​PKA sells quarter of private equity arm to Danish company pledging €1bn

Danish pensions manager PKA is selling a large ownership stake in its private equity arm IIP Denmark to a privately-owned Danish firm, saying the partnership could lead to new investors participating in future IIP funds.

PKA, which manages around DKK500bn (€67bn) for four Danish labour-market pension funds, announced on Friday that the Lars Larsen Group was acquiring 25% of the private equity management firm it originally set up in 2012 under the name PKA AIP.

PKA said: “Simultaneously, Lars Larsen Group will invest a minimum of DKK7.5bn in IIP’s funds through to 2032. PKA continues as primary owner of and the largest investor in IIP.”

Michael Nellemann Pedersen, PKA’s chief investment officer, said PKA had spent some time searching for the right partner for IIP Denmark, which manages DKK100bn of invetments for its four pension funds, as well as capital for the Greenlandic pension fund SISA and several other external investors.

“For many years, our members have enjoyed the benefits of IIP’s expertise and attractive returns, but we have always believed in the potential to be even greater with an expanded group of owners,” he said.

The CIO said the Lars Larsen Group – a firm owned by the descendants of the founder of the JYSK retail chain – was “a professional and esteemed partner, who is financially strong and shares our ambitions for IIP”.

Maria Hjorth, managing partner of IIP Denmark, said she expected the partnership to support the expansion of IIP’s investor base.

“It enables us to continue our growth while keeping costs down for our investors,” she said.

“Many investors have a strong interest in private equity fund investments, but it remains a complex and cost-intensive asset class to access independently,” said Hjorth.

PKA said the transaction was subject to regulatory approval.

IPE has asked PKA to reveal the value of the deal.

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