Why was Dansk Vækstkapital III established?
Dansk Vækstkapital III 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. We expect the funds to invest in approx. 100 Danish companies within the next five years.
How much capital would normally be invested by Dansk Vækstkapital III?
We expect commitments of DKK 100-250 million to each fund and seek to be a significant and active investor with a place in advisory boards.
How large a share will Dansk Vækstkapital III typically hold?
When Dansk Vækstkapital II invests, it is always a requirement that private capital is invested as well. The aim for Dansk Vækstkapital III 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 III 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 15-20,000 employees.
What is the timeframe for Dansk Vækstkapital III’s investments?
Dansk Vækstkapital III can make new investments until the mid or end 2025, depending on the timing of last closing. The funds which are invested in will typically have a lifespan of around 10-12 years.
When will Dansk Vækstkapital III 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.