This is how Tangen invested before obtaining the work of the Petroleum Fund – VG

On Wednesday night, the Norges Bank Supervisory Board received answers to 26 questions they asked about the appointment of the new oil fund manager Nicolai Tangen. The Supervisory Board, chaired by Julie Brodtkorb, oversees the central bank on behalf of the Storting.

The document is 83 pages long and contains a series of attachments, including summaries showing where the experienced administrator has invested his private funds.

VG has counted, showing that Tangen had personally invested more than £ 67m in various offshore-based funds and investment companies at the end of the year. This was equivalent to just over NOK 785 million.

Here is the list:

• $ 284,913,910: “The Russian Prosperity Fund”. Registered in the Cayman Islands.
• 128,588,898 DKK: “Ennismore European Smaller Corporation Companies Hedge Fund”. Registered in the Cayman Islands.
• $ 64,887,611: “Broadwalk Select Services Fund, Ltd.” Registered in the Cayman Islands.
• NOK 58,075,111: “Egerton Long-Short (EUR, GBP & NOK) Limited”. Registered in the British Virgin Islands.

According to the report, Tangen should no longer be an active investor. According to Norges Bank, therefore, Tangen has already requested the sale of funds managed by others other than the fund he founded himself, AKO Capital.

Tangen had also invested in these investment companies:

• $ 173,212,192: “Northzone IX LP”. Registered in Jersey.
• DKK 76,311,650: “Runa Capital Fund I L.P.” Registered in the Cayman Islands.

These investments are in addition to the equity stakes in AKO Capital, the investments in the AKO Trust to liquidate and the money invested in its charity, the AKO Foundation.

When Tangen landed the job as an oil fund manager on March 26 of this year, he had a total of around SEK 7 billion, according to Dagens Næringsliv. In addition, Tang has donated around NOK 5 billion to the AKO Foundation, which distributes money for charitable purposes.

Great Russian investment

All four funds invest in different industries and markets. The Ennismore Fund, for example, invests primarily in small European companies. The largest investment, at almost £ 25 million, was in “The Russian Prosperity Fund”. The fund is registered in the Cayman Islands.

According to Bloomberg, the fund invests in Russian stocks. 70 percent is invested in larger, better-known Russian companies.

– I have previously invested in the Russian Prosperity Fund. The shares of this fund have already been redeemed, Nicolai Tangen writes in an email to VG.

The answer is communicated by Norges Bank.

– What do you think of having made such investments in the past, given your new role as Manager of the Norwegian Petroleum Fund in Norway, where it has been an declared objective to work against tax havens in foreign policy?

– This is a Cayman Islands registered fund online with around 60 percent of this fund type in Europe, writes Tangen.

Stock agreement

Norges Bank is working on the details of a deal to clarify what will happen to Tang’s assets when he plans to take over as administrator of the oil fund in September.

In the response letter to the Supervisory Board, Norges Bank wrote that a recommendation on how to handle potential conflicts of interest will be presented to the Executive Council at a meeting on May 27.

Then two months have passed since he was launched as the new head of the Petroleum Fund.

Given for the foundation

Norges Bank writes that management of Tang’s stake in AKO funds is assigned to a management company that he himself appoints. According to the bank, investments are “freezing”.

This means that no shares will be bought or sold in the funds during the period of employment.

– Some of your investments will be transferred to the AKO Foundation instead of being redeemed. What is the reason for this and can it create unfortunate bonuses for you as an oil fund manager?

– These are investments that cannot be redeemed because they have longer maturities (as mentioned in Taylor Wessing’s letter), and are awarded to the Foundation precisely so that there are no bonds, Tangen writes.

At year-end, investments in «Runa Capital Fund I L.P. Investment “and” Northzone IX LP “worth NOK 250 million.