Norfund AS

Overview

Established in 1997 by the Norwegian Parliament, Norfund is a development finance institution wholly owned by the Norwegian Ministry of Foreign Affairs. Its mission is to create jobs and improve lives by investing in businesses that drive sustainable development in developing countries. Norfund focuses on sectors such as renewable energy, financial inclusion, scalable enterprises, and green infrastructure, primarily in Sub-Saharan Africa, with additional investments in selected countries in Asia and Latin America. The fund operates on commercial terms, providing equity capital and other risk capital to businesses that would otherwise lack funding, aiming to mobilize private and commercial capital for development purposes. Norfund's investment strategy involves a minority ownership approach, typically holding no more than a 35% stake in its portfolio companies. The fund offers various financial instruments, including equity investments, loans, and mezzanine financing, with ticket sizes ranging from USD 5 million to USD 50 million. Its investment horizon is generally five to ten years, reflecting a patient, long-term commitment to fostering sustainable growth in its target regions. The fund's governance structure ensures alignment with its development mandate, with oversight from the Norwegian Parliament and the Ministry of International Development. Over the years, Norfund has made significant investments in renewable energy projects, financial inclusion initiatives, and scalable enterprises, contributing to job creation and economic development in its focus areas. The fund's approach emphasizes active ownership, often taking board positions to provide expertise and support to its investees. Norfund's commitment to sustainable development is further demonstrated through its management of the Climate Investment Fund, established in 2022 to invest in renewable energy projects in developing countries, aiming to reduce greenhouse gas emissions and accelerate the global energy transition.

Investment Focus

• Sustainable business practices
• Positive social and environmental impact
• Alignment with Norfund's investment sectors and geographical focus
• Potential for financial returns
• Active ownership and governance participation

Portfolio Companies