INVL Baltic Sea Growth Fund (“the Fund”), the largest private equity investment fund for the Baltic region, managed by one of Lithuania’s leading asset management companies INVL Asset Management, has successfully completed an intermediate closing (second closing), reaching a total amount of €141.861mn. The Fund announced first closing in February 2019 at €106 mn.
Since first close, the Fund has already invested in two companies within the healthcare and engineering sectors, while also having a very advanced deal pipeline, providing investors with good visibility on funds being deployed within shorter investment period. It is expected that the portfolio of the Fund will comprise 8-12 investments in total.
“We are delighted with the successful completion of this intermediate closing, which was intended for investors who are familiar with the region and Invalda INVL in general. Our current priority is the prudent deployment of this capital and we are actively working on a number of significant transactions while also analysing opportunities that comply with the Fund’s strategy on an on-going basis” said Darius Šulnis, the Managing Partner of INVL Baltic Sea Growth Fund.
“INVL Baltic Sea Growth Fund is on track to reach its target size of €200mn and will complete a final closing in 2020. We very much value the vote of confidence and trust given to us thus far as we work towards reaching our target size for the Fund while also deploying the capital in mid-sized, attractive risk-and-return profile companies”, said Deimantė Korsakaitė, the Executive Partner of INVL Baltic Sea Growth Fund.
INVL Baltic Sea Growth Fund brings together a diversified panel of investors, including public investors (European Investment Fund (EIF) being the anchor investor), Baltic region institutional investors (Estonia’s LHV pension funds, INVL pension funds), private and corporate investors.
At first close, the EIF, which is a part of the European Investment Bank, committed €30mn with the support of the European Fund for Strategic Investments, a key element of the Investment Plan for Europe (or the ‘Junker Plan’), 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.
In order to align the interests of investors and asset managers as best possible, Invalda INVL and all the members of the Fund’s investment committee (Partners) have committed to the Fund with amounts that were significant to them totaling €20mn at first close.
The Fund is focused on the Baltic States and the neighbouring regions of Poland, Scandinavia and Central Europe. It targets majority or significant minority stakes in businesses while also actively participating in the management of investments and long-term increase in capital value.
The Fund will seek to assemble a diversified portfolio of Baltic Sea based companies, targeting deals with a ticket size of €10mn to €30mn that possess high growth potential and the ability to compete on a truly global basis (the Fund will also offer co-investment opportunities). The Fund will be focusing on growth capital, buyout, and “buy and build” investments. The expected life cycle of the Fund is 10 years from the point of first closing.
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’s companies with more than €900mn 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.