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FoR betteR PeRFoRmAnce Annual Report 2022 65

INVESTMENT HIGHLIGHTS

European-Based Venture Capital Fund
This Nordic-based venture capital fund has a strong reputation and an extensive experience in investing in the
Nordic region, with access and networks to one of the fastest-growing technology hubs. This marks KWAP’s
first commitment into the European venture capital focused space. This decision was based on the funds’
top-quartile performance over a 16-year period and their reputation for generating significant returns through
their historic track record. This would also provide KWAP with access to high-quality and sought-after
co-investment opportunities. The fund manager has invested and developed 18 unicorn investments across
nine funds via its leading early-stage funds.

Other Notable New Investments
KWAP made its inaugural investment into the impact investing space. Impact investing is a form of investment
strategy that aims to identify significant business opportunities while addressing societal and environmental
needs in a positive manner. It goes beyond traditional ESG-related compliance measures such as negative
screening to avoid causing harm. Alternatively, it seeks to invest in companies and projects that align with
certain themes and have the potential to generate significant social and environmental impact, alongside
financial returns. The overarching goal of impact investing is to drive positive change in society and the
environment, using market-based solutions to address social and environmental challenges.

KWAP is focusing on funds that drive measurable social and environmental impact alongside business
performance and strong returns with a strong focus in developed markets (70%) and developing markets
(30%) as well as 60% target exposure in growth equity and 40% in buyout. This is driven and guided by
17 United Nations Sustainable Development Goals and a commitment to invest in Education, Financial
Inclusion, Healthcare, Impact Services, Food & Agriculture and Climate & Conservation.

Proven European Buyout Manager

In pursuit of further enhancing KWAP’s relationship with external managers, a strategic decision to re-up in
an existing fund manager with an increased ticket size was made into a renowned fund manager in the Nordic
buyout space. This marked KWAP’s third re-up into its first European investment foray; a fund with a proven
track record of strong investment strategies. The fund ranked in the top quartile among its peers, with a keen
focus on the financial services, healthcare, technology and payments sectors. Its investment strategies have
yielded impressive results and its vintages have performed strongly as KWAP’s first commitment to the fund
had managed to return the capital invested, indicating successful fund deployment. This demonstrates a
commitment to identifying high-performing fund managers with sound investment strategies that align with
KWAP’s goals and objectives.