Norfund – Norwegian Investment Fund For Developing Countries

Norfund aims to invest in countries where they can have the greatest impact. In countries where the private sector is weak and access to capital is scarce.

Norfund’s priority sectors are:

Norfund also invests in some specialized small and medium sized companies (SMEs) funds to support SMEs in developing countries.

Financial instruments:

Norfund gives priority to equity investments because equity is the scarcest type of capital in most developing countries. Equity investments are normally from USD 4 million and above. Norfund takes maximum 35% ownership share. Norfund also offers loan to selected companies.

Risk capital


Norfund’s equity investments are from about NOK 20 million (4 million USD) and above. The fund takes maximum 35% ownership share. The projects normally have a total equity of NOK 100 million and above. Norfund takes a position as an active owner, and follows the development of the company closely.


Norfund normally only offers loans to companies in which the fund already has an equity position. But the fund can offer ordinary loans to financial institutions like banks, or in some cases to other companies (e.g. small, Norwegian enterprises; see below). The loans are in the same size range as equity positions.

SME funds (private equity funds):

In addition to investing directly in companies with equity and or loans, Norfund invests equity indirectly through SME funds. Norfund invests in funds that have an investment strategy aligned with the Norfund strategy, that is funds that work to develop local SMES in the Norfund geographies. The SME fund positions are in the same size range as the direct equity investments.

To learn more about Norfund, please visit Norfund’s website.