With more than two decades of investment experience in developing countries, Norfund has become an expert in sustainable project and corporate finance.
Developing economies need investments to boost productivity and growth. Estimates show that investments of more than one trillion USD are needed every year to meet the UN Sustainable Development Goals.
Norfund’s ownership normally does not exceed 35% of a company. As a minority investor, we seek to mobilise capital and attract competent and experienced investors to our projects.
Norfund’s 4.9% IRR (internal rate of return, measured in local currency) since inception shows that it is possible to combine reasonable return with high developmental effects.
In my opinion, most Western companies are underinvested in Africa and South East Asia.TELLEF THORLEIFSSON, CEO NORFUND
By allocating funds to these regions, private investors may access attractive growth opportunities and attain a risk diversification.
Our major co-investors
Norfund has a range of competent and trusted co-investors, both public and private. Below is an overview of partners of specific strategic importance to Norfund’s goal achievement.
KLPKLP is Norway`s largest pension company. Norfund invest together with KLP in renewable energy projects through the joint company KLP Norfund Investments.
ScatecScatec is a leading integrated independent solar power producer which delivers affordable and sustainable clean energy worldwide. Norfund has co-funded several projects together with Scatec.
FerdFerd is a family owned Norwegian investment company and one of the founding partners of Nordic Microfinance Initiative (NMI). NMI is one of Norfund’s four investment platforms.
Development Finance Institutions (DFIS)
DFIS are specialised development organisations that usually are majority owned by National governments. EDFI, The Association of European Development Finance Institutions, represents 15 European DFIS. Below are the companies with which we have the largest joint investments.
CDC-GroupCDC, The British DFI and Norfund have Invested in several projects together including Globeleq, a leading independent power producer operating and developing power projects in Africa.
FMOFMO, the Dutch DFI, and Norfund have invested in several projects together. FMO, Norfund and Rabobank have invested in Arise, a platform for investments in financial institutions in Africa.
Norfund’s Investment Platforms
Norfund has invested in four investment platforms. These are companies which both manage a set of assets and are vehicles for growth and capital deployment in a defined business area.
We search for new co-investors
Norfund has clear guidelines for evaluation of potential partners. The criteria include the partner’s area of expertise and knowledge, previous and existing positions and relationships, other roles in the society and reputation.