Sweden’s development finance institution, Swedfund, will make commitments to private equity only on condition that funds are domiciled in their home market, according to its new chief executive. The comments come after the firm ceased making third-party fund commitments three years ago following concerns about the tax treatment of funds offshore.

According to Anders Craft, acting chief executive at Swedfund, said that the development institution had ceased investing in most private equity funds three years ago "due to concerns about the tax treatment of funds domiciliation". The group will now only invest in funds domiciled "in countries where our investee companies are".