BaltCap terminated the contract with BaltCap Infrastructure Fund Partner Šarunas Stepukonis and contacted the Lithuanian authorities after the Fund’s financial directors discovered misconduct. Simonas Gustainis, one of the four Managing Partners of BaltCap, has assumed the role and has been appointed the head of BaltCap Infrastructure strategy.
The change in the leadership of the BaltCap Infrastructure Fund is part of a set of measures taken to address the misconduct, which came to light in the Fund’s portfolio companies, where Šarunas Stepukonis was a member of the management board. The misconduct was revealed during a regular review by the Fund’s financial directors, and it has resulted in a financial loss. The loss is finite, and the misconduct is isolated to one person and to BaltCap Infrastructure Fund – specifically to some of its portfolio companies – and does not affect the performance of any other BaltCap-managed funds.
“We engaged an external consultant to perform a special audit and contacted the Lithuanian authorities. In addition to finding out exactly why and how this took place, we have already started implementing a series of steps to strengthen the management and control procedures to ensure nothing similar can happen again. Integrity and ethics have been the cornerstones of our culture and business conduct, and we take this matter very seriously, we will compensate the losses to the Fund. We informed all our investors and other key stakeholders and have included them in our efforts to carve out a clear path forward, ” said Simonas Gustainis, one of the Managing Partners of BaltCap.