Throughout a number of years, PensionDanmark has been focusing on increasing the share of investments in private markets, including private equity and infrastructure.
These investments are characterized by a non-cyclical revenue uncorrelated to economic cycles with expected investment returns substantially higher than the bond interest rate. The investments are undertaken by PensionDanmark’s internal team for Private Markets.
Our aim is to make private markets to constitute a significant part of the portfolio. Given the constant growth of PensionDanmark's collected assets, we have an on-going need to deploy capital across private markets as well.
PensionDanmark's team for Private Markets is divided into three teams: Direct Equity, Private Equity and Private Debt.
Copenhagen Infrastructure Partners
In 2012, PensionDanmark initiated the establishment of a new investment fund, Copenhagen Infrastructure I. This fund as well as the subsequent funds are managed by Copenhagen Infrastructure Partners (CIP). CIP has more than EUR 15bn under management. The company focuses on long-term investments in infrastructure assets with a high degree of stability in cash flows and low correlation to the ordinary business cycles.
Their primary focus is energy related infrastructure assets within a broad range of technologies, which makes them a suitable partner to PensionDanmark. CIP’s geographical focal point is established markets with limited regulatory and political risk primarily in Northwestern Europe, North America and selected countries in East Asia.
PensionDanmark has made commitments to all of CIP´s funds and is the sole investor of their two initial funds, Copenhagen Infrastructure I and Copenhagen Infrastructure Artemis.
PensionDanmark has committed in CIP managed funds amounting to EUR 3.6bn.