IFU provides risk capital in the form of equity, loans and guarantees.
IFU provides risk capital to Danish companies looking to do business in developing countries and emerging markets.
We have a long-term investment horizon, investing directly in the project company set up in the host country.
Equity and loans
We participate in establishing new companies, setting up joint ventures between Danish companies 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 above illustrates how a typical investment with IFU is structured. There are several other models to go by, and we always tailor our solution to each individual investment.
Under "The investment process" we provide an overview of the typical course of an investment with IFU.
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
As IFU is connected with international and local financial institutions, we can assist in procuring additional financing for a project.
IFU is the fund manager of IFU Investment Partners, which may commit equity to project companies established by IFU and Danish enterprises. This channel gives companies access to additional risk capital in excess of IFU's general cap of 30 per cent of an overall investment.