Danske Bank is further cementing its position as one of Denmark’s key financial partners for Danish startup and growth companies. .

Going forward, Danske Bank will take over the management of the billion-kroner funds Dansk Vækstkapital I, Dansk Vækstkapital II and Dansk Vækstkapital III, as well as potential future Dansk Vækstkapital funds from the state-owned Export and Investment Fund of Denmark (EIFO).

“Our strategic purpose as a bank is to use the power of finance to release the potential in people and businesses – which is why the entrepreneurship ecosystem is a central focus area for us. In recent years, we have helped thousands of growth companies by providing capital, infrastructure and advice – and the Dansk Vækstkapital funds will enable us to further optimise growth conditions for startup enterprises for the benefit of the business community and society. Additionally, this also provides a unique potential to facilitate attractive investment opportunities for investors,” says Danske Bank CEO, Carsten Egeriis.

A key component of the ecosystem for startup and growth companies 
The first Dansk Vækstkapital-fund was established in 2011, and since inception a broad circle of investors has committed around DKK 9.4bn in all to the funds. The Danish state (EIFO) and several Danish pension providers count among the largest investors.
  
The funds provide venture capital to entrepreneurs and growth companies in order to both create growth and jobs in society and also an attractive return potential for investors. More specifically, Dansk Vækstkapital has invested in multiple venture, growth and buyout funds, which are an important part of the ecosystem for startup and growth companies in the business community.

Extensive tendering process
The choice of Danske Bank as asset manager is the result of an extensive tendering process. EIFO was created last year by an amalgamation of the three state-owned funds Vækstfonden, EKF Danmarks Eksportkredit and Danmarks Grønne Investeringsfond, but as part of the merger approval process, the EU Commission decided that EIFO could no longer invest in buyout funds.

“After a tendering process, Danske Bank was assessed to be the best future home for the Dansk Vækstkapital funds. The socioeconomic value for Denmark of being able to raise new capital through Dansk Vækstkapital is significant, and Danske Bank is well qualified to take the lead on this. We are optimistic about the future for Dansk Vækstkapital and keen to consider future investment opportunities deemed relevant for EIFO,” says EIFO CEO, Peder Lundquist.

At extraordinary general meetings, investors in the Dansk Vækstkapital funds have approved Danske Bank as the new asset manager, with the reins expected to be transferred to Danske Bank at the end of the year.

Perfect match for Danske Bank Asset Management
In future, the Dansk Vækstkapital funds will be part of Danske Bank Asset Management’s large alternative investments platform.

“As one of our strategic focus areas, we have massively ramped up our alternative investment capabilities in recent years. With our solid operational setup and a long and strong track record in the area, Dansk Vækstkapital is an excellent match for us in relation to both our current competences and our ambitions for the future,” explains Danske Bank Asset Management CIO, Thomas Otbo.

He also highlights Danske Bank’s expansive distribution network as a major asset in relation to raising capital for future funds.

“Dansk Vækstkapital will enable us to build on our long experience of raising venture capital for investments in growth companies via both institutional investors and private wealth customers,” says Thomas Otbo.

Strengthening our organisation
A modest number of employees will transfer with the Dansk Vækstkapital funds from EIFO to Danske Bank.

“Dansk Vækstkapital’s investments in venture and buyout funds have been hugely successful, so we are gaining some extremely strong competences that will further strengthen our platform within alternative investments,” says Thomas Otbo.