Pension groups launch new Africa infrastructure fund

AP Moller Holding, PKA, PensionDanmark and Lægernes Pension have launched a new infrastructure fund with a focus on Africa. The fund has received commitments of $550m from anchor investors.

The new fund is to focus on investments in infrastructure in Africa that will support sustainable economic growth, while delivering an attractive return to investors.
Kim Fejfer, managing partner and CEO of AP Moller Capital, said: “We are very pleased with the significant support from the Danish pension funds and AP 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.”

“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 [and] promising company in our portfolio with a strong team, who hold the right capabilities and experience to manage infrastructure investments in emerging markets,” added Robert Mærsk Uggla, CEO of AP Moller Holding.

The fund has a duration of ten years and has an initial target of 10 to 15 investments in total. 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.

Peter Damgaard Jensen, CEO at PKA, said: “PKA has had 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.”

Torben Möger Pedersen, CEO of PensionDanmark, added: “The fund is a good example of how private capital can be mobilised on large scale to implement the UN’s Sustainable Development Goals.”
Chresten Dengsøe, CEO at Lægernes Pension, concluded: “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.”