Fonden Realdania, a Danish charitable investment association, has backed the launch of a new private equity firm hoping to capitalise on opportunities in the Danish construction industry.
The association, which cites improved housing, innovative architecture and historic building preservation among its core aims, is providing a cornerstone E80m to Dania Capital K/S – Fond I. The fund will look to raise an additional E80m over the next twelve months.
“Fonden Realdania wishes to place a larger part of the fund capital in unquoted shares. The decision to establish Dania Capital supports one of Fonden Realdanias main purposes, namely to make a yield optimisation of the fund capital,” says Fonden Realdania managing director Flemming Borreskov. “Our analysis of the construction and building industry has shown us that we can reach a favourable return on funds placed in a focused private equity company in this sector,”
Dania Capital will acquire controlling stakes in businesses with turnover ranging between E13m and E70m. Dania Capital says it expects to participate in generational change within the industry, support the spin-off of company divisions and to invest in expansion as well as industry consolidation plays too. The fund will not invest directly in real estate assets.
“The construction and building industry is by far the largest single industry in Denmark and comprises over 20 per cent (E54bn) of the country’s gross trade,” said Dania Capital managing director Thomas Dywremose. “The industry is further comprised of multiple sub-industries with solid financial results and a considerable potential for further value creation.”
The new fund's team of four advisors comprises managing partner Thomas Dywremose; Søren Jessen Nielsen, a former partner at Danske Private Equity; Jørgen Jensen, partner and Thor Hvid, also a partner.