Alfa Framtak lands €30 million European commitment for Icelandic private equity fund

• The European Investment Fund becomes cornerstone investor in AF3, Alfa Framtak’s third private equity fund.
• AF3 will primarily invest in Icelandic SMEs and Mid-Caps focused on driving growth, innovation, and improvements in areas such as sustainability, decarbonisation, and digitalisation.
• The investment is backed by the European Commission’s InvestEU initiative and is the first private equity commitment in Iceland.

The European Investment Fund (EIF) has signed a €30 million commitment to Alfa Framtak’s new private equity fund, assisting the fund manager in reaching first close at ISK 22 billion (€145 million) on its “AF3” fund. The EIF’s investment marks the institution’s first support for a private equity fund in Iceland, and is support under the European Commission’s InvestEU programme. At full deployment, AF3 is expected to invest in 8 to 12 Icelandic companies. In line with Alfa Framtak’s track-record, the fund will support companies across a range of sectors including industrial decarbonisation, environmental solutions, digital transformation, and the blue economy.

At a signature ceremony in Reykjavík, CEO Gunnar Páll Tryggvason, commented: "It is a major recognition to welcome EIF as a shareholder. Their commitment marks a milestone for our firm and likely represents the first foreign investment in an Icelandic private equity fund. This demonstrates growing confidence in the Icelandic economy and enhances the country’s long-term competitiveness."

“This is already the fourth InvestEU project in Iceland, building on a long tradition of EU-guaranteed funding for Icelandic projects.” said EIF Deputy Chief Executive Merete Clausen. “Iceland has a special place in Europe and I’m glad that we are expanding the EIF’s investments in the country, aligned with our strategic goal of supporting ambitious entrepreneurs that are driving the digital and green transitions.”

EU Ambassador to Iceland Clara Ganslandt added: "The European Union has long been a global leader in environmental and climate action, and we share with Iceland a deep commitment to sustainability and innovation in the fight against climate change. One of the EU’s key goals is to support pioneering firms that are creating real social and environmental impact—and that’s exactly what this investment in Alfa Framtak's AF3 fund represents. I'm proud that this funding will support dozens of Icelandic companies working in areas like environmental sustainability and the blue economy. I look forward to seeing the positive results of this first-of-its-kind investment within the Icelandic economy."

AF3 will continue Alfa Framtak’s proven strategy of acquiring large positions in Icelandic SMEs and Mid-Caps, bringing capital, operational insight, and transformation expertise. With a strong track record in traditional buyouts, growth capital, and special situations, the fund is designed to be a value creation partner for business owners and management teams. While the fund’s primary focus is on building resilient, high-performing companies—through succession planning, business model innovation, or strategic repositioning—ESG factors remain central to Alfa Framtak’s investment philosophy. AF3 will support portfolio companies in industrial decarbonisation, environmental sustainability, and digital transformation, in addition to pursuing opportunities in sectors such as the blue economy, industrial services, and export-oriented businesses.

Background information:

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. Since its first project in Norway, in 1974, the EIB Group has made available over €6 billion to support projects in the EFTA region, about €5 billion through the EIB and €1,1 billion through the EIF. On the whole, in Iceland alone the EIB Group has made available nearly €1.3 billion euros throughout the years between EIB and EIF financing.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

Alfa Framtak ehf. is an Icelandic private equity firm, fully owned by its partners and regulated by the Central Bank of Iceland. The firm currently manages three funds focused exclusively on the Icelandic market, with a strategy centered on acquiring majority stakes in established SMEs and Mid-Caps with strong fundamentals and clear potential for transformation and growth. Alfa Framtak takes a hands-on ownership approach, combining operational expertise with disciplined investment processes to build resilient, competitive businesses. The firm’s track record in value creation—across traditional buyouts, growth capital, and special situations—along with its commitment to responsible investment and support for sectors such as industrial innovation, digitalisation, and the blue economy, were key factors in attracting the European Investment Fund as a cornerstone investor in its third fund.

Press contact:

EIB Group: Tim Smit | +352 691 286 423 | t.smit@eib.org

Alfa Framtak: Anna Þorbjörg Jónsdóttir  | +354 832 4030  | anna@alfaframtak.is

EU Embassy to Iceland: Viktor V. Stefánsson | +354 864 3386 | Viktor.STEFANSSON@eeas.europa.eu