Largest ever Baltic private equity fund ready to invest in new regional champions

Seeking to assemble a diversified portfolio of Baltic-based companies, targeting deals with a ticket size of 10 million euros to 30 million euros showcasing high growth potential and the ability to compete on a truly global basis, the INVL Baltic Sea Growth Fund, the largest private equity investment fund in the Baltic region, has successfully completed its final close reaching a total of 164.7 million euros.

“We are delighted to reach this final close having received strong support from our investor base,” said Darius Šulnis, managing partner of the fund. “We took the decision not to extend the placement of the fund given that the amount raised is sufficient to implement our investment strategy and deliver strong returns for our investors. We are actively working on a number of new investments that will ultimately allow us to leverage on our ability to execute complex deals with promising growth prospects.”

The fund will focus on growth capital, buyout, and buy and build investments. It is expected that the portfolio of the fund will comprise eight-12 investments in total. Since the first close, the fund has invested in two companies within the healthcare and civil engineering sectors respectively.

“We very much value the vote of confidence and trust given to us during this process that has resulted in closing the largest private equity fund in the Baltic region, having the support of the European Investment Fund (EIF) and the most experienced Baltic institutional, corporate investors and high net-worth individuals who have good knowledge of the Baltics market and opportunities that it provides,” said Deimantė Korsakaitė, executive partner of the INVL Baltic Sea Growth Fund.

According to Korsakaitė, a large majority of investors have already confirmed an interest in co-investing with the fund that will allow the management team to consider equity investments of up to 100 million euros.

The INVL Baltic Sea Growth Fund brings together a diversified panel of investors, including public investors (the EIF being the anchor investor), Baltic region institutional investors (Estonia’s LHV pension funds, INVL pension funds), private and corporate investors.

The fund is focused on the Baltic States and the neighbouring regions of Poland, Scandinavia and Central Europe specifically. It targets majority or significant minority stakes in businesses where the opportunity exists to become ‘regional champions’ while also actively participating in the management of investments and long-term increase in capital value.

The EIF, which is a part of the European Investment Bank, committed 30 million with the support of the European Fund for Strategic Investments, a key element of the Investment Plan for Europe, as well as allocating resources from the Baltic Innovation Fund, the “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia respectively, which aims to increase capital investment in high growth potential small and medium-sized enterprises in the Baltic States.

INVL Asset Management is part of the Invalda INVL, one of the leading asset management groups in the Baltic region. The group’s companies manage pension and mutual funds, alternative investments, individual portfolios, private equity assets, and other financial instruments.

Over 200,000 clients in Lithuania and Latvia and international investors have entrusted the group with more than one billion euros of assets under management. Active since 1991 and with a solid track record, Invalda INVL boasts 28 years worth of experience in managing private equity assets in the Baltic countries and CEE landscape while developing companies into best-in-class market leaders.