Norfund offers financing through several financial instruments, but has predominantly an equity-strategy. When taking ownership, Norfund seeks to actively contribute to the development of the investee company beyond providing required capital.
Norfund seeks to be an active owner in several different ways. Project managers in Norfund are often recruited because they possess a double competence. Financial acumen paired with industrial and operational experience, enables Norfund staff to serve as discussion partners and support to management in investee companies.
With invested equity, Norfund typically takes board positions. Board members are recruited either among staff or externally; the overriding principle for Norfund is that board members must be truly value-adding to the board work and the process of growing the company.
In addition to ensuring the company develops to the agreed commercial strategy, Norfund is particularly focusing on risk management, establishment of good governance in the company and that operations are carried out in accordance with agreed social and environmental standards (for more on this, see ESG standards). Norfund also requires that the investee companies report on defined development indicators (for more on this, see development indicators)