Denmark’s largest pension fund, PFA, has announced that it intends to invest up to 15 billion kroner in Danish companies over the next five to six years.
In a bid to generate better returns for its thousands of customers, the pension fund is on the hunt for Danish companies that are not currently listed on the stock market, but are lacking the finances to further expand.
“I think that we are going to be investing ten percent of our total investments over the next five years,” Henrik Heideby, the leader of PFA, told Børsen newspaper. “That’s about 30-40 billion kroner – half of which will go to Danish companies.”
Heideby went on to reveal that PFA plans to spread the investments out among a number of Danish companies in order to spread out the risk.
READ MORE: DONG board approved Goldman Sachs deal
Looking beyond sustainable energy
While PFA is well versed in green and sustainable energy investment, and has invested heavily in wind turbines and in Dong Energy in recent years, it is embracing diversification in other markets.
“We don’t want to be majority owners in the companies. Experience shows that companies solely owned by pension funds fare poorly,” Heideby said. "We could invest together with a private equity fund, which would be ideal.”
On Tuesday, PFA invested an unknown million kroner figure into Funen toy producer Kompan.
Founded in 1917, PFA serves about 650,000 customers and maintains a pension capital of around 370 billion kroner.
