Danske Bank is reinforcing its position as a crucial financial partner for Danish startups and growth enterprises. The bank is set to manage the billion-kroner funds Dansk Vækstkapital I, II, and III, along with future iterations of the Dansk Vækstkapital funds, taking over from the state-owned Export and Investment Fund of Denmark (EIFO).
Empowering Entrepreneurs and Investors
“Our mission as a bank is to leverage finance to unlock the potential in people and businesses. Supporting the entrepreneurship ecosystem aligns perfectly with this purpose. Over the years, we’ve empowered thousands of growth companies through funding, advisory services, and infrastructure. Managing the Dansk Vækstkapital funds will further enable us to optimize growth conditions for startups while creating attractive investment opportunities for investors,” said Danske Bank CEO, Carsten Egeriis.
A Pillar of Denmark’s Entrepreneurial Ecosystem
Since its establishment in 2011, Dansk Vækstkapital has attracted approximately DKK 9.4 billion in investments from a wide range of contributors, including the Danish state and pension funds. These funds provide essential venture capital to entrepreneurs and growth companies, driving job creation and economic growth while offering strong returns for investors.
Dansk Vækstkapital has played a vital role in financing venture, growth, and buyout funds—key components of Denmark’s startup ecosystem.
Rigorous Selection Process
EIFO, formed by merging three state-owned entities, underwent a thorough tendering process to select Danske Bank as the new asset manager for Dansk Vækstkapital. The EU Commission had previously ruled that EIFO could no longer invest in buyout funds, prompting the transition.
“Danske Bank stood out as the best fit for managing Dansk Vækstkapital. These funds are critical for raising new capital and driving socioeconomic value in Denmark, and we are optimistic about their future under Danske Bank’s stewardship,” said EIFO CEO, Peder Lundquist.
Seamless Transition Approved by Investors
Investors in the Dansk Vækstkapital funds have approved the transition, with the management shift expected to be finalized by the end of the year.
Expanding Danske Bank Asset Management’s Alternative Investments
The addition of Dansk Vækstkapital aligns seamlessly with Danske Bank Asset Management’s growing alternative investment platform.
“Alternative investments have been a strategic priority for us. Dansk Vækstkapital fits perfectly with our operational setup, expertise, and future goals,” said Thomas Otbo, CIO of Danske Bank Asset Management.
Otbo highlighted the bank’s strong distribution network as a significant advantage for raising capital for future funds, enabling further investments in high-growth companies.
Bolstering Expertise and Resources
A small team of employees will transition from EIFO to Danske Bank, bringing valuable expertise to bolster the bank’s capabilities in alternative investments.
“Dansk Vækstkapital’s track record is outstanding, and the added talent and experience will enhance our platform, ensuring continued success in this area,” Otbo added.
By managing Dansk Vækstkapital, Danske Bank is poised to accelerate the growth of Danish startups, fostering innovation and creating value for both businesses and investors.
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