The Investment Fund for Developing Countries (IFU), the leading provider of advisory services and risk capital to Danish companies wishing to set up operations in developing countries, announced the raising of DKK 700m in the first closing of the Danish Agribusiness Fund I K/S. The Danish government and IFU contribute in collaboration with the two pension funds PensionDanmark and PKA to the new partnership.

The institutional investors, the Danish state and IFU have committed DKK 700m to the Danish Agribusiness Fund I K/S. Fund raising will continue, and the total equity commitment at final closing is expected to be DKK 800m, of which the majority will be committed by private institutional investors. Bruun & Hjejle facilitated the structuring of the investment entity on terms which accommodate the requirements of both public and private investors.

The Danish Agribusiness Fund I K/S will be managed by IFU and is expected to facilitate investments of close to DKK 6bn in improved production, distribution and food sales in developing countries.

The Danish Agribusiness Fund I K/S will invest capital in projects in Asia, Africa, Latin America and parts of Europe. The fund will be operated on market conditions and will ensure the investors a competitive return.

In advising on the terms for the Danish Agribusiness Fund I K/S Bruun & Hjejle has built on its experience in international fund formation and investment fund due diligence, and the successful closing underlines Bruun & Hjejle’s dedication to alternative investment structures and public/private partnerships.

Bruun & Hjejle acted as sole counsel to IFU and the Danish Agribusiness Fund I K/S.