As an active, strategic minority investor, Norfund contributes with expertise and experienced board directors to its portfolio companies.
Securing competent boards of directors for our portfolio companies is important. The Board of Directors is appointed to act on behalf of the shareholders to run the day-to-day affairs of the investee company. Norfund evaluates the composition of the existing Board and assesses which competencies would be the most value-adding.
Through our networks in Norway and abroad, we then identify individuals who can provide these competencies. These may include expertise from a particular industrial sector or appropriate experts in business development or corporate governance. In certain cases a Norfund senior investment professional may be nominated to the Board.
Alignment and cooperation between a Project Team and the investee’s Board is important.
To distinguish clearly between the role of a Board Member and a Project Manager, Norfund typically assigns each role to two respective individuals. Alignment and cooperation between a Project Team and the investee’s Board is important, as is adherence to the principles of good corporate governance
Monitoring and support
Norfund’s Project Manager and the supporting team closely follow the activities of the companies we invest in from a shareholder perspective. We monitor, for example, whether enterprises are:
- Operating in accordance with the agreed strategy
- Performing according to the company’s financial plans
- Practising satisfactory corporate governance and internal control
- Following domestic laws and international standards
- Taking environmental and social concerns into account
- Ensuring a satisfactory working environment
Norfund can offer business development and support through its Grant Facility scheme. The scheme allows us to co-finance improvement initiatives such as management systems, governance policies and routines, energy efficiency, accounting, occupational health and safety, and capacity building. It is an important tool which helps us to practise active ownership and to further enhance the development effects of our investments.