Swedish municipal pension fund KPA and its parent, pensions and insurance group Folksam, are together putting €45m into Norrsken Venture Capital Fund II, which invests in early-stage companies aiming to solve climate problems and other challenges.

Folksam, which manages SEK823bn overall, including the SEK296bn KPA Pension, said the second venture capital fund from Stockholm-headquartered manager Norrsken – whose investment philosophy is based on the United Nation’s 17 Sustainable Development Goals – had been oversubscribed to the tune of €320m in the fundraising process.

The pensions group said the venture capital fund was the largest in Europe of its kind, and was investing in more than 30 startups focusing on “making a difference” in areas such as climate, energy transition, health and education.

Rebecka Elkert, head of alternative Investments at Folksam, said: “The investment in Norrsken VC ll is well in line with the Folksam group’s goal to be an active player in the drive towards net-zero and the climate transition.”

The pensions firm said: “Alternative investments, such as these, complement the Folksam group’s portfolio with its long investment horizon, which also gives customers exposure to unlisted assets.”

In connection with the investment, Folksam said it was taking a seat on the venture capital fund’s advisory committee, which would allow the pensions group to follow the investment closely in terms of returns and results.

KPA Pension is taking €27m of the group’s investment in Norrsken VC ll, with €9m going into the portfolio of Folksam’s Folksam Tjänstepension (occupational pension) division.

Folksam’s life and pensions division Folksam Liv is being allocated €7m, while the pension foundation Konsumentkooperationens pensionsstiftelse, managed by the group, is taking a €2m slice.

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