BaltCap signs an agreement with European Investment Fund to create EUR 20 million venture capital fund for Lithuanian SMEs
BaltCap has successfully attracted private fundraising for the first ever venture capital fund to invest into Lithuanian SMEs. This forms part of the EIF managed JEREMIE Holding Fund initiative in Lithuania.
This venture capital fund is a key part of the Holding Fund’s activity and will result in EUR 20 million being invested into Lithuanian micro, small and medium enterprises. The Fund will focus on expansion financing of SMEs with established operations and growth potential taking equity stakes of up to EUR 3 million with the aim to build a diversified portfolio of 7-15 investments selected by the professional and committed management team of BaltCap.
The EUR 20 million Fund consists of EUR 14 million provided by the EIF managed JEREMIE Holding Fund and EUR 6 million raised from leading institutional investors, including SEB Venture Capital, LHV Asset Management, Swedbank Asset Management and DnB NORD Asset Management.
Richard Pelly, Chief Executive of the European Investment Fund stated, “This is the first ever risk capital fund in Lithuania established with the participation of EU Structural Funds and as a result of support from the Ministry of Economy. This initiative will finance high potential Lithuanian SMEs in a new way, providing an added value both by strengthening their capital bases but also developing a new generation of entrepreneurial leaders in the market.”
According to the Minister of Economy Dainius Kreivys, this is the first time when state resources are used to promote risk capital investments into companies, and this should stimulate risk capital market in Lithuania. Moreover, it is an important financial instrument for innovative high growth potential companies.
“We are very enthusiastic about the development opportunities which Lithuania SME Fund shall provide to Lithuanian businesses that are working hard to grow after economic downturn. Moreover, active participation of solid private investors in this unique public and private partnership is testament to the commercial credibility of the instrument as well as a strong signal that private investors start actively investing in Lithuania again.” – said Simonas Gustainis, Partner of BaltCap.
For additional information please see www.baltcap.com or contact:
Tel: +370 5 254 6713
Tel: +370 5 254 6983