Storebrand has entered into an agreement to acquire an additional 50% of the shares in Danish infrastructure fund manager AIP Management P/S (“AIP”) to reach a direct ownership of 60%. AIP is founded by PKA and headquartered in Copenhagen with total commitments from investors of €8 billion (NOK 90 billion).
In 2020, and in conjuncture with committing capital to the AIP platform, Storebrand Asset Management AS (“Storebrand”) acquired 10% of AIP, as the first international partner and investor to the Danish infrastructure fund manager.
The increased ownership gives Storebrand control over a well-established infrastructure platform that is complementary to its existing alternatives offering that includes real estate, private equity, and private credit. At the same time, AIP will benefit from Storebrand’s strong market position, scale, and investor relationships.
AIP will continue to be led by its current Partners, retaining its independence and operating under the AIP brand, as part of the Storebrand Asset Management multi-boutique offering. The owners, which continues to include the Danish pension funds PKA and PenSam as well as the Partners in AIP, will build upon the strong partnership to further develop and strengthen the AIP platform.
“AIP will expand our investment offering in infrastructure and will strengthen Storebrand Asset Management’s position as an investment partner and a leader in sustainable investments. Our clients show great interest in long-term investments with stable returns and positive impact like infrastructure. AIP has a strong track record and sustainable investing is at the core of AIP’s investment strategy. The partnership with the other Danish pensions funds has worked well and together we now take AIP to the next level”, says CEO Storebrand Asset Management Jan Erik Saugestad.
Storebrand currently manages an infrastructure fund, Storebrand Infrastructure Fund, with total commitments of about EUR 1bn. This fund, and the recently established successor fund, will continue investing in line with the established mandates. AIP is already a key strategic partner for the Storebrand Infrastructure Funds. AIP, which has €8 billion (NOK 90 billion) in committed capital, adds investment capabilities and a complementary network for deal sourcing to accelerate the position in Denmark, the Nordics and internationally.
“I am proud of what we have achieved to date and impressed by PKA’s vision to enter the renewable energy market more than a decade ago. The partnership with Storebrand has been positive and transparent, rooted in shared values. With Storebrand as a majority owner, we have a great partner that can help unlock our potential and accelerate the drive towards a net zero economy by enabling even more investors to invest in the energy transition”, says Managing Partner, AIP, Kasper Hansen.
PKA were early movers investing in renewable energy and founded AIP in 2012. This initiative aimed to boost PKA’s green energy investments and create a platform for other investors. Just over a decade later the success is evident, with investments in infrastructure now providing green electricity to 5.9 million households across Europe and North America.
“Together with the team at AIP, we have established a highly specialized platform that delivers great results both for the green transformation of the European and North American energy infrastructure and industry, while also delivering impressive long-term returns to our members’ pensions”, says Jon Johnsen CEO PKA, adding,
“AIP has now reached a point where the company is ready to take the next steps in its development so that more investors can benefit from AIP’s expertise and investment opportunities. Therefore, we have concluded that Storebrand, with its size and commercial platform, is a more natural majority owner for AIP Management in the future.”
Additional quotes Jan Erik Saugestad
“There are significant investment needs to support the energy transition and this spans from new infrastructure in production and distribution to upgrades of existing infrastructure “
“Key financial characteristics of infrastructure investments are long-term stable cash flows, low correlation with other asset classes, and cash flows that keep pace with inflation. The investments often have a sole supplier position, with high demand and predictable cash flow, making it attractive for investors”
“With the Storebrand Group’s life insurance companies as anchor investors, our clients are offered unique investment opportunities to co-invest. Real assets also provide essential services to society and enable sustainable transformation”
Additional quotes Kasper Hansen
“AIP has invested more than EUR 7 bn in infrastructure assets to drive the green energy transition. We will continue to leverage our investment platform and expertise by further specializing, focusing on our core competencies, and accelerating the impact we can have on the much-needed energy transition”
“AIP will benefit from Storebrand’s strong platform, scale, and investor relationships. This will enable even more investors to invest in the energy transition, one of the largest mega trends in our lifetime, in an efficient manner”
“When considering the next step in our journey, preserving our culture and values, which are at the core of what we do and our interactions with others, was an important factor. Our culture is in many ways what sets us apart and has allowed us to be successful. Given our great partnership with Storebrand and shared values, they were a natural choice for the new majority ownership of AIP”
Additional quotes Jon Johnsen
“We are very pleased with the agreement with Storebrand, and we look forward to following and benefiting from AIP’s development in the new ownership structure. We at PKA will continue to be deeply engaged in AIP both as a minority owner of the management company and as an investor in AIP’s projects, and of course, we will retain all our existing investments via AIP.”
About Storebrand
Storebrand is a Nordic financial group, delivering increased security and financial wellness for people and companies. We offer sustainable solutions and encourage our customers to take good economic decisions for the future. Our purpose is clear: we create a brighter future. Storebrand has about 55,000 corporate customers, 2.2 million individual customers and manages NOK 1,281 billion. The Group is headquartered at Lysaker outside of Oslo, Norway. Storebrand (STB) is listed on Oslo Stock Exchange. Visit us at Storebrand.no
About AIP Management
AIP Management specialises in energy and infrastructure investments that facilitate the energy transition in Europe and North America. Our team comprises 90 professionals with extensive expertise in investments and energy working from Copenhagen, London, Madrid, and New York. To date, AIP has invested over €7 billion in energy transition assets. This includes renewable energy assets with a capacity of approximately 7 GW. Once fully operational, AIP’s investments, will contribute to avoiding 10 million tons of greenhouse gasses and support about 5.9 million households with renewable electricity. Visit us at aipmanagement.dk
Head of Investor Relations, Amanda Tonsgaard: at@aipmanagement.dk or (+44) 758 373 2020
About PKA
PKA is one of Denmark’s largest pension funds. We provide lifelong security to a community of over 360,000 members, predominantly from the social and health sectors. The members are also our owners. On their behalf, we manage assets of DKK 440 billion, which we invest in solar power, wind power and the UN’s Sustainable Development Goals. We are proud to be a green leader in the pension industry. Because long-term, responsible investments generate good returns for our members, while contributing to a sustainable future. Visit us at pka.dk
Head of Media Relations, Nicholas Rindahl: nrl@pka.dk or (+45) 30 16 11 24
Examples of investments
Solar power: Garland & Tranquility
https://aipmanagement.dk/investments/garland/
https://aipmanagement.dk/investments/tranquility/
https://www.skyfish.com/sh/d56ukq9c/1ad20394/1465349/sorting/created/order/desc
Green Steel: H2GS
https://aipmanagement.dk/investments/h2-green-steel/
https://www.skyfish.com/sh/fi6tjug9/1ab60391/2363384/sorting/created/order/desc
Wind Power: Walney Extension
https://aipmanagement.dk/investments/walney-extension/
https://www.skyfish.com/sh/fxaiv4ny/1aae0390/1465345/sorting/created/order/desc
Transport: Agility Trains East
https://aipmanagement.dk/investments/agility-trains-east/
https://www.skyfish.com/sh/jizncfks/1ad50391/1799012/sorting/created/order/desc