Denmark-based pension fund ATP has set up its second DKr1bn ($m) venture capital (VC) fund.
Pension funds have traditional been indirect investors in venture capital by committing money to independent VCs to manage but a number of large fund managers, such as foundations Wellcome Trust and Novo have taken on direct investing using a corporate venturing approach.
ATP said its second VC fund would target local and Nordic-region information technology and telecommunications companies, according to news provider Global Pensions.
ATP’s first fund, Via Venture Partners Fond I, launched in 2006 to invest in early to late-stage private companies.
Bjarne Graven Larsen, chief investment officer at ATP, told Global Pensions: "For a number of years, ATP has been focusing on investments in new innovative growth companies in Denmark. The venture capital market has been a difficult one to crack, but we have developed a model which, in our opinion, will ensure a healthy return in future. Over recent years, the Danish venture capital market has matured and currently has far better competencies than ever before.
"Our first venture fund is already fully invested. We wish to maintain our investment focus on innovative growth companies, however, so we have decided to allocate another DKK1bn to a venture fund, which will hopefully ensure current and future ATP pensioners a healthy return on their pension savings."