IFU provides risk capital in the form of equity, loans and guarantees
IFU provides risk capital for companies wishing to do business in developing countries and emerging markets in Asia, Africa, Latin America and parts of Europe.
Our investments are made on a commercial basis, and we offer funding in the form of:
- mezzanine financing (equity-like loans)
IFU is an active investor. We have a long-term investment horizon and invest directly in the company that is established in the investment country. Consequently, we share the financial risk with our partner.
IFU may participate both in the creation of new businesses, joint ventures between a Danish and local partner, through the acquisition of existing companies and projects with Danish interest.
Big and small investments
IFU will always be a minority investor and typically participate with about 30 percent of the total investment. Consequently, additional funding of the projects is necessary. This may be through Danish or local funding or for example through regional development banks.
IFU can finance a project with up to DKK 100 million. Through IFU Investment Partners (IIP), IFU can provide additional share capital funding for major projects.
An example of a typical IFU investment
*A Danish interest is defined as:
- A Danish investor
- A Danish company supplying goods, technology, know-how, management or services
- Indirect financial participation in the project company
- A Danish company sourcing products from the project company
- A Danish participation on the board or in the management team of the project company
- Use of state-of-the-art Danish technology in the project
- Direct or indirect job creation in Denmark