Private equity funds invest in companies that are not publicly listed, often referred to as active ownership capital. This enables ownership in businesses that are earlier in their development or that have clear potential for improvements through active ownership. DNB Private Equity provides exposure to a global portfolio of leading private equity firms and seeks to invest in actors with a proven ability to create value over time.

Investments are primarily made through publicly listed private equity companies, and the fund builds on the largest and most liquid PE companies globally. The fund is based on the LPX50 index, which includes the 50 largest and most liquid players within the PE universe. Many of the companies are so-called "hybrids" that combine capital investments and management, thus providing broad exposure to various segments such as buyout funds, venture, and growth capital.

Private equity follows a clear investment cycle, where value creation typically occurs in four phases: fundraising, investment, value creation, and exit. The fund considers, among other things, the management, business model, and growth potential of the underlying companies, while also taking macro conditions, strategy, and liquidity into account.

This is a long-term investment in a less liquid asset class. The actively managed equity fund provides exposure to an attractive asset class that has historically delivered higher returns than the broad equity market. At the same time, private equity has lower liquidity, making the fund suitable for investors with a long-term horizon who wish to diversify risk and participate in value creation outside the stock market.

Main investment areas:Global publicly listed private equity companies engaged in active ownership capital, buyout, venture, fund investments, and hybrid models, with particular emphasis on companies capable of value creation in private markets.