Norfund aims to be an active owner, and we therefore have a preference for equity. Ownership stakes enable more influence over the strategies and operations of the companies, compared with e.g. loans. Norfund also strives to work in a manner that will mobilise further capital from other investors. Equity normally carries more risk than loans, and through investing in equity Norfund acts as a catalyst by putting banks and other private players in a better position to extend loans against collateral.
However, we are also actively lending. Financial institutions in particular need access to loans to fund lending to their customers. Banks are the most important source of loans for enterprises, and local banks are best positioned to assess credit capacity. The possibility of raising loans and saving money is also important for private individuals. In consequence we are also working actively to build up a loan portfolio.