Danish pension scheme, PKA, has announced plans to invest in Scandinavia's first private fund for social impact investments, the Social Capital Fund.

The fund is currently worth DKK 80m, and has also had investment from Vækstfonden, Arbejdernes Landsbank and SI Safe.

Utilising social impact investments, it will aim to improve the quality of life for around 3,000 vulnerable Danes, whilst also delivering returns of 5-7 per cent.

As part of this, it will enter into agreements with 15-25 municipalities to provide investment into "concrete initiatives" designed to help vulnerable citizens, such as developing language skills in vulnerable children.

Commenting on the plans, PKA CEO, Jon Johnsen, emphasised that members want the scheme's work to show care for the Danes in the health sector and in the social area.

"Therefore, it makes very good sense for us to enter new investment areas, where we can both create a good return for the members and at the same time raise welfare and improve the quality of life for a large number of Danes," he stated.

“The investment and collaboration with the Social Capital Fund gives us important experiences, so that we can become even better at finding and developing good investment opportunities that support the social area"

Social Capital Fund leading partner, David Dietz, added: “With the fund, we hope to be able to finance important initiatives in areas where municipalities today do not have the opportunity to take on the risk by trying a new innovative approach.

“Likewise, it will be an important task for the foundation to assist skilled social organizations and companies with the necessary capital and knowledge required to spread effective efforts to as many citizens as possible. We hope to establish that it pays to invest in human potential.”

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