Promoting sustainable development and targeting attractive returns
The Danish Sustainable Development Goals Investment Fund II (“SDG Fund II” or “Fund”) is launched in collaboration with four major Danish pension funds. Through commercial private sector investments in emerging markets, the Fund will contribute to the realisation of the UN Sustainable Development Goals – with an attractive target return of 12-15% net in DKK. SDG Fund II is a sustainability-focused fund that meets the criteria in SFDR article 9.
Risk mitigation
SDG Fund II is investing in markets where country risk is typically higher than in the major Western countries. Thus, several risk mitigation factors have been established to secure private capital.
- Diversified fund: Limited single-risk exposure through diversification across four sectors and 13 focus countries. Sectors and countries are selected to ensure high impact and limit country risk.
- Infrastructure focus: ~50% of fund is invested in infrastructure-like investments with limited development risk and high cashflow certainty.
- EU guarantee: Loss cover of close to 20% of private capital on individual investments*.
- Preferred return: Private investors get preferred return up to 6% IRR.
*Does not cover investments in Latin America and North Africa.
Four major pension funds as anchor investors
SDG Fund II was launched on 20 November 2024, with four anchor investors – PFA, PKA, P+ and PenSam. All anchor investors also invested in the first SDG Fund.
Interested in hearing more about private investor opportunities?
We encourage Danish companies, private funds, pension funds and anyone interested in hearing more about our investment opportunities or the fund in general to contact our Head of Investor Relations, Kristoffer Nilaus Tarp. You can find his contact information below.
Head of Investor Relations
Kristoffer Nilaus Tarp
+45 33 44 12 64
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SDG Fund I demonstrates strong impact
The Danish SDG Investment Fund (SDG Fund I), launched in 2018, is fully invested with DKK 3.8bn. Explore the impact, results and read more about the fund below.
