INVL Asset Management, one of Lithuania’s leading asset management companies, has launched a new closed-end mutual fund intended for informed investors: the INVL Baltic Sea Growth Capital Fund. The fund began operations on 23 October after the Bank of Lithuania approved its rules.
The new fund will invest in the INVL Baltic Sea Growth Fund which was established in June this year and will make it possible for natural persons who meet the requirements for informed investors to also invest indirectly in that fund. The new fund’s units will be distributed by the financial brokerage firm INVL Finasta.
“By creating this new fund we’re giving not just professional but also informed investors a chance to invest in the Baltic region’s growing businesses. We hope they’ll welcome the opportunity to invest in this region and contribute to its businesses’ development,” said Vytautas Plunksnis, the Head of Private Equity at INVL Asset Management. He said the new fund would join investments in the INVL Baltic Sea Growth Fund which are now being formed.
The minimum investment in the INVL Baltic Sea Growth Capital Fund will be EUR 125 000. The fund has a target size of EUR 15 million and a maximum size of EUR 40 million. The newly established fund is a subfund of the INVL Alternative Assets Umbrella Fund, a closed-end umbrella fund intended for informed investors.
Launched in June, the INVL Baltic Sea Growth Fund is intended for professional investors and is focused on growth capital, buyout, and “buy and build” investments, and will seek to form a diversified portfolio of Baltic Sea region companies. This fund’s target size after the distribution of its investment units is EUR 200 million and the maximum size is EUR 300 million.
The INVL Baltic Sea Growth Fundforesees investing in medium-size companies with an attractive risk-return ratio, providing them with capital for further growth. In investing, it will focus on acquiring controlling or significant minority stakes and will take an active role in the management of companies, aiming to significantly increase capital value over the long term.
It was announced in the first half of October that the INVL Baltic Sea Growth Fund is acquiring a 70% stake in the InMedica chain of primary health care centres. The share-purchase agreement was signed by BSGF Sanus. Completion of the transaction, whose value has not been disclosed, will be possible after the permission of the Competition Council is obtained and other terms of the agreement are fulfilled. BSGF Sanus is currently 100% owned by Invalda INVL. Once the INVL Baltic Sea Growth Fund begins its investment activity, it is planned that the ownership of BSGF Sanus will be transferred to the fund at acquisition cost.
It is envisaged that the INVL Baltic Sea Growth Fund’s overall portfolio may comprise 8-12 investments. The planned life of the fund is 10 years from the initial closing.
INVL Asset Management, which is part of the Invalda INVL group, manages 2nd and 3rd pillar pension funds and mutual funds as well as alternative investments and individual portfolios. Companies in the Invalda INVL group manage total assets of more than EUR 650 million entrusted to them by over 190 000 clients in Lithuania and Latvia as well as international investors.