The Financial Supervisory Authority of Norway has published a supervisory report on Njord Alternative Investments AS, centred on its management of the alternative investment fund Kjeller Eiendomsinvest AS. The authority found serious weaknesses in the firm’s governance, policies and processes for managing alternative investment funds, and concluded that the fund was established on terms that materially departed from the prospectus without the critical and independent assessment expected of a manager acting in investors’ best interests. Despite these findings, the case was closed without administrative sanctions in light of the time elapsed and the firm’s ongoing remediation work. The report highlights deficiencies in fund establishment, conflict of interest management, risk management, valuation and liquidity management under the AIF framework. The property acquisition was completed in March 2023 using a materially different financing structure from that described in the prospectus, including distributor participation, seller participation and seller credit, while investors were not informed of the changed terms before completion or asked whether they wished to maintain their subscriptions. The authority also found that the firm had not documented adequate reassessments of the project, financing, profitability or property values in changed market conditions, and had not demonstrated sufficient independence from group companies despite issues raised in a 2022 inspection. In addition, valuation procedures were not fund-specific, risk reporting to the board was sporadic and incomplete, and liquidity stress testing had been carried out only once since launch and did not meet expected standards. The authority said it is essential that the firm operationalise its updated routines and improve its decision-making processes. The board must ensure reporting is sufficient to assess whether the new procedures are being implemented effectively.
Norwegian Finanstilsynet 2026-04-27
Financial Supervisory Authority of Norway identifies serious shortcomings at Njord Alternative Investments and closes the case without administrative sanctions
The Financial Supervisory Authority of Norway published a supervisory report on Njord Alternative Investments AS, identifying serious weaknesses in governance, conflicts of interest, risk management, valuation and liquidity management for the alternative investment fund Kjeller Eiendomsinvest AS. The fund was established on terms that materially departed from the prospectus, including a different financing structure and lack of investor notification. The manager also failed to demonstrate sufficient independence and project reassessment in changed market conditions. The case was closed without administrative sanctions given elapsed time and ongoing remediation, but the authority expects the firm to implement updated routines and strengthen board-level oversight.