Danfonds Preps Carbon, African Credit Funds

Dec 3 2008 | 10:52am ET

Copenhagen, Denmark-based Danfonds is readying a pair of new offerings to be added as separate classes of its maiden hedge fund, Danfonds Frontier Funds SPC.

The firm is currently in talks with C-Questor, a cleantech company, to launch Carbon Class Shares under the Frontier Markets umbrella. The sub-fund will invest in early stage companies that capture and remove greenhouse gases from the atmosphere using silvicultural (tree) sequestration, aquacultural (marine) sequestration, geological (sub-surface) sequestration and terrestrial (land) sequestration. The fund will also invest in companies exploiting alternative renewable energy sources such as the sun, wind, biomass and waves, which produce either little or no greenhouse gases.

The carbon share class will initially be closed to outside investors and initial seed funding will come from C-Questor and other sources.

In addition, the firm is in negotiations with an external team of managers to launch an African credit fund. In a published article, Danfonds’ CEO Daniel Broby wrote that, “The vast majority of African countries have rudimentary fixed income markets, with debt instruments of short duration. Government bonds do not exist in most African countries but their arrival and/or increased sophistication is imminent.”


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...