A.P. Moller Holding, along with Danish pension firms PensionDanmark, PKA, and Lægernes Pension, have collaborated to launch Africa Infrastructure Fund I, which will focus on infrastructure investments in Africa.
The four companies have committed $550 million to the fund, which will have an emphasis on transportation and energy investments on the continent. The companies said the fund will facilitate investments to support sustainable economic growth and prosperity in Africa, while at the same time aiming to deliver attractive returns to its investors.
The fund will be open for Danish as well as international investors for the next 12 months. It has a targeted lifetime of 10 years, and has an initial target of 10 to 15 investments in total. Following the initial commitments, the fund will be open to additional institutional investors in the next 12 months. The fund’s goal is to have a total capital commitment of $1 billion.
“We see this as a unique opportunity to invest in a region with high economic growth and attractive investment opportunities alongside a partner–A. P. Moller Capital–that has extensive investment experience combined with a strong network and a promising pipeline of potential investment projects,” said Torben Möger Pedersen, CEO of PensionDanmark.
“The fund is a good example of how we as investors can combine attractive investments for our members and at the same time contribute to the fulfillment of the UN sustainable development goals by mobilizing private capital on a large scale.”
PensionDanmark is already invested in Africa in farmland, sustainable farming projects, and a number of renewable energy infrastructure projects such as the Lake Turkana Wind project in Kenya.
The fund will be managed by A.P. Moller Capital, a subsidiary of A.P. Moller Holding. A.P. Moller Capital consists of a team led by Kim Fejfer, Lars Reno Jakobsen, Jens Thomassen, and Joe Nicklaus Nielsen.
“Together we will build and operate infrastructure in Africa that supports sustainable development and improves living standards across the continent,” said Fejfer, managing partner and CEO of A.P. Moller Capital. “We want to combine the best from industry in terms of project management and operating competences with the best of private equity in terms of focus and flexibility.”