ATP, Hilleroed, Denmark, allocated 6 billion Danish kroner ($979 million) to a new long-term private equity strategy, which will invest in Danish companies, a spokesman confirmed.
The strategy, ATP Long-Term Danish Equity, will be run in-house by a three-person team with the goal of increasing returns and boosting Danish jobs.
Under the new strategy, the 906.6 billion Danish kroner pension fund will invest in sectors such as IT, medical technology, pharmaceuticals and renewable energy over the next three years.
ATP will take minority stakes of 20% to 49% in Danish companies with at least 250 million kroner in revenue. ATP has not yet finalized the hiring of executives who will run the strategy, the spokesman said.
ATP said in a news release Friday that many Danish companies will require capital to execute their transitions to a low-carbon economy as well as the digital transformation of their business models.
"As ATP is now increasingly making direct long-term investments, we are part of ensuring growth in Danish companies and thus also expect to support the growth of the Danish economy and create Danish jobs while the returns will benefit everyone in Denmark. We have a special responsibility here in Denmark, and we see good opportunities for contributing to the development of more large Danish companies while at the same time creating good risk-adjusted returns for our members," Bo Foged, CEO of ATP, said in the release.
ATP already invests 25 billion kroner in private equity through its in-house arm, ATP Private Equity Partners. The spokesman did not provide details of the fund's total private equity allocation.
