Danes collaborate on infrastructure investing

Eight Danish institutional investors have committed €1 billion to an infrastructure fund focusing on energy infrastructure in Europe and North America.

The fund, Copenhagen Infrastructure II, will be managed by Copenhagen Infrastructure Partners and Christian Skakkebæk, a partner at the firm, said: “The return on this type of assets is often regulated or based on long-term contracts, which make the return less volatile and relatively independent of general market conditions.” The fund has been set up as 20 year old buy-and-hold fund and it is expected to be invested within three years.

The collaboration between Danish funds has parallels with the UK’s Pensions Infrastructure Platform and a similar initiative by Swiss pension funds. With government bonds giving very low yields, pension funds see infrastructure assets as a stable alternative which can help them manage long-term liabilities.