Equity and loans

Our objectives
  • Sustainable impact: Invest in businesses in developing countries that promote green and inclusive economies 
  • Commercial viability: Invest in commercially viable projects to improve bankability 
  • Mobilise private capital: Mobilise private capital and know-how to deliver impact at scale  
  • Additionality: Participation must mobilise co-investors and impact that would not otherwise be possible 

Mandate to invest

Long-term, active investor

Impact Fund Denmark is an active investor. We have a long-term investment horizon and invest directly in the company that is established in the investment country. Consequently, we share the financial risk with our partner.

How we invest

Impact Fund Denmark may participate both in the creation of new businesses, joint ventures and through the acquisition of existing companies. 

Generally, we will be a minority investor and take a 10-30 % stake of the total investment. In small projects, we can take up to 49 %. Consequently, additional funding of the projects is necessary. This may be through partner funding and for example through regional development banks. 

Impact Fund Denmark can finance a project with up to DKK 350 million. 

Our investments are made on a commercial basis, and we offer a variety of funding.

Financial instruments

Equity

We provide capital in exchange for ownership in a company. Here, we share profits and risks.

Loans

Businesses borrow capital with a set repayment schedule and interest. Unlike equity, we do not gain ownership but expect repayment regardless of business performance. 

Mezzanine financing

A hybrid between equity and debt, offering flexible repayment terms. 

Investment focus in numbers

50%

climate-related

50%

invested in Africa

30%

invested in poor and fragile countries

Case

Sturdee Energy

Sturdee Energy supports economic growth and socio-economic development through sustainable energy solutions in South Africa, reducing CO2 emissions by nearly 500,000 tonnes annually.

SDGS

Clean Energy Climate Action Partnership for the goals
Read more

Case

Bank Lviv

Bank Lviv provides financing to small and medium-sized companies in Western Ukraine, serving around 45,000 customers.

SDGS

Economic Growth Industry, Innovation and Infrastructure
Read more