Stockholm (NordSIP) – The ability of Sweden’s state pension buffer funds to properly manage unlisted investments is being called into question in the aftermath of the Northvolt collapse. On 2 June 2025 the Minister for Financial Markets Niklas Wykman announced the commissioning of a formal review of the current procedures and resources employed by the four main AP funds to invest in illiquid assets classes.
AP1, AP2, AP3, and AP4 had invested in the battery manufacturer Northvolt via a jointly-owned investment vehicle named 4 to 1 Investments, but were forced to write off the €137 million holding in February 2025 as the Swedish company faced bankruptcy. The investment guidelines applied to the AP funds were updated in 2020 to better reflect changes in capital markets. This included the lifting of a previous 5% cap on unlisted investments to introduce a new maximum of 40% of fund assets.
While the current share of unlisted assets across the four buffer funds has grown to 25%, it is estimated that only around 10% of staff are dedicated to these asset classes. In announcing the review Minister Wykman noted that 4 to 1 Investments has no employees and has not invested in any other companies other than Northvolt. The review has been assigned to Arkwright Consulting, which has been involved in previous consultations on restructuring Sweden’s pensions buffer funds and is contracted to produce an annual performance evaluation.
The Ministry for Financial Markets has tasked Artwright Consulting with carrying out a full review of the AP funds’ current practices, internal expertise, framework, and vehicles used for unlisted assets, including joint ventures and co-investments. Minister Wykman expressed hopes that valuable lessons could be drawn from the Northvolt debacle and the AP funds’ handling of illiquid investments improved to avoid similar losses in the future.
Arkwright Consulting has been set a deadline of March 2026 to present its final conclusions.
Image courtesy of Sebastian Nikiel on Pixabay
Stockholm (NordSIP) – The ability of Sweden’s state pension buffer funds to properly manage unlisted investments is being called into question in the aftermath of the Northvolt collapse. On 2 June 2025 the Minister for Financial Markets Niklas Wykman announced the commissioning of a formal review of the current procedures and resources employed by the four main AP funds to invest in illiquid assets classes.
AP1, AP2, AP3, and AP4 had invested in the battery manufacturer Northvolt via a jointly-owned investment vehicle named 4 to 1 Investments, but were forced to write off the €137 million holding in February 2025 as the Swedish company faced bankruptcy. The investment guidelines applied to the AP funds were updated in 2020 to better reflect changes in capital markets. This included the lifting of a previous 5% cap on unlisted investments to introduce a new maximum of 40% of fund assets.
While the current share of unlisted assets across the four buffer funds has grown to 25%, it is estimated that only around 10% of staff are dedicated to these asset classes. In announcing the review Minister Wykman noted that 4 to 1 Investments has no employees and has not invested in any other companies other than Northvolt. The review has been assigned to Arkwright Consulting, which has been involved in previous consultations on restructuring Sweden’s pensions buffer funds and is contracted to produce an annual performance evaluation.
The Ministry for Financial Markets has tasked Artwright Consulting with carrying out a full review of the AP funds’ current practices, internal expertise, framework, and vehicles used for unlisted assets, including joint ventures and co-investments. Minister Wykman expressed hopes that valuable lessons could be drawn from the Northvolt debacle and the AP funds’ handling of illiquid investments improved to avoid similar losses in the future.
Arkwright Consulting has been set a deadline of March 2026 to present its final conclusions.
Image courtesy of Sebastian Nikiel on Pixabay
