Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) has committed 20 million as an anchor investor to the SG Capital Baltic Private Credit Fund, managed by Latvia-based SG Capital Partners AIFP. This fund is specifically designed to address the financing challenges faced by small and medium-sized enterprises (SMEs) and small mid-caps in the Baltic region, particularly in Estonia, Latvia, and Lithuania. The initiative aims to raise a total of 100 million from a diverse pool of institutional investors to support businesses that struggle to secure adequate bank lending.
The tailored solution provided by the SG Capital Baltic Private Credit Fund includes offering senior financing primarily in the form of loans and bonds. This funding will assist SMEs with critical needs such as acquisitions, capital expenditures, and working capital. The fund is classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), with a commitment to allocate 15% of its investments towards climate action and environmental sustainability.
The EIF's investment is pivotal in bridging a significant funding gap in the region, fostering economic growth and innovation. The fund is expected to have its first closing in April 2025, and it represents a strategic move to empower Baltic businesses to pursue sustainable and profitable growth through private credit solutions, which are characterized by their flexibility and speed, especially when traditional bank financing is unavailable.