The Danish government's new strategy for entrepreneurship is expected to help strengthen the framework for the pension industry’s investments in growth companies, Forsikring & Pension (F&P) has said.

The Danish government unveiled plans designed to encourage greater entrepreneurship in Denmark earlier this month, including a number of regulatory reforms and tax changes.

F&P also pointed out that the new strategy will clarify how the pension companies can get a better framework for investing in, among other things, entrepreneurs and growth companies.

Given this, it welcomed the broad support seen in the Folketing for the new strategy, arguing that there is broad agreement that entrepreneurship and innovation are two "essential elements" for Denmark's future with a small, and open, economy.

The association also said that whilst there are many challenges for pension companies to invest in non-listed companies, including scale-ups and ventures, this agreement sets out to resolve those issues.

F&P CEO, Kent Damsgaard, said: “It is important for Denmark that we have a strong undergrowth of companies, and therefore this entrepreneurial package is also good, as it will support further growth in the future and now also gives us a better opportunity for us as an industry to lean into the area.

“We are pleased that the parties behind the agreement would like to make it simpler for the pension companies to invest in Danish unlisted companies. We are also open to developing new and better cooperation opportunities, for example with EIFO, which is called for in the political agreement.”

Damsgaard acknowledged that there is difficulty getting more companies to grow and raise capital in Denmark and Europe, noting that, for pension companies in particular, it is “very difficult” to invest in this segment for many reasons.

“But we have, for example, through collaboration with EIFO, raised capital for smaller companies on a growth journey,” he clarified.

“The new political agreement shows a way to remove barriers for the pension companies in investing in Danish utility companies”

Recent calculations from F&P showed that pension companies have collectively invested more than DKK 1bn in Danish start-ups and growth companies through Danish Growth Capital, with a further DKK 1bn invested in companies outside the country's borders.

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