Denmark Fund Restructures, Merging Private Debt and Alts Units

Decision expected to ‘harvest synergies’ between sectors, enable more investment flexibility, its CIO says.

Denmark’s pension system is combining its private debt and alternatives arms, as the head of the debt division also assumes leadership of the alts function.

The merger between the two departments is the result of the departure of the alts chief at Denmark’s $35.7 billion pension fund.

Kim Nielsen, PensionDanmark’s head of private debt, will replace Claus Lyngdal as the new head of alternatives.

“With Claus Lyngdal’s decision to move on, we have decided to merge our two teams— Private Debt and Alternative Investments—into one,” Claus Stampe, the fund’s chief investment officer, told CIO. 

Lyngdal is leaving the retirement plan for a similar job at Danske Bank Asset Management, the organization confirmed.

Nielsen’s new department includes infrastructure and direct lending. The news coincides with the fund’s recent decision to allocate more to infrastructure and real estate investments. It expects to reap more “moderate” future returns.

Stampe said PensionDanmark expects to “harvest synergies” in areas such as asset management and compliance with the new alternatives unit. “On top of that, it will enable us to have a more flexible approach to where we invest in the capital structure, when we enter into new projects,” he said.

The fund allocated 26.4% to alternatives under the old unit as of December 31. The rest was 48.7% to equities and credit, and 24.7% to investment-grade bonds.


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