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Industriens Pension: More direct investments will cut major costs for private equity firms

For several years now, the Danish institutional investor has saved a lot of money by making direct investments in infrastructure and real estate alongside established funds. Now the pension company will increasingly apply the same method to private equity firms.

Jan Østergaard, head of unlisted investments at Industriens Pension. | Photo: PR/Industriens Pension

Danish industrial sector pension provider Industriens Pension, which currently has roughly DKK 23bn (EUR 3.1bn) invested in global private equity, now wants to dial up on direct co-investments as a growing alternative to directly investing in funds.

The idea here is to cut costs on investing in PE firms, which Industriens Pension Head of Unlisted Investments Jan Østergaard says are high, taking the form of management fees and return sharing through carried interest – and also based on particularly good experience in reducing expenses throughout several years by using the same investment method in specialized infrastructure and real estate funds.

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