INVL Baltic Sea Growth Fund

The fund seeks to assemble a diversified portfolio of Baltic Sea region based companies and focuses on growth capital, buyout, and "buy and build" investments.

 
INVL Baltic Sea Growth Fund with its total size of EUR 165 million is the largest private equity investment fund for the Baltic region. The fund seeks to invest in medium-size companies with an attractive risk-return ratio. It focuses on acquiring controlling or significant minority stakes and will take an active role in the management of target companies, aiming to significantly increase their value over the long run. INVL Baltic Sea Growth Fund may have 8-12 investments in its portfolio. The expected term of the fund is 10 years from the initial closing (February 2019).

The fund seeks to assemble a diversified portfolio investing EUR 10 million to EUR 30 million in mature companies that showcase high growth potential and the ability to compete on a truly global basis. INVL Baltic Sea Growth Fund is focused on the Baltic States and the neighbouring regions of Poland, Scandinavia and Central Europe specifically, also can invest in any EU country. The fund focuses on growth capital, buyout, and “buy and build” investments: larger than those that majority of private equity players in the Baltic countries undertake, but smaller than those that could attract attention of the larger international private equity and strategic investors.

The fund is intended for professional investors. Its final close was announced in February 2020. INVL Baltic Sea Growth Fund brings together a diversified panel of investors, including public investors (European Investment Fund (“the EIF”), Baltic region institutional investors (Estonia’s LHV pension funds, INVL pension funds), private and corporate investors.

The anchor investor of INVL Baltic Sea Growth Fund is EIF. The EIF, which is a part of the European Investment Bank, committed EUR 30 million 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. This aims to increase capital investment in high growth potential small and medium-sized enterprises in the Baltic States.

To ensure ultimate alignment of investors’ and asset managers’ interests, Invalda INVL and all the members of the investment committee (partners) have committed to make significant investments in the fund. Invalda INVL in total committed to invest EUR 20.1 million.

The fund’s team capitalises on the experience that Invalda INVL has built up since 1991 in acquiring, reorganizing and growing leading companies in this region. The historical internal rate of return (IRR) on transactions that Invalda INVL has conducted in line with the new fund’s strategy on average was 27%.

Investment decisions are made by an investment committee, composed of all the fund partners. It is seen as one of the strongest private equity teams in the Baltics, with solid experience. Most of its members have been working together for more than a decade: Alvydas Banys, Darius Šulnis, Ashwin Roy (a former partner at the U.S. venture capital firm CVCI who in the Baltic countries carried out investments in Sanitas, Iki, and Tallink), Deimantė Korsakaitė, Vidas Venckus, Nerijus Drobavičius, and Vytautas Plunksnis. The team’s combined experience includes EUR 500 million invested and EUR 1.2 billion returned to investors.

More information about INVL Baltic Sea Growth Fund - here.


 

When investing, you assume the investment risk. Past results do not guarantee future performance. Investments can be both profitable and loss-making: You may recover less than you invested. The management company does not guarantee the profitability of investments.

The INVL Baltic Sea Growth Fund is intended for professional investors, i.e., for persons who meet the criteria for a suitable transaction party or professional client set out in the Republic of Lithuania Law on Markets in Financial Instruments.

Only persons who meet the criteria for a professional investor may acquire units of this fund, and investors’ right to demand redemption of investment units they hold by this closed-end fund is restricted.

Before making a decision to invest, you should on your own or with the help of investment advisors assess the selected fund’s investment strategy, applicable fees, and all investment-related risks, and carefully read the fund’s rules, information memorandum, and other information associated with the distribution of this collective investment undertaking. You can obtain these documents, if you meet the above-specified requirements for investors of the fund, by contacting INVL Asset Management UAB.

All the information presented is of a promotional nature and cannot be construed as a recommendation, offer or invitation to invest in the funds managed by INVL Asset Management. The information provided cannot be the basis for any subsequently concluded agreement. Although the content of this information of a promotional nature is based on sources considered to be reliable, the company is not responsible for inaccuracies or changes in the information, or for losses that may arise when investments are based on this information.