Private equity

Private equity funds can either take the form of funds for collective investment, as provided for in Act No. 128/2011, on Undertakings for Collective Investment in Transferable Securities (UCITS), Investment Funds and Institutional Funds, or funds in enterprise form. In recent years, it has become common in Iceland for such funds to be established as limited partnerships. No special legal provisions apply to private equity funds, but, characteristically they generally invest in unlisted equities of well established companies with the aim of implementing various transformations to increase the value of the investment.

Private equity funds are often established based on the assumption that they will be wound up within a set time frame (pre-determined lifetime); however, this is not always the case. Within the fund's lifetime, there is a defined investment period during which the fund identifies suitable investments and draws on subscribed capital from its shareholders followed by a transformation period during which the fund implements its value-enhancing changes for the companies it has invested in.

  • Horn II - Private Equity Fund
  • Icelandaic Tourism Fund I
  • Brunnur vaxtarsjóður - Venture Capital Fund


Landsbréf institutional funds

Institutional funds are funds for collective investment open only to institutional investors. Institutional funds are subject to Act No. 128/2011, on Undertakings for Collective Investment in Transferable Securities (UCITS), Investment Funds and Institutional Funds, and are subject to supervision by the Financial Supervisory Authority (FME), as provided for in Articles 62 and 63 of that Act. 

There are no legal stipulations on the content of the investment strategies of institutional funds. As a result, and due to the nature of such funds, their investment strategies may vary greatly, to provide for everything from a single investment to diverse asset portfolios.

  • Landsbanki Aquila Real Estate Fund 1
  • Landsbanki Mezzanine Fund II
  • Landsbréf LBS I
  • Hekla fagfjárfestasjóður