Swedish pensions and insurance group Folksam has announced it is investing a further SEK2.93bn (€276m) in private credit, participating in P Capital Partners’ fifth credit fund, PCP V – following a similar-sized investment in another of the manager’s funds in 2021.
Stockholm-based Folksam said the PCP V fund offered financing to companies in northern Europe in need of capital to, for example, further expand their operations.
Marcus Blomberg, chief investmetn officer of Folksam Asset Management, said: “The goal of our new investment in PCP V is to give our customers a good return on their pension money, and the fact that we are also contributing to companies being able to grow and take the next step is, of course, also positive.”
He said the Folksam group had invested in P Capital’s credit funds on several occasions, with good results.
The pensions firm said it had invested in all four predecessors to the fund PCP V, and last year also invested around SEK3bn in PCP Transition Partner Fund, a fund aiming to finance and support the transition to sustainable operations for medium-sized European businesses.
The new investment is spread across entities within the Folksam group, with the life and pensions arm Folksam Liv being allocated just over SEK1bn, general insurer Folksam Sak taking about SEK230m and municipal pension fund KPA Occupational Pension Insurance taking the lion’s share of about SEK1.57m, according to the announcement.
On top of this, Folksam said the Consumer Cooperative pension foundation (Konsumentkooperationens Pensionsstiftelse) was also investing approximately SEK130m in the fund, the group said.
Earlier this month, Folksam revealed it had invested SEK850m in the latest capital-raising round by unlisted Swedish lithium-ion battery manufacturer Northolt.