But now 140 million can end up in foreign companies

The Canadian fund is in the process of setting up an individual office in Oslo to fulfill the mandate of Norwegian politicians and obtain capital from Nysnø, but there is no guarantee that the money will be invested in Norway. – A sufficiently strong signal in itself, says investment director Eivind Egeland Olsen.

Recently placed Investments Nysnø Climate NOK 140 million to the Canadian Environment Fund Arctern Ventures II.

This is the largest investment made by the Norwegian state company to date, and the first in a foreign fund. In return, the Canadians are opening their first office outside their home country in Oslo – initially with one employee, as Nysnø’s mandate requires investment objects to have operations “in or out of Norway”.

But despite the political intention that Nysnø money should build a sustainable Norwegian business community, this does not necessarily mean that Norwegian businesses will benefit from the 140 million.

– In our opinion, the fact that they are moving here is a pretty strong signal in itself, says the investment manager at Nysnø, Eivind Egeland Olsen.

Direct value creation

– In general, it is not true that a fund per se should invest in Norway. That he can establish world-class competence environments in Norway is part of his mandate. An example could be a fund in Norway that invests in the deployment of new renewable technologies internationally, he adds.

In a recent interview with Shifter, the Canadian fund manager said Murray McCaig that it could benefit Norwegian companies if the fund opened an office in Oslo, but stressed that they were looking for the best cases – regardless of geography.

Nevertheless, Nysnø management is fully aware that the record investment is in line with the mandate, and rightly so.

– We wouldn’t invest in such a fund if we didn’t think they would invest in Norway. And they wouldn’t have settled in Norway if they didn’t intend to. At the same time, a fund environment is a business in itself, and when leading managers want to use Norway as a base to invest in cutting-edge climate technology, we find that exciting. This is direct value creation, ecosystem strengthening and good for the climate, says Egeland Olsen.

Not a theme

In some cases, Nysnø may impose restrictions on how the money they place in various funds should be used, says Egeland Olsen. However, due to confidentiality related to the terms of the agreement between the fund and the investors, he will not comment on this specific issue.

The question of whether the mandate allows for this type of agreement to be concluded without Norwegian companies benefiting from the investments has not been a subject at Nysnø.

– We always adhere to the mandate given to us, and we are so focused on creating good opportunities for Norwegian companies and strengthening Norway’s position in asset management, particularly with a focus on sustainability and climate, says the investment director of the Stavanger fund.

Nysnø has already invested in starter rockets Disruptive Technologies And Otovoas well as the solar factory NorSunthe technology company Intelligent systems and the Bergen Foundation Sarsia Seed Fund.

In the previous state budget, funds for Nysnø were doubled, while a new review of the political apparatus cast doubt on the future of the fund.

Ralph Hutchinson

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