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Sweden’s AP1 among backers for new SDG fund from Sweden-based Summa

PRI’s Skancke a board member at ‘megatrend driven’ investment firm

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Första AP-fonden (AP1), the SEK324bn (€30.5bn) Swedish state fund, has emerged as an investor in a new fund targeting the UN Sustainable Development Goals from Summa Equity – the Swedish private equity house which counts Principles for Responsible Investment Chair Martin Skancke among its board members.

Summa said it has closed its Summa Equity Fund II with investor commitments of SEK6.5bn – taking its total commitments in its two funds to SEK11bn.

Fund II will focus on “megatrends such as ageing demographics, movement of people, resource scarcity, population growth, climate change and technology disruption” it said – adding that it attracted “top-tier endowments, foundations, pension funds, insurance firms and fund of funds” – both “traditional and sustainability-oriented investors” from the Nordics, Europe and North America. The only investor named is AP1, which is looking forward to a “close and fruitful cooperation” with Summa.

“AP1’s overriding goal is to deliver the best possible return on pension savers’ money,” said Jan Rådberg, Portfolio Manager Private Equity at AP1.“We are convinced that one way of achieving this goal is by considering sustainability aspects in our investment decision process. We seek investments which are characterized by sustainable value creation. We are therefore excited to invest in Summa Equity, and look forward to a close and fruitful cooperation.”

In the recent Responsible Investor in-depth series on the AP funds, AP1 described how new ESG rules for the funds mean they are now being told to “lead the pack”.

“We are seeing several challenges unfolding simultaneously; environmentally, socially, and with technology disrupting industries,” said Reynir Indahl, the former Altor Equity Partners executive who is Summa’s Managing Partner – adding that the biggest challenges are the “most attractive investment opportunities”. Summa, which describes itself as a megatrend driven, lower mid-market Nordic private equity firm, was founded in 2016.

Its board includes, alongside Skancke, former Swedfund CEO Anna Ryott and ex-Clinton Climate initiative Senior Director Göran Carstedt.