Denmark-based A.P. Moller Holding, PKA, PensionDanmark and Lægernes Pension have jointly launched an Africa-focused infrastructure fund.
The fund has received commitments of $550m from anchor investors.
The new fund will focus on investments in infrastructure in Africa to support sustainable economic growth in the region while delivering an attractive return to its investors.
The fund has a duration of 10 years and has an initial target of 10 to 15 investments in total.
The fund will be managed by A.P. Moller Capital, which is an affiliate of A.P. Moller Holding, and consists of a team lead by four partners, Kim Fejfer, Lars Reno Jakobsen, Jens Thomassen and Joe Nicklaus Nielsen.
The partners all have extensive industrial and investment experience combined with a substantial network in Africa.
“We are very pleased with the significant support from the Danish pension funds and A.P. Moller Holding. Together, we will build and operate infrastructure business in Africa to support sustainable development and improvements in living standards across the continent. We will combine the best from industry in terms of project management and operational capabilities with the best from private equity in terms of agility and focus,” said Kim Fejfer, Managing Partner and CEO of A.P. Moller Capital.
PKA is one of the largest pension service providers for labour market pension funds in Denmark.
Peter Damgaard Jensen, CEO at PKA, said: “PKA has for many years invested in infrastructure both in Denmark and abroad. We have positive experiences investing in Africa and we have for a long time wanted to invest more on the continent. With this new fund we will be making infrastructure investments in Africa and get the opportunity to provide a good return to the pension savers and at the same time make a positive difference in line with the UN Sustainable Development Goals.”
PensionDanmark is a labor market pension fund and among the 50 largest pension funds in Europe.
Torben Möger Pedersen, CEO PensionDanmark, added: “We are delighted to be among the seed investors in Africa Infrastructure Fund I. We see this as a unique opportunity to invest in a region with high economic growth and attractive investment opportunities alongside a partner, A. P. 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 private capital can be mobilized on large scale to implement the UN’s Sustainable Development Goals”.
Lægernes Pension (The Medical Doctors’ Pension Fund) ensures pension for nine out of ten medical doctors in Denmark.
Chresten Dengsøe, CEO at Lægernes Pension, commented: “Lægernes Pension are delighted to invest in the development of sustainable infrastructure in Africa together with similar-minded Danish pension funds. The team has many years of experience and a proven track record in the region and we expect them to provide attractive investment opportunities going forward”.
Following first commitments, the fund will be open for additional institutional investors for the next 12 months.
The ambition is to raise $1bn in commitments.
A.P. Moller Holding is an affiliate of A.P. Moller Holding and was established to manage stand-alone funds to invest in infrastructure in emerging markets.
“A.P. Moller Holding was established to build value creating businesses that have a positive impact on society. Africa, with a working-age population likely to reach more than one billion people in the next decades, has a pressing requirement for more investments in infrastructure. In this respect, we are delighted to have established a new promising company in our portfolio with a strong team, who hold the right capabilities and experience to manage infrastructure investments in emerging markets,” said Robert Mærsk Uggla, CEO of A.P. Moller Holding.