APs Form Alliance to Fund Infrastructure

    Stockholm (NordSIP) – Together, the Swedish state pension funds AP1, AP3 and AP4 annouced joint venture to invest in unlisted Swedish companies focused on infrastructure.

    From left to right: Kerstin Hessius, CEO of AP3, Johan Magnusson, CEO AP1 and Niklas Ekvall, CEO of AP4 Photo: AP4

    A newly formed entity, Polhem Infra, will make long-term investments in infrastructure in an efficient and cost-effective manner. Sweden, like many European countries has a strong unmet investment needs to renew and develop infrastructure. While the fund may not have received any particular green label, the announcement explicitly cites sustainability and collaboration as the target for the new investment vehicle.

    According to the press release, Polhem Infra will finance businesses that operate or provide socially beneficial services and assets such as renewable power generation, energy storage, energy distribution and digital infrastructure. The comapny’s goal is to be a stable, responsible and long-term owner. Polhem Infra will focus on major investments in the private and public sector, preferably together with other long-term industrial or financial partners.

    The AP funds, which will back Polhem Infra entirely, already have extensive experience in investing and building profitable unlisted companies, such as property company Vasakronan, or others like Hemsö, Ellevio, Rikshem, CityHold and Willhem.

    “Sweden has a great need for both public and private infrastructure investments. Parts of existing infrastructure will require major investments to cope with society’s demands for both quality and sustainability. With a long-term ownership and focused sustainability work, Polhem Infra has the potential to become an attractive and prioritized player and business partner, which in the long term will benefit both the pension system and society as a whole,” said Johan Magnusson, CEO AP1, Kerstin Hessius, CEO of AP3 and Niklas Ekvall, CEO of AP4 in a joint statement (in Swedish).

    Image by Free-Photos from Pixabay

    Aline Reichenberg Gustafsson, CFA
    Aline Reichenberg Gustafsson, CFA
    Aline Reichenberg Gustafsson, CFA is Editor-in-Chief for NordSIP and Managing Director for Big Green Tree Media. She has 18 years of experience in the asset management industry in Stockholm, London and Geneva, including as a long/short equity hedge fund portfolio manager, and buy-side analyst, but also as CFO and COO in several asset management firms. Aline holds an MBA from Harvard Business School and a License in Economic Sciences from the University of Geneva.

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