PKA AIP is the dedicated alternative investment arm of PKA. With DKK 47 billion (USD ~7.2 billion) under management, PKA AIP is responsible for investing and monitoring PKA’s alternative investments in private funds, co-investments and direct infrastructure.
PKA AIP invests on the basis of three-year mandates. We invested PKA AIP 1 from 2012 to 2014 and are currently investing PKA AIP 2, which is to be deployed from 2015 to 2017. The PKA AIP 2 mandate targets the deployment of DKK 20 billion (USD 3.2 billion), of which DKK 13 billion (USD 2.0 billion) is reserved for commitments to private funds and co-investments in PKA AIP 2 Private Funds and DKK 7.5 billion (USD 1.2 billion) for direct investments in infrastructure assets in PKA AIP 2 Direct. The mandate is a strong testimony to PKA’s continued, long-term commitment to alternative assets and it is among Europe’s largest programs of its kind.
PKA AIP is owned by PKA and currently acts exclusively as advisor to PKA’s pension funds. PKA is an administrative company that manages and develops labor market pensions on behalf of three independent pension funds with a total of around 275,000 members within the social welfare and healthcare sectors in Denmark.
The members’ pension schemes have been agreed on as part of a collective bargaining agreement between the organizations of employees and employers, thus ensuring a high degree of transparency for future payments to PKA, etc.
PKA has been an active investor in private funds and infrastructure assets since the 1990s. The total capital of PKA amounts to approximately DKK 235 billion (USD ~35 billion), which is primarily invested in bonds, shares, real assets and absolute return.