Private funds

Mandate · Portfolio


New commitments are currently made out of PKA AIP 3 Private Funds – a DKK 19 billion (USD ~3 billion) program to be deployed in the three-year period from 2018 to 2020. The program includes fund commitments and co-investments with managers, already in the PKA AIP programs.

It is the objective to generate a portfolio of commitments, which will make controllable and repeatable returns superior to those of the listed markets. To do this, we look for:

  • Mid-market buyout managers – typically with funds between USD 0.5-3.0 billion
  • Managers, who have a clearly articulated and documented strategic and operational approach to value creation
  • Independent managers with a single series of funds

The program will predominately be composed of private equity funds, but it will also include infrastructure funds. The pursued infrastructure funds are those that target a return similar to that of private equity buyout funds. Fund commitments are typically given in the range from USD 50-150 million, while co-investments are between USD 15-60 million.

PKA AIP 3 is a global program with the mandate to invest in all parts of the world. However, our strategic dedication to managers doing control investments has the geographical implication that most commitments will be to North American and European funds. We do expect, though, that PKA AIP 3 Private Funds, once fully invested, will include both global funds and one or more funds dedicated to regions outside of North America and Europe.