Norfund's equity investments are from about NOK 20 million (4 million USD) and above. The fund takes maximum 35 % ownership share. That is, the projects normally have a total equity of NOK 100 million and above. Norfund takes a position as an active owner, and follows the development of the company closely.
Norfund normally only offers loans to companies in which the fund already has an equity position. But the fund can offer ordinary loans to financial institutions like banks, or in some cases to other companies (e.g. small, Norwegian enterprises - see below). The loans are in the same size range as equity positions.
SME-funds (private equity funds)
In addition to investing directly in companies with equity and or loans, Norfund invests equity indirectly through SME-funds. Norfund invests in funds that have an investment strategy aligned with the Norfund strategy, that is funds that work to develop local small and medium sized enterprises in the Norfund geographies. The SME-fund positions are in the same size range as the direct equity investments.
Small enterprise loans
Norfund offers a loan scheme to small Norwegian companies that wish to establish business in the Norfund investment regions. This instrument is adapted to provide simplified case processing for the small scale loans, but the requirements for business plans and commercial basis are still valid.