The $109 Billion Fund Behind Novo Says US Renewables Are Now ‘Much More Attractive’

Kasim Kutay, chief executive officer of Novo Holdings A/S, following a Bloomberg Television interview in London, UK, on Wednesday, April 2, 2025. 'We're in unchartered waters because tariffs have not been applicable to pharmaceutical products for decades,' Kutay said. Photographer: Chris Ratcliffe/Bloomberg Photo by Chris Ratcliffe /Bloomberg

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(Bloomberg) — After curbing allocations earlier this year, the $109 billion investment fund behind Novo Nordisk A/S is back in full swing and looking for opportunities in a US market that’s now attractively priced, according to its chief executive.

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Novo Holdings, which focuses its investments on sustainable ventures such as life sciences and renewable energy, has been waiting for clarity on “where are tariffs settling, where is inflation, and very importantly, where are interest rates,” CEO Kasim Kutay said in an interview. On interest rates, it now seems clear that “we are in an era of higher for longer” in the US, he said.

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While a world with higher borrowing costs comes with its own challenges, there’s a sense that the extreme volatility gripping markets earlier in the year has subsided, so “we’re back to our normal allocations now,” Kutay said. “We just wanted to see how the dust settles and have a better read on the direction of a few things, and I think we have that.”

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Kutay says the sense of comparative stability has opened the door for Novo Holdings to look for opportunities in US renewables. That’s despite the Trump administration’s anti-green policies, which have led some sustainable investors to turn their backs on US assets. A big part of Novo Holdings’ interest rests in America’s ongoing investments in all the infrastructure needed to support artificial intelligence, Kutay said.

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The US is “very thirsty for energy,” which makes it “a very attractive market” and one that is “still full of opportunities on the renewable side,” he said. “There are issues,” Kutay added, “but pricing is much more attractive than where it was. Valuation is much more attractive than where it was.” 

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Kutay said Novo Holdings needed to pause investments earlier this year, because “we were in the eye of the storm with a lot of uncertainty.”

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He says the decision to resume allocations isn’t limited to the US. Novo Holdings is “very excited about the prospects for Europe,” he said, citing what he described as the region’s talent, innovation and the “robustness” of its institutions.

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At the same time, Europe still needs to tackle the fragmentation that Kutay says is weighing on its ability to develop the bloc’s common market. If it doesn’t, smaller groupings within the European Union might start to establish themselves, he said.

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“I think what’s going to end up happening is really just these blocs of coalitions of the willing,” he said. “You may end up with some kind of capital markets union in the Nordics. Maybe the Benelux joins and then people see the success of that.”

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Regulation and the “cultural mindset” mean that while there’s plenty of capital in Europe, “it’s invested in a very conservative manner, both by individuals, but by our insurance companies and our pension funds,” Kutay said. 

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Novo Holdings, which manages the assets of the Novo Nordisk Foundation, deployed €5.7 billion ($6.6 billion) in 2025 across all its portfolios, which collectively sit on more than 170 privately and publicly held companies. 

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Kutay said the investor is also looking to Canada. It “probably will” invest more as the government of Mark Carney continues to develop policies designed to strengthen its economy, he said. 

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The assumption is that “things will develop in the pipeline and we will see opportunities,” Kutay said.

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