Denmark's IIP raises $3.2B for private equity funds, targets European growth
What's the deal? Institutional Investment Partners Denmark (IIP)Dealroom has a profile for this one. Try Dealroom → has raised nearly 21 billion kroner (roughly $3.2 billion) this year across three private equity funds that invest in unlisted companies. Danish pension fund PKADealroom has a profile for this one. Try Dealroom →, which founded IIP and co-owns it with Lars Larsen GroupDealroom has a profile for this one. Try Dealroom →, is committing 6.4 billion kroner of that to European companies.
Where's the money going? One fund will invest exclusively in Europe, while the other two also allocate significant capital to European deals. PKA has earmarked 1.5 billion kroner specifically for European venture companies — smaller, younger firms with growth potential that can use the capital for product development, hiring, and international expansion.
Why now? Europe trails the US sharply on venture capital access. Citing Mario Draghi's report on European competitiveness, PKA notes that only 5% of the world's venture capital is raised in the EU, against 52% in the US — a gap the report blames for European startups struggling to scale globally.
What's the endgame? PKA wants returns for its members and a stronger Europe. "We are good at getting ideas and creating startups in Europe, but we have a harder time getting them to grow into large global companies," said PKA chief executive officer Jon Johnsen.
He added that the most promising young European companies too often end up in the US because capital and investment environments are better there.
The strategy: The three funds build on an approach that has delivered high returns for PKA's members over the past eight years, now with a bigger European weighting. IIP managing partner Maria Hjorth argues the timing favours buyers.
"European companies can today be purchased at lower prices than American companies," she said, pointing to weaker capital markets and less competition for talented firms.
The signal: A major Danish pension investor pouring billions into unlisted European companies reflects a broader push to close the continent's funding gap and keep its most promising startups from migrating across the Atlantic.
Read more: exelerating.com
Image credit: News Oresund
