A new Danish IT technology venture fund focusing on investments in Nordic companies will be established in early 2006. The investment capital of the fund is DKK 1 billion and ATP is the primary investor in the fund, which is administered by the management company Via Venture Partners A/S. The managing partner of the company is John Helmsøe-Zinck.
Via Venture Partners is a new Danish player in the Nordic venture investment market for small IT technology growth companies. Boasting an investment capital of DKK 1 billion, Via Venture Partners immediately positions itself among the major Nordic players in this segment. John Helmsøe-Zinck, managing partner of the management company, expects the fund's investments to centre on companies in the start-up or expansion stages.
The fund, Via Venture Partners Fund I K/S, will be established as a Danish limited partnership and the management company, Via Venture Partners A/S, will be established as a Danish limited liability company. It is planned to set up an office in Stockholm within 12-18 months.
Most of Via Venture Partners Fund I K/S' investment capital of DKK 1 billion will be contributed by ATP, while the rest will be provided by the partners and employees of the management company. The overall investment strategy to be pursued by the management company will be determined by the investment fund (Via Venture Partners Fund I K/S) in which ATP holds the controlling interest.
ATP has a minority share in the management company Via Venture Partners A/S in which John Helmsøe-Zinck, in conjunction with the other employees of the company, will have a majority holding when the management company is established in early 2006.
The management company will operate within the framework of the overall investment strategy and investment procedures and in accordance with a management agreement concluded with the fund. Individual investment decisions regarding the fund will be made by the partners of the management company Via Venture Partners A/S.
Via Venture Partners operates independently of other private equity activities conducted by ATP.
The Danish Minister of Economic and Business Affairs, Mr Bendt Bendtsen, says:
"It's encouraging to see the results of our discussions on venture capital with the pension industry in 2004. I therefore welcome ATP's plans to establish a large new venture fund focusing on IT. However, more pension investments in the venture market are urgently needed – and we are still a long way from the DKK 30 billion increase in new investments by 2010 envisaged by the government in its venture capital action plan devised in January.
Bjarne Graven Larsen, Chief Investment Officer at ATP, says:
"For several years, we have been focusing on increasing our investments in private equities through ATP's fund-of-funds company, ATP Private Equity Partners, which invests in domestic and foreign private equity funds. Our activities have been successful and will be maintained at the same level.
In view of the positive experience with ATP Private Equity Partners we have decided to get more directly involved in the venture investment area and to act as the driving force behind the establishment of a venture fund – not only as an investor, but also as an entrepreneur and minority owner of the management company. We have achieved this goal - in cooperation with John Helmsøe-Zinck and his future partners - with the establishment of Via Venture Partners", says Bjarne Graven Larsen, adding that he trusts the new fund will help to further strengthen the position of Denmark and the other Nordic countries internationally within IT technology.