AkademikerPension publishes on its website :
The military buildup in Europe should not only contribute to the security of the Danes, it should also contribute to future pension payments.
Therefore, AkademikerPension has joined forces with PensionDanmark and AP Pension as anchor investors in a new Danish private equity fund, ETNA, which will invest in targeted investments in small and medium-sized companies in the European defense industry.
“The security situation is worse than ever in recent times. Russia continues its brutal war against Ukraine, and Europe is constantly exposed to Russian hybrid attacks in a number of areas. At the same time, Europe is very isolated when it comes to security policy. In that context, it makes maximum sense as a responsible pension fund to establish such a fund, as we both demonstrate social responsibility and at the same time have the opportunity to deliver a good return to our members,” says CEO of AkademikerPension, Jens Munch Holst.
Investing in Europe’s security
Specifically, ETNA will invest in small and medium-sized European companies that strengthen Europe’s defense capabilities across military systems, technologies, cybersecurity and critical infrastructure protection.
The three pension companies are providing the capital that makes the fund possible. ETNA is raising 220 million euros, equivalent to just over 1.6 billion kroner, PensionDanmark is investing 100 million euros, while AP Pension and AkademikerPension are investing 70 and 50 million euros respectively.
Defense investments are a focus area in European politics. In the spring, the European Commission presented its ReArm Europe Plan, which aims for member states to mobilize 800 billion euros to increase defense budgets.
Prior to this, the Draghi report had found that three-quarters of EU countries’ defense purchases are from suppliers outside the union.
Crucial for the future of Europe
Both for PensionDanmark, which is the initiator of the fund, and for AP Pension, which is the anchor investor, the launch is a natural consequence of the situation in Europe.
“The need for rearmament in Europe is both great, necessary and urgent. ETNA’s focus on growth and scaling of small and medium-sized companies in the European defense industry allows us to both create attractive returns for our members’ pensions while contributing to society’s security and Europe’s innovative power. That is why we have chosen to take on a central role in making the fund a reality,” says Peter Stensgaard Mørch, CEO of PensionDanmark.
“I am very pleased that with the investment in ETNA we can give our customers an attractive investment opportunity in an area of strong growth, and at the same time assume a social responsibility by contributing to the necessary reinforcement in Europe. It is crucial for the future of Europe to ensure peace and security, and this requires that we have a credible defense. We believe that the type of innovative companies that ETNA will collaborate with will play a crucial role in this development. With the great potential that lies in the fund, I am very pleased that PensionDanmark has taken the initiative for the partnership,” says Bo Normann Rasmussen, CEO of AP Pension.
Head office in Copenhagen and Munich
With its size and focus, the fund is expected to become a significant player in a European context, where there are currently very few private equity funds dedicated to defense investments.
The fund’s founders are a Danish-German team consisting of Frederik Busch, Florian Funk and Wolff van Sintern, who have extensive experience with private equity and expertise in strengthening growth companies across sectors. ETNA is established with headquarters in Copenhagen and an office in Munich.
“For us, ETNA represents the next evolution of the private equity model. Our company and business model are based on a sharp sector focus, specialist skills and a deep network across Europe. This supports our ability to identify high-quality investment opportunities and work actively with them during the ownership period, so that we can deliver attractive returns while contributing to strengthening Europe’s resilience. It is a mission we are immensely proud to have received significant support for from our three anchor investors,” says Frederik Busch, partner at ETNA.
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