Danish pension scheme PKA sets up €3bn private equity fund

On the 11/27/20 at 11:45AM


Adrien Paredes-Vanheule

The Danish pension scheme PKA has announced on Friday the establishment of a new private equity fund with its investment management subsidiary IIP Denmark worth DKK 22bn (€3bn).

With the PKA Private Funds IV, IIP now runs over DKK 75bn (€10.1bn) for the pension fund in private equity investments. PKA will fund this new product by both reinvesting returns from existing investments and expanding its commitment to IIP.

“We want to support the opportunities for small and medium-sized companies in the Nordic region, Europe and the US. Therefore, investing in unlisted growth companies through private equity funds is an important part of our strategy,” stated PKA’s investment director Michael Nellemann Pedersen.

He added that IIP, which was established in 2012, has delivered “very satisfactory returns”, and “this has happened at low cost compared to what is normally seen in the private equity area.”  In parallel to the fund launch, IIP has appointed new partners and has expanded its product range to include investments in venture capital funds.