Investment & Fund Management

The Baltic Innovation Fund (BIF) was launched to address the specific challenge of limited access to private equity and venture capital for small and medium-sized enterprises (SMEs) in the Baltic States. The initiative, spearheaded by the European Investment Fund (EIF) in collaboration with national agencies from Lithuania, Latvia, and Estonia, aimed to create a robust investment framework that would stimulate growth in the region's SMEs. The fund was established with a total investment of EUR 100 million, comprising EUR 40 million from the EIF and EUR 20 million each from the national agencies: INVEGA (Lithuania), the Latvian Guarantee Agency (LGA), and KredEx (Estonia).

The tailored solution involved a 'fund of funds' approach, which would enable the BIF to invest in private equity and venture capital funds focused on high-growth SMEs in the Baltic region. This strategy was designed to attract additional private finance, with each fund manager expected to secure an equivalent amount of private investment, effectively doubling the capital available for SMEs. The initiative was set to finance over 50 growth-oriented enterprises over a four-year period, fostering a pan-Baltic investment landscape.

The expected outcomes of the Baltic Innovation Fund included enhanced accessibility to capital for SMEs, which would not only support their growth but also contribute to job creation and increased economic competitiveness in the Baltic States. The collaborative nature of the fund, involving all three Baltic governments and the EIF, was highlighted as a unique model of cooperation that could lead to greater levels of private investment in the region, thereby strengthening the local venture capital ecosystem. The investment process was scheduled to commence in 2013, marking a significant step towards revitalizing the Baltic private equity and venture capital markets.