Fund Overview

Investment Focus/Criteria

Geographic Focus

Primarily Baltic Sea region countries, opportunistically selected investments in other EU countries

Industries

Industry agnostic and diversified

Special focus on manufacturing, food processing industries, export driven and fragmented industries

Main Focus

Late stage SME, Small-Cap and Mid-Cap companies

Equity ticket size

€ 10 million –
€ 30 million

Larger deals with co-investment

Key Characteristics of Target Companies

Prospective market leaders / regional champions.
Opportunities for structural transformation and operational improvements.
Opportunities for regional cross border expansion and growth acceleration.
Visibility of buy & build strategy implementation.
Market growth.

Attractions of the Baltic States

Good opportunity for shrewd allocators, when viewed in the context of increasingly crowded alternative investment markets in the US, Western Europe and Asia.

Emerging market growth with Western European risk profile.
Dynamic, transparent and resilient countries.
Among the fastest growing economies in the EU with growth rates significantly above the EU average.
Small, but open economies, having some of the highest ratios of exports-to-GDP in the world.
Prudent fiscal policies, resulting in some of the lowest ratios of public debt to GDP in Europe.
Strong resilience to economic shocks as shown by experience of Global Financial Crisis.
Strong entrepreneurship combined with excellent business climate, as exemplified by the World Bank Doing Business ranking (2020), where Lithuania ranks 11th, Estonia ranks 18th, Latvia 19th.
Strong strategic buyer interest.
Lack of private equity competition, with good supply of quality deal flow.

Investment Committee members

Alvydas Banys

Ashwin Roy

Darius Šulnis

Deimantė Korsakaitė

Nerijus Drobavičius

Vidas Venckus

Vytautas Plunksnis

For more information about the Management Team please follow the LINK

Strategy and Approach

We build LEADERS.

We back growing businesses with potential to become leading regional players in the Baltic Sea region and further afield.

Our aim is broadly to combine (i) Baltic human capital and leadership, with (ii) CEE market scale, technical expertise and competitive advantage and (iii) German / Nordic marketing front end, design, innovation and branding.

Starting from the Baltics, as a stepping stone, we strive to develop regional market leaders.

We seek control positions either by ourselves or with like-minded partners, enshrined in legal documentation. We insist on being able to make changes to strategy, management teams and being able to control our destiny when it comes to an exit.

We work in close, long-term and fully-aligned partnerships with our management teams.

Businesses we invest in will have the majority of the following characteristics:

A sound business strategy and strong fundamentals;
An attractive industry outlook;
Strong market position and/or product portfolio;
Products that are not subject to rapid technological change or obsolescence;
Growth potential in cash flows and earnings;
Scalability of operations through organic growth, add-on acquisitions and market consolidation opportunities;
A history of positive operating cash flow;
Resilience and ability to weather instability;
Potential to benefit from active value creation.

We specialise in complex transactions: we have expertise in and can assist in helping businesses that are hampered by shareholder issues or facing temporary challenges. We are fast, flexible and ready to provide customized solutions tailored to the needs of a business and its current owners.

We always seek value-accreting acquisition opportunities for our portfolio companies, irrespective of their size. We will make small bolt-on acquisitions to consolidate or extend business lines or geographic coverage. In addition, through the INVL Baltic Sea Growth Fund’s own equity as well as that of its co-investors, we have the ability to execute large transformative acquisitions, as our history and track record proves.

Contact us at bsgf@invl.com

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