Why was Dansk Vækstkapital II established?
Dansk Vækstkapital II was established to increase the amount of risk capital in the market and, in so doing, create more growth companies, turnover and jobs. To ensure investors a competitive, double-digit return, the capital is invested on 100 percent commercial terms.
How many funds and eventually companies will benefit from this new capital?
We expect to invest in 10-15 new funds. These funds will presumably be able to invest in around 100 Danish companies within the next five years and perhaps more than double that within the next 10 years.
How much capital would normally be invested by Dansk Vækstkapital II?
We anticipate injecting money into 10-15 new funds with an expected commitment of DKK 200-500 million per fund.
How large a share will Dansk Vækstkapital II typically hold?
When Dansk Vækstkapital II invests, it is always a requirement that private capital is invested as well. The aim for Dansk Vækstkapital II is to hold a maximum of 50 percent of the shares so that, in addition to the capital from Dansk Vækstkapital II, further private capital is drawn into the market. Exceptions to this 50 percent limit may be made on rare occasions if the case is very strong. Dansk Vækstkapital II’s capital commitment to an individual fund may not exceed 10 percent of Dansk Vækstkapital II’s capital base.
How large a turnover and how many jobs will Dansk Vækstkapital II help create?
It is difficult to provide a precise figure, but the increase in turnover will be noticeable. Realistically speaking, the companies receiving capital from funds invested in by Dansk Vækstkapital II over the next 10 years could end up with as many as 20,000 employees.
What is the timeframe for Dansk Vækstkapital II’s investments?
According to the agreement between the Government (The Ministry of Business and Growth), F&P, ATP and LD, Dansk Vækstkapital can make new investments until the end of 2015. The funds which are invested in will typically have a lifespan of around 10-12 years.
When will Dansk Vækstkapital II be considered a success?
Dansk Vækstkapital II will be considered a success when the capital is put to work, first in the funds and then in the companies. Ultimately, the goal is that all the investments result in growth, turnover and the creation of jobs, together with a competitive double-digit return for the investors.