Danske, Nordea see rocketing growth in private equity

Danske Bank and Nordea says investors' interest in unlisted equities is surging.

Denmark's TDC was held as a private equity investment for a number of years, before getting reintroduced as a listed company.

The hunt for strong returns in the present low interest rate environment has in recent years channelled increasing amounts of money into unlisted equities – and these millions are come from institutional as well as private investors.

This is what both Danske Bank Asset Management and Nordea Asset Management report – two of the largest Nordic players on the asset management market.

Head of Nordea Asset Management Private Equity, Christian Estrup, who defines PE as investments in unlisted companies, says to AMWatch:

"Over the course of the last two-three years, we have seen vigorous growth in the private equity market. It is mostly driven by the many investors, both institutional and wealthy private investors, who have placed more money in private equity as a result of the current "low yield environment", in which it has become increasingly difficult to find attractive returns in traditional asset classes such as bonds and equities."

This opinion is shared by the CIO of Equities and Alternatives at Danica Pension and Danske Bank Wealth Management, Jesper Langmack.

"Overall, unutilized pledges are what has caused capital funds to have more assets at their disposal for investments compared to before the financial crisis. Capital funds have a lot of firepower to invest at the moment," he says.

Read about Nordea's take on private equity investments in this issue of the AMWatch Newsletter, and about Danske Bank in next week's issue.

Nordea: "More capital muscle" for private equity managers

English Edit: Marie Honoré

Frontpage right now

Swedish pension fund proposes raising pensions awareness in parliament

Sweden's AP3 has come up with an idea that it says would let more Swedes know about their pension system. The government’s annual evaluation of the state pension buffer funds could be elevated into a public hearing about the whole system in the country’s parliament, the Riksdag, it says.

Lawyers call for Danish real estate bond comeback

The much-criticized financing concept that has been been left unexploited in Denmark since the financial crisis, has benefits that investors in Norway and Sweden can easily spot, says law firm Bech Bruun.

ATP venture fund VIA ranks second in Europe for equity returns

Sky-high returns on its investment in Nets have pushed the Danish-based equity fund VIA Equity to second place in a new Preqin ranking. Both in Europe and globally, the ATP and PFA-backed fund has a strong position in terms of returns thanks to a conservative investment strategy, the CEO says.

Latest Fund Management

Related articles

amwatch trialbanner.jpg

Latest news


See all

See all

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch