Sweden’s Folksamgruppen, which includes KPA Pension, has invested just over SEK 500m in the Norrsken Venture Capital Fund II.

The fund invests early in company startups, with the aim of addressing climate issues around the globe while striving for strong financial returns.

KPA Pension makes up the bulk of the investment, with SEK 316m, followed by Folksam Liv (SEK 105m), Folksam Employment Pension (SEK 82m), and the Consumer Cooperative’s Pension Foundation (SEK 23m).

The venture capital fund is Europe’s largest in its field and is oversubscribed to €320m.

It has invested in more than 30 startups with a focus on making a difference in areas such as climate, the energy transition, and health and education.

Folksamgruppen said that alternative investments, such as in venture capital, complement its portfolios with their long investment horizons, which also gives its customers exposure to unlisted assets.

In connection with the investment, Folksamgruppen has taken a seat on the fund’s advisory committee, which enables the group to follow the investment’s return and impact closely.

Commenting on the announcement, Folksamgruppen head of alternative investment, Rebecka Elkert, said: “The investment in Norrsken VC ll is well in line with Folksamgruppen's goal of being an active player towards net zero and transition.

“We have full confidence in Norrsken VC's ability to drive development by supporting innovative entrepreneurs and startups that tackle some of the world's major climate challenges while building successful new companies.”

Norrsken is based in Stockholm and its investment philosophy is based on the UN’s 17 sustainability goals.

It invests in startups that “strive to solve the world's most pressing problems while developing financially successful companies”, according to Folksamgruppen.

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