Three Danish pension funds, together with AP Moller Capital, committed a total $550 million to a new Africa-focused infrastructure fund.
The 250 billion Danish kroner ($39.6 billion) PKA, Hellerup; 225 billion kroner PensionDanmark, Copenhagen; and 115 billion kroner Laegernes Pension, Fredriksberg, said in a joint news release Wednesday they had committed to Africa Infrastructure Fund I. The strategy is managed by AP Moller Capital.
The strategy focuses on investments in infrastructure, particularly in transportation and energy, in Africa. It will be available to other Danish and international investors for the next 12 months, and has a targeted lifetime of 10 years. The initial target is to make 10 to 15 investments.
"We are delighted to be among the seed investors in Africa Infrastructure Fund I," said Torben Möger Pedersen, CEO at PensionDanmark, in the release. "We see this as a unique opportunity to invest in a region with high economic growth and attractive investment opportunities alongside a partner — AP Moller Capital — that has extensive investment experience combined with a strong network and a promising pipeline of potential investment projects. The fund is a good example of how we as investors can combine attractive investments for our members and at the same time contribute to the fulfillment of the UN Sustainable Development Goals by mobilizing private capital on a large scale."
Spokesmen for PensionDanmark and PKA said each fund committed $150 million. A spokeswoman for Laegernes Pension said its commitment was $100 million.