The investment is an important step towards ensuring a more sustainable future and strengthens Pædagogernes Pension’s (Pension Fund of Early Childhood Teachers) commitment to responsible investments that both support the UN’s Sustainable Development Goals and create long-term value for its members and society.
The Danish SDG Investment Fund II was launched in November 2024, and with the investment, Pædagogernes Pension joins a collaboration with Impact Fund Denmark (formerly IFU, Investment Fund for Developing Countries) and the Danish pension companies PFA, PKA, P+ and PenSam. The total capital commitment today is DKK 3 billion. The fund focuses on private sector investments in developing countries in Africa, Asia and Latin America and aims to promote the green transition, improve social conditions while generating attractive returns.
“SDG Fund II is an investment that not only delivers solid returns, but also contributes to a more just and sustainable world. We look forward to supporting the fund’s objectives and strengthening our commitment to responsible investment. For our members, it is important that through our investments we actively work for gender equality and improved social conditions – both in Denmark and globally.”
Leverage of private capital
The Danish model behind SDG Fund II is based on a public-private partnership, where public capital acts as leverage to mobilise private risk capital. This structure reduces investment risk and ensures that the SDGs can be achieved through long-term investments.
“Private investors are often reluctant to invest in developing countries because of the high risk, but with SDG Fund II we have developed a model that creates attractive large-scale investment opportunities. We primarily invest in growth markets, have a well-thought-out distribution of risk and return, and an EU loss guarantee that makes the fund particularly attractive to private investors.”
With its participation in SDG Fund II, Pædagogernes Pension demonstrates its ambition to be a responsible investor that creates value for both its members and society.
The target for the total capital commitment to SDG Fund II is DKK 5 billion, with the remaining commitment expected to be raised by the end of 2025.
Impact Fund Denmark is fund manager of SDG Fund II. Since 1967, Impact Fund Denmark has invested in more than 1,300 companies in over 100 developing countries and is thus Denmark’s most experienced impact investor in developing countries.
About the Danish SDG Investment Fund II:
Through its investment strategy, the SDG Fund II will make a positive contribution to the SDGs. Across the investments, the SDG Fund II will contribute in particular to SDGs 5, 8, 10 and 13, covering ‘gender equality’, ‘decent jobs, ‘reducing inequality’ and ‘climate action’. In addition, sectoral investments will have an impact on other SDGs.
SVP, Communication & Marketing
Charlotte Holst Frahm
+45 41 38 12 42
