækstkapital II increases the risk capital available to entrepreneurs and small and medium-sized companies by up to DKK 10 billion.

Who is in our board
The Board of Directors consists of Ulrik Spork (chairman), Birgit Wøidemann Nørgaard, Peter Carøe, Jens Peter Toft and Kent Stevens Larsen.

 

Board of directors

THE BOARD DETERMINES THE FUND’S INVESTMENT POLICY AND CRITERIA AND DECIDES WHICH FUNDS TO INVEST IN

 

Cases

Dansk Vækstkapital II has not yet invested in any funds.