Denmark’s PKA increases private equity investments with new DKK 22bn fund

Danish pension fund provider, PKA, has established a new private equity fund with its subsidiary IIP Denmark, worth DKK 22bn.

With the new fund, PKA Private Funds IV, PKA is continuing its strategy to invest in unlisted companies and is increasing its commitment to IIP by 40 per cent. The subsidiary now manages over DKK 75bn for the pension fund.

Commenting, PKA investment director, Michael Nellemann Pedersen, said: "We want to support the opportunities of small and medium-sized enterprises in the Nordic countries, Europe and the United States. Therefore, investing in unlisted growth companies through private equity funds is an important part of our strategy.

“As a long-term investor, we can go in and support the development of companies, while increasing their value and generating a return for our members.”

Since 2012, PKA has built up a mature portfolio of unlisted investments at IIP. With the new fund, the pension fund will both reinvest large parts of the returns made by the existing investments, while extending the commitment to IIP.

"IIP has delivered very satisfactory returns, and this has been done at low cost compared to what is normally seen in the private equity sector. We believe that IIP, with new capital and a strengthened mandate, can continue the results that ultimately contribute to good pensions for our members,” Nellemann Pedersen added.

IIP managing partner, Anette Eberhard, looks forward, together with the rest of the team at IIP, to continue to find and select the best funds to invest in on behalf of PKA's members.

    Share Story:

Recent Stories

Podcast: How can a cross-border approach to pensions benefit multinationals?
In this podcast, Irish Association of Pension Funds CEO, Jerry Moriarty and AMX Head of Client and Manager Development, Aaron Overy, discuss with European Pensions Editor, Natalie Tuck, how a cross-border approach to pensions can benefit multinational companies.

Podcast - How are investors reacting to climate change in the Nordics?
In this podcast, BNP Paribas Asset Management’s Chief Sustainability Strategist, Mark Lewis, and AP7’s Head of ESG and Communications, Johan Florén, discuss with European Pension’s Editor, Natalie Tuck, how investors are reacting to climate change in the Nordics.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.