n a significant move for Denmark’s financial sector, two of the country’s leading investors—Lars Larsen Group and PKA—have announced a strategic partnership aimed at strengthening their presence in the private equity market. The collaboration sees Lars Larsen Group acquiring a 25 percent stake in IIP Denmark, the asset management company established and owned by pension fund PKA, and committing to invest at least DKK 7.5 billion in IIP’s funds through 2032.
IIP Denmark, founded by PKA in 2012, was created to serve as an independent, highly specialized unit focused on sourcing and managing private equity investments. Over the past decade, IIP Denmark has built a robust portfolio, managing nearly DKK 100 billion on behalf of PKA’s members and consistently delivering strong returns compared to similar funds.
With Lars Larsen Group now joining as a co-owner, PKA remains the primary owner and largest investor in IIP. The partnership is expected to further solidify IIP’s market position and open the door for additional investors to participate in future funds managed by IIP.
Shared values and ambitions
Daniel Albæk, Executive Vice President and Chief Investment Officer at Lars Larsen Group, expressed enthusiasm for the new alliance: “We are pleased to enter into this new long-term partnership with PKA and IIP. We deeply respect PKA and IIP and are certain that our shared values will provide a strong foundation for the continued development of IIP. We are impressed by what has already been accomplished and look forward to contributing to realising the potential together with IIP’s skilled employees and PKA.”
For PKA, the decision to bring in a new partner was driven by a desire to build on IIP’s success and expand its reach. Michael Nellemann Pedersen, Chief Investment Officer at PKA, highlighted the importance of finding the right collaborator:
“We have spent some time searching for the right partner to build on IIP’s success in collaboration with PKA. For many years, our members have enjoyed the benefits of IIP’s expertise and attractive returns, but we have always believed the potential to be even greater with an expanded group of owners. In Lars Larsen Group, we gain a professional and esteemed partner, who is financially strong and shares our ambitions for IIP.”
Maria Hjorth, Managing Partner of IIP Denmark, sees the partnership as a validation of the company’s achievements and a catalyst for future growth:
“That a respected investor such as Lars Larsen Group decides to invest in IIP Denmark is a significant milestone for us, and I regard it as a validation of the work and results the employees at IIP deliver. It enables us to continue our growth while keeping costs down for our investors.”
The addition of Lars Larsen Group to IIP’s ownership structure is expected to make the asset manager even more attractive to other potential investors. Hjorth notes that many investors are interested in private equity but find it a complex and costly asset class to access independently. IIP aims to bridge that gap by offering expertise, a strong network, and a proven track record of delivering attractive returns. The transaction is subject to relevant regulatory approvals.
About the companies
IIP Denmark, originally established as PKA AIP in 2012 and rebranded in 2019, is an independent manager of private equity investments, currently overseeing nearly DKK 100 billion in assets for PKA’s members, the Greenlandic pension fund SISA, and other external investors.
PKA is one of Denmark’s largest labour market pension funds, managing DKK 500 billion in assets for more than 365,000 members from the social and healthcare sectors. The fund invests in a range of sectors, including renewable energy and projects aligned with the UN Sustainable Development Goals.
With this new partnership, both Lars Larsen Group and PKA are poised to further strengthen Denmark’s position in the global private equity landscape, while offering new opportunities for institutional investors seeking access to this dynamic asset class.
Sources:
- Mynewsdesk: https://www.mynewsdesk.com/lars-larsen-group/pressreleases/lars-larsen-group-and-pka-join-forces-to-invest-in-private-equity-3382686
