BaltCap closes the third buyout fund at record size 

  • BaltCap Private Equity Fund III (“BPEF III”) held the final close at hard cap, raising €177 million (incl. co-investment facility) – the largest Baltic private equity fund 
  • BPEF III contributes to further integration of the New Nordics having the mandate to invest both in the Baltics and the Nordics  
  • BPEF III commits to sustainability – makes positive environmental and social impact top priority across investment portfolio 

BaltCap Private Equity Fund III (BPEF III) aims to make up to 10 platform investments in the New Nordics and continues the proven buy-and-build strategy of its predecessor funds. BPEF III targets mature enterprises in the Baltics and Nordics with enterprise values between €10 to €100 million.

The support of BaltCap’s longstanding investors was complemented by a significant number of new investors encompassing top-tier international institutional investors, fund-of-funds and family offices. For the first time in BaltCap’s buyout funds history, high-net-worth individuals committed to the fund.

“We are proud of the performance of our BPEF II fund portfolio and believe that there is value in the New Nordic region we have yet to unlock. We are grateful for the strong vote of confidence from our investors and welcome fund-of-funds, pension funds and family offices as new investors. We are excited to continue creating value for our existing and new partners with grit and confidence,” commented Martin Kõdar, Managing Partner at BaltCap.

BaltCap’s strategy is to partner with top management teams and transform local companies into international business champions. “Closing BPEF III gives us a fresh mandate to further our mission and take New Nordic companies to the global market. The successful closing marks another milestone in our growth story, manifesting BaltCap’s position as the largest private equity firm in the Baltics,” Simonas Gustainis, Managing Partner at BaltCap comments.

Peeter Saks, Managing Partner at BaltCap, emphasizes that BPEF III broadens the scope of BaltCap target markets and in addition to the Baltics focuses also on Finnish and Swedish companies with a Baltic nexus.

“The Nordic and Baltic economies are increasingly forming an integrated market, the New Nordics. It is a technology-driven and synergy-providing business environment that opens up innovative business opportunities. BPEF III seeks to further facilitate business integration in the New Nordics,” Saks explained.

BPEF III is committed to make investments with a positive impact on environmental, social and governance matters. BaltCap has prioritized building sustainable businesses since its founding in 1995.  ESG factors are fully integrated into the operations of BaltCap and its portfolio companies. BaltCap has a 10-year track record of reporting ESG performance.

About BaltCap Private Equity Fund III 

BaltCap Private Equity Fund III (BPEF III) invests in innovative companies in the Baltic and Nordic countries following buy-and-build strategy. The investors of BPEF III include the European Investment Fund (EIF), the European Bank for Reconstruction & Development (EBRD), the Nordic Environment Finance Corporation (NEFCO), LHV pension funds, SEB pension funds from Estonia, Latvia and Lithuania, eQ Asset Management and family offices. The EIF’s investment is made on behalf of Baltic Innovation Fund 2, an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and the EIF, as well as benefits from the financial backing of the European Union under the European Fund for Strategic Investments (“EFSI”) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

About BaltCap 
BaltCap strives to build the New Nordic companies into internationally recognized business champions. We partner with top management teams and entrepreneurs, helping them to achieve their ambitions and deliver transformational growth, both regionally and internationally. Our approach has enabled BaltCap to become the most experienced and largest private equity investor dedicated to the Baltic region, covering buyout, growth capital, infrastructure and venture capital. Since our foundation in 1995, BaltCap has raised multiple generations of private equity funds with aggregate capital of over €650 million backed by institutional investors. We have invested in about 100 companies across a wide range of industry sectors and stages of development. Our team of 34 investment professionals covers the region through 6 offices in Tallinn, Riga, Vilnius, Warsaw, Helsinki and Stockholm.

Additional information:

Martin Kõdar
Managing Partner
+372 665 0280