Novo Holdings has teamed up with Lars Larsen Group and the three Danish pension funds, P+, MPIM and Lægernes Pension & Bank in a new investment club called the Danish Investment Club.
The five members have each pledged to invest between DKK 300 million and DKK 850 million (between USD 50 million and USD 130 million) to join the Danish Investment Club, managed by Advantage Investment Partners, an investment company.
The members of the Danish Investment Club will have access to I Squared Capital, an independent global investment manager headquartered in Miami and recognized as one of the world’s leading investors in global infrastructure. I Squared Capital is especially known for its ability to establish and develop infrastructure platforms, such as Lincoln Energy, a developer of onshore wind based in the United States, which was sold to Ørsted in 2018.
The new Danish Investment Club has committed more than DKK 3 billion (USD 500 million), all of which will be placed in the new ISQ Global Infrastructure Fund III and invested globally in assets within renewable energy, natural gas, wastewater, toll roads, fibre networks and other similar assets.
As the largest investor, Novo Holdings will represent the Danish Investment Club on the advisory board of the ISQ Infrastructure Fund III.
“We are primarily known as a life science investor, but investments outside this sector are an important part of our diversification. I Squared Capital aligns well with our strategic focus on infrastructure, which is the bedrock of development and growth. We expect to make several similar investments in the coming years,” says Morten Beck Jørgensen, Managing Partner, Financial Investments, Novo Holdings, who adds:
“We know I Squared Capital well and are looking forward to collaborating on the investments, and we are confident that ISQ can continue to deliver solid risk-adjusted returns.”
The new ISQ Global Infrastructure Fund III fund aims to raise DKK 76 billion (USD 12 billion) for infrastructure investments in the United States, Europe, Asia and Latin America.
“Joining ISQ Global Infrastructure Fund III together provides several benefits for investors. These include better financial terms, significantly greater access to co-investments and an opportunity to actively influence environmental, social and corporate governance themes,” explains Anders Dalhoff, Managing Partner, Advantage Investment Partners.
Members of the Danish Investment Club can comply with several environmental, social and corporate governance (ESG) requirements based on their ability to influence their investment in I Squared Capital and because the Fund has adopted the Global Tax Code of Conduct.
About I Squared Capital
I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, telecom, transport and social infrastructure in the Americas, Europe and Asia. The firm has offices in Hong Kong, London, Miami, New Delhi, New York and Singapore.