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Fund investments in EIFO

If you are a professional fund manager looking for an investor for your fund, EIFO may be an option. We invest in funds that invest in unlisted companies within a wide range of sectors.

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Partnerships with funds

The Export and Investment Fund of Denmark (EIFO) strives to improve access to capital, competences, and networks for Danish enterprises. We do this, among others, on the basis of investments in and through formation of long-term partnerships with Danish and international funds, who target unlisted small and medium-sized enterprises with growth and scaling potential. The aim is to attract and retain capital and competences for promising segments of the markets, thereby helping to establish the most efficient European market for risk-tolerant capital.

Photo: Vertical farming, Credit: Shutterstock

Our investments cover a wide range of funds who focus on various verticals, stages of development and geographic areas. We invest in both local, Danish-based venture funds as well as international venture funds. Apart from providing capital to Danish companies, the common denominator between the funds is that they complement and supplement the Danish innovation economy with knowledge, competences, and network for the benefit of Danish start-ups.

We invest in one of two ways:

  1. Direct investments: EIFO’s department for fund investments, Investment Own Fund of Funds, invests assets from EIFO’S balance in primarily national and international venture funds who can provide Danish enterprises with capital, competences, and knowledge.
  2. Indirect investments: We ensure investments in venture and buyout funds via the three fund-of-funds, Dansk Vækstkapital and Dansk Vækstkapital II and Dansk Vækstkapital III, all established as a collaboration between the Danish state, the pension funds, and a number of other investors.

All investments are commercial, and the funds, we invest in, are managed by professional fund managers with specialised knowledge of the type of companies that they invest in.  

We always invest in syndication with other investors, hereby ensuring that private assets are also injected into the funds.

The five criteria

EIFO invests in Danish and international funds with the aim to ensure improved access to capital, competences, and networks for Danish SMEs.

We focus on the following criteria when making investments:

Team

The team must have the relevant experience as well as the required strategic and operational competences. The team must demonstrate good collaboration and have access to a strong network in support of the fund's investment strategy.

Investment strategy

The investment strategy must be clearly defined and describe in detail how value is created in the enterprises all the way to exit. The investments must comply with basic social and ethical principles.

Track record

The team ranks among the best investors in their field with demonstrated returns on both previous and current investments. The team's proven results include their choice of investments, investment structuring, development of portfolio companies and exit.

Procedures

Structured workflow and processes have been established which ensure consistent and efficient execution of the fund's investment strategy. The team works systematically to create value and handle risk, and there is a clear framework for assigning responsibility. The procedures include documentation and communication (including reporting).

Structure

The fund has a clear legal and tax structure which include transparent terms and conditions adhering to market conformity so that the risk/return aspect is balanced for all relevant parties.