Den Sociale Kapitalfond Invest launches as the first social impact investment fund in the Nordic region.
Den Sociale Kapitalfond Invest (The Social Capital Fund Invest) is a newly announced DKK 218M ($34M) fund which will invest in SMEs with a particularly strong social profile.
Den Sociale Kapitalfond Invest, positioned as the first social impact investment fund in the Nordic region, is setting out to yield a financial return alongside making a positive, quantifiable difference to the lives of people in marginalised communities in Denmark. This will be achieved by promoting growth in SMEs which combine a strong potential for growth with a strong sense of social responsibility.
The fund looks to invest in small and medium-sized enterprises with a turnover of DKK 30 – 200 million in Denmark and South Sweden within trade, industry and services. The companies need to show high growth potential coupled with a strong social commitment to employing people from the margins of the labour market, contributing to development in under-resourced neighbourhoods or developing goods and services that can support vulnerable people.
The role of Den Sociale Kapitalfond Invest will be as a minority investor to work closely with business owners. Its goal is to strengthen the special values that characterise these enterprises and to help bring them to the next level of growth – typically towards a generation change, a commercial partnership or cooperation with a major equity fund.
The fund, based in Copenhagen, Denmark and led by Managing Partner Lars Jannick Johansen, has the backing of a number of substantial investors, including the European Investment Fund, The Danish Growth Fund, Novo Nordisk Foundation, TryghedsGruppen, the Hempel Foundation and the Færch Foundation.
According to the European Investment Fund, Den Sociale Kapitalfond Invest is leading the field for this type of financial innovation in the Nordic region.