Den Sociale Kapitalfond has raised DKK 114m in the first closing for its second impact fund, which, through social impact investments, will help vulnerable citizens, increase their quality of life while also creating financial return. The purpose is to improve the quality of life for 4,000 people in Denmark and to generate public sector savings of DKK 1bn.
Den Sociale Kapitalfond launched its first fund for social impact investments (“Effekt I”) in 2021, which, at the time, was the first private equity fund in Scandinavia in this area. Since then, Effekt I has helped more than 500 people into the labour market or to become self-supporting through 20 projects in collaboration with 16 municipalities and one business. So far, this has resulted in public transfer payment savings of almost DKK 100m.
Social impact investments are partnerships in which a fund lends a private business money to provide services for a municipality. Once the specific social impact has been achieved, the municipality pays part of the savings back to the private service provider who will then pay back the loan to the fund together with a financial return. Thereby, the fund takes all the risk as the municipality will only pay if the social impact is achieved.
The investors in Effekt II include PKA, Lind Foundation, Lauritzen Fonden, Sparekassen Sjælland-Fyn and Denmark’s Export and Investment Fund (EIFO).
Accura assisted Den Sociale Kapitalfond with the establishment of the fund.