Investment & Fund Management
BaltCap has established a new regional
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BaltCap has established a new regional fund with a target size of EUR 50 million aimed at providing growth capital to small and medium-sized enterprises (SMEs) across the Baltic region. The fund specifically addresses the challenge of insufficient growth capital for SMEs, which is critical for maintaining competitiveness and increasing productivity in Estonia, Latvia, and Lithuania. Kornelijus ?elutka, a partner at BaltCap, highlighted that total private equity investments in the region are only 50% of the EU average, indicating a significant gap in available funding for SMEs.
The fund is a collaborative effort involving BaltCap, the European Investment Fund (EIF) through the Baltic Innovation Fund, and local pension funds. This partnership enables local institutions to invest in Baltic companies, thereby strengthening their equity base. The fund aims to support local and pan-Baltic companies in creating new products and services, accelerating organic growth, or acquiring businesses to enhance their market position.
As of now, BaltCap has secured commitments exceeding 40 million from institutional investors, including the Baltic Innovation Fund, Swedbank, and DNB pension funds. The establishment of this fund marks a continuation of BaltCap's growth capital strategy, which began with the launch of its first growth strategy fund in 2001. The fund is expected to significantly contribute to the development of the private equity and venture capital market in the Baltic States, addressing the pressing need for growth capital in the region.