PFA latest Danish pension to commit to $1bn African fund

Some $650 million has now been raised from four Danish funds by AP Moller Capital.

Denmark’s largest commercial pension fund has joined three of its compatriots in committing $100 million to a new African infrastructure fund.

PFA’s investment brings the total raised by manager AP Moller Capital to $650 million after PKA, PensionDanmark and Laegernes Pension seeded the vehicle with $550 million last month.

The fund has a target of $1 billion and will seek returns in the “high teens” across a portfolio of between 10 and 15 investments. Deals across the energy and transport sectors are being considered – largely in Nigeria, South Africa, Ghana, Egypt, Kenya, Ivory Coast, Tanzania, Morocco, Ethiopia and Senegal.

“We have had a close and good dialogue with AP Moller Capital and the other partners regarding the establishment of the fund,” said Henrik Nohr Poulsen, investment director of equities and alternative investments at PFA. “Therefore, we are pleased to be able to join this strong partnership, focusing on the major investment needs and the huge development potential in Africa.”

PFA’s commitment was part of the “great interest from both potential investors and project partners”, according to Kim Fejfer, AP Moller Capital’s chief executive. The AP Moller Holding subsidiary was established to manage the African fund and further funds investing in infrastructure in emerging markets are also under consideration.

PFA has more than Dkr500 billion ($79.8 billion; €67.2 billion) under management, with more than Dkr15 billion allocated to infrastructure, according to Infrastructure Investor data.