The impact fund of the Danish government has closed its latest fund at DKK 5 billion, the equivalent of around €670m.
A large chunk of the capital came from five pension funds: P+, PenSam, PKA, PFA and PBU. Jyske Bank also invested in the fund.
Impact Fund Denmark also invested public money into the the new vehicle, dubbed SDG Fund II.
Lars Bo Bertram, CEO of Impact Fund Denmark, said that the new vehicle was a "strong example" of how "public funding can be used to mobilise private capital at scale."
The fund uses a blended finance structure in which private investors take priority returns of up to 6% but forgo a share of gains above 12%.
The vehicle will invest in green businesses in developing countries. One recent investment was Spiro, which is fast becoming Africa's poster child EV business.
Founded in 2019, the Nairobi-based startup, which mainly provides battery-swapping infrastructure for electric mopeds, recently raised $215m in an investment round led by Impact Fund Denmark and Equitane, a Dubai-based investment conglomerate. It's valuation now sits very close to $1bn, according to Bloomberg.
Impact Fund Denmark is the rebranded name for IFU – the Investment Fund for Developing Countries – which was founded in 1967 as a Danish government-owned development finance institution. It rebranded in June 2025.