Norfund creates the greatest development effects by ensuring that its capital is constantly deployed where it contributes most. We strive to be a predictable, long-term investor that does not retain ownership for longer than necessary.
When an investment is made, its duration and the exit strategy are planned at the same time. Typically, Norfund exits equity investments after 5-10 years, debt holdings after 5-7 years and fund investments after 10-12 years. A few investments might be exited earlier or later than planned due to unexpected circumstances.
Capital and profit generated by investments are reinvested in new businesses in which there is a greater need for our risk capital.
SN Power
- Region: Global
- Business sector: Energy
- First investment year: 2013
- Investment: 5.4 billion NOK
- IRR (investment currency): 12.4%
After building SN Power into a leading hydropower company in developing countries, Norfund sold its shares to Norwegian energy developer Scatec for 1.17 billion USD. Each year, SN Power plants produce power equivalent to the electricity consumption of 7 million people and help avoid 3 million tonnes of carbon emissions. Read more about the sale in the 2020 annual report here.
Lake Turkana Wind Power
- Country: Kenya
- Business sector: energy
- First investment year: 2011
- Investment: 112.2 million NOK
Lake Turkana Wind Power is the largest windfarm of its kind on the African continent. Norfund has been a patient and long-term investor since since our first involvement through a Project Development Facility in 2011, and later with an equity investment in 2014 through KLP Norfund Investments, a company financed by Norfund and KLP. The windfarm was connected to the national grid in 2018, and now constitutes approximately 17% of Kenya’s installed capacity. In July 2021, KLP Norfund Investments sold all its shares to the Anergi Group. Read more here.