Dutch pension fund ABP has invested €250m (£208m) into the newly launched Scaleup Europe Fund as part of plans to increase its exposure to European venture capital and growth equity.
The commitment forms part of a phased strategy by the investor to commit approximately €1bn (£833m) to the asset class over the next three years.
The Scaleup Europe Fund, which has a €5bn (£4.2bn) target, will provide late-stage expansion capital to growth-stage technology businesses across Europe, including UK scaleups operating within the broader European market. It was established through a joint initiative between the European Commission and a group of European institutional investors.
Fund manager EQT will act as investment adviser for the vehicle, directing growth capital into strategic sectors including artificial intelligence, quantum technology, energy technology, space technology and medical technology.
According to ABP, European technology companies face a funding gap when scaling operations past Series C rounds, creating attractive long-term equity return opportunities for institutional investors while challenging domestic UK growth funds for late-stage deals.
Harmen van Wijnen, chair of the executive board at ABP, said: “Our primary responsibility is to deliver a good pension for our participants. This investment supports that objective. We see attractive return opportunities in a market where many innovative companies struggle to access sufficient growth capital. By investing selectively in these businesses, we expect to create long-term value for our participants.
“Europe is home to exceptional talent, knowledge and technology. Yet too many successful growth companies still move to other markets to secure financing. Greater availability of capital can help ensure that innovation, economic value creation and jobs remain in Europe. The Scaleup Europe Fund contributes to that goal.”
