Fact sheet: How does IFU work?
With close to 1,200 investments in Asia, Africa, Latin America and parts of Europe, IFU is Denmark's most experienced investor in developing countries and emerging markets. Read more about how IFU works and what we can offer Danish companies and investors.
IFU provides advisory services and risk capital to Danish businesses wishing to do business in developing countries and emerging markets.
We have a long-term investment horizon, investing directly in the company set up in the host country.
Equity and loans
We participate in establishing new companies, setting up joint ventures between Danish enterprises and local business partners, acquiring existing companies and in projects with a Danish interest.
Our investments are made on a commercial basis, and we offer financing in the form of:
- mezzanine financing (equity-like loans)
The figure illustrates how a typical investment with IFU is organised. There are several other models to go by, and we always tailor our solution to each individual investment.
Professional advisory services
IFU offers advisory services on such aspects as business opportunities, commercial legislation and culture in the host country, business plan evaluation, localisation, recruitment and local partnerships.
We can also assist you in gaining easier access to local authorities and relevant lawyers, auditors and trade organisations.
IFU is on board all the way
IFU offers advice during the preparatory stages of the investment, in connection with establishing operations in a developing country, and until the established company can operate on its own. We are often represented on the board of a project company established in the host country, and are thus on hand to share our knowledge and experience.
IFU also offers knowledge and advice on how to handle and comply with the sustainability requirements set out by IFU as well as those in force in the host countries.
Advisory services are provided by IFU's investment advisers based in Copenhagen or at IFU's regional offices in China, India, Singapore, South Africa, Kenya, Ghana, Egypt and Colombia.
Investments with companies large and small
IFU invests with Danish enterprises, large and small. IFU financing ranges from DKK 500,000 all the way up to DKK 100 million. Generally, IFU has a mandate to take up to a 30 per cent stake in an investment project, but up to 49 per cent in small projects.
Additional financing through IFU
Through its close relations with international and local financial institutions, IFU may assist in procuring additional funds for a project.
IFU is fund manager for IFU Investment Partners, a fund committing equity to project companies established by IFU and Danish enterprises. This channel gives Danish companies access to additional risk capital over and above IFU's general cap of 30% of an overall investment.
Under "From establishment to sale" we provide an overview of the typical course of an investment with IFU.
IFU can form partnerships with all Danish enterprises
All Danish enterprises can benefit from IFU's services. At least four prerequisites must be met, however:
- there must be a Danish partner or a Danish interest in the project int he host country;
- the business operation must be deemed to be a commercially viable;
- projects must have a development impact in the host country;
- the host country must be on the list of developing countries eligible for IFU investment. Click here to see the list.