PFA invests in a new fund for Danish growth companies

PFA has invested DKK 150 million in Blue Equity’s new fund, which aims to provide small and medium-sized Danish companies with better access to capital while generating attractive returns for pension customers.

PFA has allocated DKK 150 million to Blue Equity’s fourth fund, which targets small and medium-sized Danish growth companies. The investment is part of PFA’s efforts to ensure attractive long-term returns on customers’ pension savings while enabling pension capital to contribute to growth, job creation and competitiveness in Denmark and Europe. 

Blue Equity invests in companies with proven business models and the potential to scale further, typically operating in the space between traditional venture capital and private equity, where access to funding is often limited. 

“We have invested in the fund because we believe Blue Equity can deliver competitive returns for our customers. At the same time, the fund operates in a segment where many businesses struggle to secure funding precisely at the stage where they need to take the next step in their development,” says Peter Tind Larsen, head of alternative investments at PFA. 

Although the investment represents a small portion of PFA’s total investment portfolio of more than DKK 700 billion, it forms part of a broader strategy where pension capital is deployed through specialised managers with experience in close collaboration with company owners and management teams. Through its previous funds, Blue Equity has demonstrated that it is possible to combine investments in smaller companies with solid returns, a critical prerequisite when PFA invests customers’ pension savings. 

Pension plays a central role

Small and medium-sized enterprises play a crucial role in business and employment in Denmark and Europe. At the same time, they often face challenges when seeking the capital and expertise needed to professionalise and scale their operations. 

“The pension sector plays a central role in ensuring that capital is also available to this growth segment. For our part, it is about investing long-term and responsibly through managers who possess the necessary specialisation and proven track records,” says Peter Tind Larsen. 

For PFA, it is essential that investments in venture and growth capital form part of a robust, long-term pension portfolio. 

“We want to invest more in Danish and European growth companies, and we will continue to do so in the future. However, it must always be done in a way where the risk and expected returns align and meet our responsibility to our customers,” says Peter Tind Larsen.