Norway’s sovereign wealth fund looking to diversify with investments in unlisted companies

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Norway’s sovereign wealth fund is reportedly seeking permission to broaden its investments into unlisted companies.

The move comes after years of deliberating on whether or not to invest in unlisted businesses.

The $1.06tn fund has previously lamented its inability to make investments in companies such as Uber Technologies and Airbnb that have grown rapidly without a stock market listing, according to Reuters.

Last year the finance ministry asked the wealth fund to review options for investing in unlisted companies.

The central bank told Reuters, “If the Ministry does permit unlisted equity investments, the Bank will approach investment opportunities and build expertise gradually, invest via and alongside others.”

The fund is only likely to go ahead with unlisted investments if and when it was expected to improve the trade off between risk and return.

It currently has around 65.9 per cent of its assets in listed stocks, 31.6 per cent in bonds and 2.5 per cent in real estate.

Back in 2014, AltAssets reported that the fund had been urged to diversify amid a period which saw spending increase and returns dwindle.

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