AP Fond 6 launches tech fund

The Swedish pension fund has teamed up with Skandia Life to launch a E36m technology to target the region's underfunded early-stage businesses.

Swedish pension fund AP Fond 6 has teamed up with Skandia Life to launch an early-stage fund targeting Scandinavian businesses that currently lack funding due to the decline of the technology sector.

The new fund, Creandum, will have up to SKr350m (E36m) for seed investments in technology businesses which display a ‘potential global reach’. Creandum will look for innovative ideas that can be patented, preferably for applications that can be commercialised in growth markets around the world.

The initial funding will be provided by AP Fond 6 and Skandia although it is possible that further investors in Creandum will be sought at a later date. AP Fond 6 and Skandia Life hope to provide around SKr100m each to the fund, with the remainder coming from third party institutions including one international fund.

Creandum fund manager Till Gutzen said the fund will play an important role in Swedish technology investment, which has fallen sharply since the 2000. 'We realised that if the lack of investment continued at its current pace there would be considerable shortages in technology R&D a few years down the line.' It has not been decided how much capital will be invested in each company, although initial investments will only amount to 30 per cent of the total commitment.

The fund is currently in the process of recruiting board members and management as well as setting up an investment advisory board with representatives local institutions including universities, research institutes and development companies.

Since its formation in 1996, the Fund has gradually increased its ownership in primarily unlisted small and medium-sized growth companies and currently has around SKr11bn invested or committed. AP Fond 6 already commits funds across a range of private equity interests, including, buyouts, life sciences and industrial investments.