Managed Based on Social Results
Den Sociale Kapitalfond Invest I K/S was set up by the investment company Danish Social Capital Fund in 2017. The fund seeks to create jobs for people in vulnerable groups in Denmark and to generate both a financial and a social return.
The fund’s investment capital totals DKK 289 million, and its aim is to invest in 10-20 companies over the course of its ten-year life. The model is structured such that the fees paid to the fund manager are determined by the fund’s social and financial bottom lines.
The fund’s investors include the European Investment Fund (EIF), The Danish Growth Fund, Tryghedsgruppen, the Novo Nordisk Foundation, Sparekassen Sjælland-Fyn, the Hempel Foundation, the Færch Foundation, Østifterne, Færch og Døtre, and The Danish Social Capital Fund. Ferd Social Entrepreneurs invested in the fund in 2018 and is an active member of the fund’s Investment Advisory Board.
By the end of 2022, the fund had invested in seven companies: Koatek, Danpal, Profilservice, Auto Mobil, WaterCare, BM Silo and Tolstrup. The fund exited its investments in HITSA and Refurb in 2022, with strong financial and impact returns.
On average, in Q3 2022, 18% of the employees at these seven companies were from marginalized groups, and in Q3 2022 this totaled120 people. Based on analysis work carried out by the fund, this means they are in the top tier of ‘inclusive’ medium-sized companies in Denmark (50-249 employees). The fund’s five-year social impact objectives are defined on a case-by-case basis and typically include for 20% of employees at the companies in which it invests to be from marginalized groups, among others. The fund has defined intermediate KPIs for the first five years, and 124% of these were achieved in Q3 2022. Each company has a long-term five-year target, and 53% of these were achieved in Q3 2022.
Ferd SE is pleased that our investment in this fund has helped provide these strong social results. Our investment is also helping to strengthen pan-Nordic collaboration and knowledge transfer in the field, which is important to us.
