Positive returns over time indicate that we are fulfilling our mandate of creating financially viable companies.
Since 1997, Norfund has invested a total of NOK 18.7 billion directly in approximately 200 companies. The Internal Rate of Return (IRR) for Norfund’s portfolio, measured in investment currencies since inception, is calculated to be 5.4 percent.
This indicates that we are succeeding in developing profitable companies. Profitability is a central precondition for a company’s survival over time, and necessary for the creation of lasting development effects.
Status of exited companies
In 2015, we contacted former direct investments to learn about their development after Norfund's engagement had ended. We found that 85% of the companies that were operational when Norfund exited are still operational today. The companies are growing, increasing their profits and hiring more people.
Our survey data shows that the loans portfolios in all the financial institutions have continued to grow after Norfund’s exit. Profitability continued to increase in almost 70 percent of the companies; 65 percent of the companies have continued to expand their workforce since Norfund’s exit. Our findings are illustrated in the figure below.