Institutional Investment Partners Denmark
Alternative investment platform for institutional investors
Institutional Investment Partners Denmark (“IIP”) is an alternative investment platform for institutional investors investing in private funds.
Originally established as PKA AIP in 2012, IIP was formally set up as a regulated manager of alternative investment funds in 2019 and is dedicated to advising institutional investors on private fund investments and co-investments within private equity and infrastructure funds globally. IIP manages USD 12 billion on behalf of its institutional investors and the target for the coming years is to commit approximately USD 1 billion per year.
IIP currently invests on behalf of the four Danish pensions funds administered by PKA A/S, that collectively have more than USD 45 billion assets under management and approximately 320,000 members including nurses, medical secretaries, social pedagogues, and pharmacologists.
The Manager is licensed as a manager of alternative investment funds by the Danish Financial Supervisory Authority (FT-no. 23187) under the Danish Act on Alternative Investment Fund Managers.
|The State Registered Nurses and Medical Secretaries Pension Fund||The Healthcare Professionals Pension Fund||The Social Workers, Social Pedagogues and Office Staff Pension Fund||The Pharmaconomists Pension fund|
How we invest
IIP invests out of three-year funds on behalf of its institutional clients. Currently, IIP invests out of two active funds: PKA Private Funds IV and PKA Venture I.
PKA Private Funds IV is a DKK 22 billion (USD ~3.5 billion) buyout fund to be deployed from 2020-2023. The fund includes allocations to both primary fund commitments and co-investments. The fund will be invested with commitment sizes typically in the range of USD 50-150 million for fund commitments and USD 15-60 million for co-investments. The majority of the portfolio will be comprised of private equity commitments, with a minority reserved for infrastructure commitments.
PKA Venture I is a DKK 2 billion (USD ~300 million) venture fund to be deployed from 2020-2022. The fund includes allocations to both venture funds as well as growth funds and venture fund of funds. The fund will be invested with commitment sizes typically in the range of USD 5-25 million.
What we look for
On the buyout side, we look for control-focused managers investing into the middle market with operational and strategic value creation models. We only co-invest with managers that are already in our portfolio.
On the venture side, we primarily look for US and European early stage managers focused on investing in technology and life science.
IIP has a large team that is dedicated to carrying out and monitoring private fund commitments.
The team consists of 29 professionals split across investments, finance and support. The investment team has complementary experience from institutional investing, private equity, corporate finance as well as consulting
Senior Investment Manager
Frederik Ploug Søgaard
Isabella Uhre Brink
Thomas Duch Nielsen
Christian Hjort Pedersen
Emil Tilgaard Jensen
Mathias Hjorth Hetting
Pernille B. Callesen
Jakob F. Osmundsen
FINANCE & VALUATION
Partner & CFO
Abdul Rahman Ashraf
Head of Finance & Valuation
Frederik Gemmer Kristiansen
Head of Accounting
COMPLIANCE & RISK, AND LEGAL
Helle Byrgiel Lyngdal
Compliance & Risk Manager
Linda á Dunga Brøndum
IR & BUSINESS DEVELOPMENT, AND SUPPORT
Senior Associate, IR & Business Development
Executive Assistant/Office Manager
IIP wants to make a difference. Not only to our investors but also to our planet and society. Therefore, we have a strong focus on our guidelines for responsible investing within our strategy. Our pursuit of responsible investments also stems from our belief that companies that act responsibly in the long run are expected to achieve better and more stable returns to their shareholders.
Our approach to working with responsible investment is based on the UN principles for responsible investment. Given that we only perform investments through funds, we obtain compliance with our guidelines through collaborative partnerships with fund managers and we strive to integrate our guidelines in the best possible way in each individual investment we commit to.
EU’s Sustainable Finance Disclosure Regulation (SFDR) is a significant set of rules related to sustainable financing with the purpose of improving the information and transparency on sustainable issues in the financial sector and preventing misrepresentation of ESG activities or initiatives (greenwashing)
IIP wants to make a difference. Not only to our investors but also to our planet and society. Therefore, we have implemented an ESG investment policy with guidelines for responsible investments.
Our precondition for responsible investments is that companies that act responsibly in the long run are expected to achieve better and more stable returns to their shareholders.
The ESG principles outlined in the ESG policy apply to IIP and we will endeavor that the principles are observed by the investments of any funds and any other type of investment vehicle managed by IIP. IIP integrates our ESG policy in the best possible way in the individual investments. If, via an investment, IIP becomes a co-owner of a company that infringes the ESG investment policy and it is decided to divest the entire investment, the general partner of the investment shall work to ensure that this is done sensibly, taking into account the other investors in the fund.
IIP’s approach to working with responsible investments is based on the UN principles for responsible investment and IIP expects the general partners of the investments to be active owners adhering to the following six principles.
Article 3 of the SFDR regulation – Policies
As a FAIF we shall publish on our website information about the policies on integration of sustainability risks in our investment decision process.
The integration of sustainability risks is addressed in IIP’s ESG Policy, ESG process description and Portfolio Management Policy including our Due Diligence framework. Through the Due Diligence framework, we identify principal adverse impacts on sustainability factors such as environmental and social issues and we assess sustainability risks on financial returns.
Article 4 of the SFDR regulation – Principal adverse impact
Financial Market Participants with less than 500 employees can choose to consider principal adverse impact of its investment decisions on sustainability factors. Though not legally required, IIP has decided to consider principal adverse investment decisions on sustainability factors. Please refer to our “Principal adverse impact Statement” for a description on how we consider such principal adverse impact.
Article 5 of the SFDR regulation – Remuneration Policy
Financial Market Participants including FAIFs shall in their remuneration policies include information on how these policies are in compliance with the integration of sustainability risks. This information is to be published on their websites.
IIP has both a remuneration policy and a diversity policy. These policies aim at ensuring compliance with relevant regulations and standards. The principles on hiring, evaluating and promoting employees include an overall assessment of employee, actions and effort. ESG issues and risks are part of the overall assessment process.
Art 8 and 9 of the SFDR regulation – sustainable investment products
IIP has a clear investment strategy and is dedicated to advising institutional investors on private fund investments and co-investments within private equity, venture and infrastructure funds globally. IIP wants to make a difference. Not only to our investors but also to our planet and society. Therefore, we have a strong focus on our guidelines for responsible investing within our strategy. Our pursuit of responsible investments also stems from our belief that companies that act responsibly in the long run are expected to achieve better and more stable returns to their shareholders.
However, since IIP’s investment products are not marketed as having environmental or social characteristics or as being fully or partial sustainable investment products, the requirements in Art. 8 and Art 9 do not apply to IIP.
Our guidelines can be divided into two categories:
1. Broad adherence to conventions, including:
- The Universal Declaration of Human Rights
- The International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work
- The Rio Declaration on Environment and Development
- The United Nations Convention against Corruption
2. Specific bans on investments in:
- Unconventional weapons
- Coal companies