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.
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.
FACTS ABOUT DANSK VÆKSTKAPITAL
DKK 3.0 bn
FUNDS IN THE PORTFOLIO