Why being ruthless about reputation matters

“Lose money and I can forgive you, but lose even a shred of reputation and I will be ruthless.” Those were
the words of Warren Buffett when he stepped in as interim chairman at Salomon Brothers, the U.S.
investment bank that was hit by a trading scandal in 1991 that nearly sank the firm and tarnished Wall
Street’s reputation.

Financial services operate primarily on integrity and trust, so any loss of reputation can have a hugely detrimental
impact on individual companies and the industry at large. It is no different for private equity than any other part
of the financial sector, and it’s the same now as it was almost three decades ago. Indeed, reputational risks today
stem from a huge range of sources – not only financial misconduct, but also environmental damage, sexual
harassment or simply flagrant disregard for transparency.

Acting with integrity is at the heart of Invest Europe’s Code of Conduct, and it’s a fundamental building block of
trust between fund managers and investors – as well as portfolio companies, policymakers and the general public.
Of course, private equity has to operate within the confines of regulation, such as the Alternative Investment Fund
Managers Directive, and detailed agreements between limited partners and general partners. But no matter how
strict the rules, trust – based on a track record of clarity, reliability, honesty and a high standard of both personal
and professional behaviour – is essential.
Like many investors across Europe, Blue Sky Group – a Dutch pension fund administrator, managing €22 billion
for around 100,000 scheme participants – aims to maintain the highest standards of integrity before its clients, and
demands that all employees and external managers abide by the same ethos. By the same token, BaltCap, a private
equity firm focused on the Baltic States, has its own Code of Responsible Behaviour, which it expects all its
portfolio companies to adhere to.

Being on the same page is essential. Private equity portfolio companies employ some eight million people across
Europe and often play significant roles in the local and international economy. Any misconduct at a portfolio
company will have a negative impact on the general partner, as well as the limited partner, who is trustee for a
large number of savers and therefore accountable for everything decision in their names.

As individual investors and managers we can make our own rules. We can incorporate as much as possible into
legal contracts and monitor those agreements closely. However, we can’t govern or influence the whole industry
alone. That’s why it is essential that organizations like Invest Europe stand up for the promotion of integrity and
transparency within private equity, and champion private investment in general. Collective action among Invest
Europe members is crucial for the development of best practice, which in turn is a very powerful tool for fostering
trust.

Few would dispute that private equity’s reputation has been built on making money for investors, thanks in large
part to smart investment and operational skills. By focusing on integrity, fund managers can ensure that
reputation is beyond reproach.

The blog is published on Invest Europe website: https://www.investeurope.eu/newsopinion/opinion/blog/2018/why-being-ruthless-about-reputation-matters/

The Board of Lithuanian Private Equity and Venture Capital Association elected Sarunas Alekna as their new Chairman

The board of Lithuanian Private Equity and Venture Capital Association (LT VCA) elected Sarunas Alekna as their new Chairman. Sarunas has been working as an Investment Director in BaltCap since 2010.

The new board was elected at the LT VCA general meeting on March 29 and the members will serve for two years.

Lithuanian Venture Capital Association is the representative body of Lithuanian Venture Capital industry. Established in 2009, it has grown to 31 active members covering different types of venture capital business activities: 10 full members and 21 associate members comprise fund management companies, consulting firms, lawyers, public institutions who support and advise investors and entrepreneurs in the structuring and management of their partnerships.

Sarunas also serves as the Chairman of the Supervisory Board of BaltCap’s portfolio companies Kelprojektas, FCR Media, Ecoservice and BPT Real Estate. He’s also a graduate of London Business School and Baltic Institute of Corporate Governance.

“Lithuanian private equity and venture capital ecosystem, while at an early development stage, is already demonstrating first achievements – the amount of private equity and venture capital investments increases from year to year, helping small and medium companies grow at home and abroad. It’s especially important that over the last years we’ve seen an increasing number of transactions whereby local funds exit portfolio companies, delivering positive returns for fund investors. The new board of LT VCA will strive to support sustainable growth of the ecosystem, while maintaining a dialogue with private and public sector partners,” Sarunas Alekna said.

Apart from services on behalf of members (monitoring of legal, regulatory and tax issues, research studies and statistics, training, development and communication, etc.), LT VCA serves as a central platform for representation and promotion of the VC business to institutional investors, opinion leaders, and public policy makers. The association helps to improve financing of the economy, for small businesses in particular, as well as promote economic growth and entrepreneurial spirit. LT VCA is open to cooperation with venture capital funds, asset management funds, investment funds, business angels, legal offices, financial consultants and all other players involved in the market of direct investments.

 

Additional information:

Sarunas Alekna
Investment Director, BaltCap

sarunas.alekna@baltcap.com

Phone: +370 6868 9242

BaltCap won the Venture Capital Firm of the Year award

On March 22, CEE M&A Director Magazine hosted the 2nd annual CEE Mergers & Acquisitions (M&A) Awards ceremony at the Intercontinental Hotel in Warsaw.

We are proud to announce that among the finalists across 15 categories, BaltCap gained recognition by winning the Venture Capital Firm of the Year Award.

In addition to the traditional M&A awards, a host of prizes were awarded to a variety of M&A consultancy and services companies for their professionalism and excellence in the sector. For example, this year the CEE M&A Awards featured several new law firm categories, recognizing the professionalism and expertise of international law practices.

At a glance around 150 senior decision makers from the M&A sector were in attendance.

Primarily the awards recognized companies and individuals who had demonstrated the best overall performance during the past year as well as the outstanding efforts and achievements of all those involved in identifying, coordinating and completing the important deals, which have produced consistent results, and the potential to change the fate of businesses and industries throughout the region.

 

Additional information:

http://www.ceemaawards.com/

ESTVCA elected Kristjan Kalda as a new Chairman

Estonian Private Equity & Venture Capital Association (ESTVCA) has elected BaltCap partner Kristjan Kalda as a new Chairman. The new Management Board was elected for the next 2 years.

 

Kristjan Kalda also serves as the Chairman of the Supervisory Board of BaltCap portfolio companies TREV2 Group, Fitek and Magnetic MRO. The latter was recently named Estonian Company of the Year and Estonian Exporter of the Year.

 

ESTVCA is the representative body of Estonian Private Equity & Venture Capital Industry that was established in 2009. In addition to the new chairman,  the other ESTVCA management board members are Kalmer Kikas (BPM Capital), Margus Uudam (Karma Ventures), Heidi Kakko (BaltCap Growth Fund), Kaido Veske (Livonia Partners), Martin Hendre (Tera Ventures), Sille Pettai (SmartCap), Antti Perli (Ellex Raidla), Kadri Kallas (TGS Baltic), Mihkel Kolk (Estonian Association of Fund Managers) and  Kristel Raidla-Talur (COBALT).

Kristjan Kalda says that ESTVCA members, owning companies and employing people in different countries, have a very good understanding of Estonian competitive advantage.

“We are well positioned to help improve the investment and entrepreneurship climate in Estonia and increase the competitive advantage by sharing our experiences and participating in developing legal environment,” Kalda added.

The goal of ESTVCA is to develop a sustainable and attractive ecosystem for the benefit of entrepreneurs, fund managers, institutional investors and to increase the output of innovative and high growth potential companies in Estonian economy. ESTVCA has 15 members and 23 Associate Members. Combined assets under management of Private Equity & Venture Capital houses are €880m and the goal is to reach €1bn by 2020.

 

Members of ESTVCA are Ambient Sound Investments, BaltCap, BPM Capital, Eften Capital, European Investment Fund, Invesco Finance, Karma Ventures, KredEx, LHV Asset Management, Livonia Partners, SmartCap, Swedbank Investment Funds, Tera Ventures, United Partners and UP Invest.

 

More information:

Kristiina Koort

Managing Director
+372 5750 2049
kristiina@estvca.ee
www.estvca.ee

BaltCap received 2018 CSR Index gold level award

BaltCap received a gold level Quality Label in the 10th Estonian Responsible Business Index 2018 in Estonia. BaltCap participated in the CSR Index Estonia for 8th consecutive year and received the gold level award for second year in a row.

This year’s event marked a special milestone – the labels have been given to several hundred responsible businesses for 10 years already. On a gala dinner held on May 24, 70 companies operating in Estonia received either a bronze, silver or gold level quality label for following fair business practices and setting a good example.

It is the second time for BaltCap to receive the highest, gold level quality label showing our continuing contribution to further develop CSR matters and make it a top priority also among our portfolio companies.

BaltCap highly appreciates the concept of corporate social responsibility and hopes to be a role model for many other firms. We have followed the policies and practices of responsible investment since the first funds and believe that environmental, social and corporate governance issues play an increasingly important role in today’s business environment.

Every year we also issue an Environmental, Social and Governance report of our own, this document is based on questionnaires conducted among our portfolio companies. By this we seek to further improve general understanding in ESG matters and identify actions our companies can take to strengthen not only businesses but also reputation and performance.

The CSR Index aims at assisting companies to define, evaluate and monitor their economic, social and environmental impact. It enables companies to receive feedback and compare their results with their peers, thus identifying the future needs for development giving ideas and inspiration.

The official CSR Quality Label is given to the organizations whose result in the Sustainable Business Index of Estonia proved their high performance in terms of strategic approach to corporate responsibility and well-planned and delivered responsible activities towards local community, environment, workplace and marketplace. The Index is the best opportunity in Estonia to take a look at social, environmental and workplace practices, but also business ethics. These are important topics for companies that want to be successful in longer term.

The full results of the 2018 Estonian Sustainable Business Index are available here: http://indeks.csr.ee

 

Additional information:

Martin Kõdar
Managing Partner

Phone: +3726650282

martin.kodar@baltcap.com

BaltCap received 2017 CSR Index gold level award

BaltCap received a gold level Quality Label in the 9th Estonian Responsible Business Index 2017 in Estonia. BaltCap participated in the CSR Index Estonia for the 7th consecutive year and received a total score of 94%.

 

This is the first time for BaltCap to receive the highest, gold level quality label showing our continuing contribution to further develop CSR matters and make it a top priority also among our portfolio companies.

 

BaltCap highly appreciates the concept of corporate social responsibility and hopes to be a role model for many other firms. We have followed the policies and practices of responsible investment since the first funds and believe that environmental, social and corporate governance issues play an increasingly important role in today’s business environment.

 

Every year we also issue an  Environmental, Social and Governance report of our own, this document is based on questionnaires conducted among our portfolio companies. By this we seek to further improve general understanding in ESG matters and identify actions our companies can take to strengthen not only businesses but also reputation and performance.

 

The CSR Index aims at assisting companies to define, evaluate and monitor their economic, social and environmental impact. It enables companies to receive feedback and compare their results with their peers, thus identifying the future needs for development giving ideas and inspiration.

 

The official CSR Quality Label is given to the organizations whose result in the Sustainable Business Index of Estonia proved their high performance in terms of strategic approach to corporate responsibility and well-planned and delivered responsible activities towards local community, environment, workplace and marketplace. The Index is the best opportunity in Estonia to take a look at social, environmental and workplace practices, but also business ethics. These are important topics for companies that want to be successful in longer term.

 

According to the scoring system, Gold Label is given to companies whose total score is more than 90% and who are defined as outstandingly sustainable companies. The gold-level enterprise is consciously responsible, systematic and consistent showing initiative and ensuring responsible behaviour at all levels of management and employees. The company is a role model for conveying corporate social responsibility values to related parties and leading the way in general.

 

To participate, the companies are asked to fill out an evaluation questionnaire. Gold, silver and bronze category labels are given to companies according to the aggregated results. The questionnaires are evaluated by industry experts and the best companies are awarded with the Quality Label.

 

The full results of the 2017 Estonian Sustainable Business Index are available here: http://indeks.csr.ee/laureaadid/2017/

 

Additional information:

Martin Kõdar
Managing Partner

Phone: +3726650282

martin.kodar@baltcap.com

BaltCap announces new Partners

BaltCap, the largest private equity and venture capital firm in the Baltic States announces the promotion of four long term team members Kristjan Kalda, Oliver Kullman, Martins Jaunarajs and Kornelijus Celutka to Partner.

 

The promotions are part of BaltCap’s plan to expand its senior team showing our increased long-term commitment to the Baltic region. These four outstanding individuals will enable BaltCap to significantly grow the business further.

 

Kristjan Kalda and Oliver Kullman are based in BaltCap’s office in Tallinn, Estonia. They are both dedicated members of the BaltCap private equity funds’ team. Kristjan has been responsible for a number of successful investments including gas distribution and trading company Energate, wind farm developer Tuuleenergia, aircraft maintenance provider Magnetic MRO and financial process automation company Fitek.

 

Oliver Kullman’s contribution has been very valuable in healthcare investments including clinical laboratory Quattromed (exited to Synlab in 2013) and current investments dental care chain Unimed and occupational healthcare provider Qvalitas, both leading companies in their field in Estonia. He is also looking after the digital media agency FCR Media and participated in the investment in eKool, an e-school service provider.

 

Martins Jaunarajs is based in BaltCap’s office in Riga, Latvia. He is leading BaltCap Latvia Venture Capital Fund team and BaltCap Growth Fund team locally. Martins has led BaltCap’s investments in concrete floor specialist Primekss and software developer Clusterpoint among others.

 

Kornelijus Celutka is based in BaltCap’s office in Vilnius, Lithuania. He is leading Lithuania SME Fund team and BaltCap Growth Fund team in Lituania. Kornelijus has been responsible for BaltCap’s investments in gym chain Impuls, private healthcare service provider InMedica, coffee shop chain Coffee Inn and others. Before joining BaltCap, Kornelijus worked in the investment banking division at Deutsche Bank in London.

 

Peeter Saks, Managing Partner of BaltCap said, “We thank Kristjan, Oliver, Martins and Kornelijus for their hard work and long term dedication over so many years. We are sincerely happy to see their continuous commitment to BaltCap and look forward to the future successes together.”

 

Additional information:

Martin Kõdar

BaltCap
Managing Partner

Phone: +3726650280

martin.kodar@baltcap.com

BaltCap is proud to present the 2017 ESG report

2017 was a very exciting year for BaltCap with the main highlight being the launch of two new investment funds – BaltCap Infrastructure Fund and BaltCap Growth Fund – under a brand new limited partnership funds regime (Usaldusfond) in Estonia. We also witnessed a significant progress in the environmental, social and governance (“ESG”) performance of our porfolio companies and are happy to share the results by presenting our 7th annual ESG report.

Our portfolio companies posted strong results in 2017 – the aggregate revenues reached €615 million, EBITDA €60 million and the total number of employees 7,533. During BaltCap’s ownership, the aggregate revenues and EBITDA have grown over two times and the number of employees has increased more than 50%.

During 2017, our 33 portfolio companies created approximately 200 new job positions and:

paid €112 million of net salaries, including €70 million in the Baltic States (€34 million in Estonia, €10 million in Latvia, and €26 million in Lithuania);
paid €78 million of taxes, including €49 million in the Baltic States (€25 million in Estonia, €6 million in Latvia, and €18 million in Lithuania);
invested €30 million to equipment, machinery, new premises, IT systems, etc. (capital expenditure), including €29 million in the Baltic States (€11 million in Estonia, €5 million in Latvia, and €13 million in Lithuania).
Please see our full 2017 ESG report available here: http://bit.ly/BaltCapESG2017

BaltCap strives to build Baltic companies into internationally recognised business champions. The latest proof is Tallinn headquartered full-service aircraft maintenance company Magnetic MRO – during BaltCap’s ownership between 2010-2018, Magnetic MRO grew from a small regional player to a profitable global company. In 2017, Magnetic MRO received Company of the Year and Exporter of the Year awards in Estonia. In 2018, BaltCap exited Magnetic MRO to an international strategic buyer Guangzhou Hangxin Aviation Technology listed on Shenzhen Stock Exchange in China.

The investors of BaltCap’s investment funds include Baltic pension funds and international institutions – the European Investment Fund, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank and others.

 

Additional information:

Martin Kõdar
Co-Managing Partner, BaltCap

martin.kodar@baltcap.com

Phone: +372 665 0280

BaltCap received 2015 CSR Index silver-level award

BaltCap received a silver-level Quality Label in the 8th Estonian Responsible Business Index 2015 in Estonia. BaltCap participated in the CSR Index Estonia for the 6th consecutive year.

 

BaltCap has followed the policies and practices of Responsible Investment since its first funds and believes that environmental, social and corporate governance issues play an increasingly important role in today’s business environment. BaltCap highly appreciates the concept of corporate social responsibility and hopes to be a role model for many other firms.

 

The CSR Index aims at assisting companies to define, evaluate and monitor their economic, social and environmental impact. It enables companies to receive feedback and compare their results with their peers, thus identifying the future needs for development giving ideas and inspiration.

 

The official CSR Quality Label is given to the organizations whose result in the Sustainable Business Index of Estonia proved their high performance in terms of strategic approach to corporate responsibility and well-planned and delivered responsible activities towards local community, environment, workplace and marketplace. The Index is the best opportunity in Estonia to take a look at social, environmental and workplace practices, but also business ethics. These are important topics for companies that want to be successful in longer term.

 

More than 150 companies have participated in the Index from 2007. To participate, the companies are asked to fill out an evaluation questionnaire. Gold, silver and bronze category labels are given to companies according to the aggregated results. The questionnaires are evaluated by industry experts and the best companies are awarded with the Quality Label.

 

 

The full results of the 2015 Estonian Sustainable Business Index are available here: http://quiz.csr.ee/vaata-kes-said-vastutustundliku-ettevotluse-indeksi-margised/

 

Additional information:

Martin Kõdar

Managing Partner

martin.kodar@baltcap.com

Phone: +3726650282

2014 CSR Index silver-level award

BaltCap received a silver-level Quality Label in the 7th Estonian Sustainable Business Index 2014 in Estonia. BaltCap participated in the CSR Index Estonia for the 5th consecutive year.

 

BaltCap has followed the policies and practices of Responsible Investment since its first funds and believes that environmental, social and corporate governance issues play an increasingly important role in today’s business environment. BaltCap highly appreciates the concept of corporate social responsibility and hopes to be a role model for many other firms.

 

The CSR Index aims at assisting companies to define, evaluate and monitor their economic, social and environmental impact. It enables companies to receive feedback and compare their results with their peers, thus identifying the future needs for development.

 

The official CSR Quality Label is given to the organizations whose result in the Sustainable Business Index of Estonia proved their high performance in terms of strategic approach to corporate responsibility and well-planned and delivered responsible activities towards local community, environment, workplace and marketplace.

 

The questionnaires were evaluated by industry experts and the best companies were awarded with the Quality Label. Gold, silver and bronze category labels were given to companies according to the aggregated results. There were 77 participants this year and 50 of them gained the Quality Label. Both numbers have been growing year by year.

 

The Responsible Business Quality Label is issued by Responsible Business Forum in Estonia, Ministry of Economic Affairs, Estonian Business School, KPMG Baltics and major business newspaper Äripäev.

 

The full results of the 2014 Estonian Sustainable Business Index are available here: http://www.csr.ee/2014-tulemused

Additional information:

Martin Kõdar
Co-Managing Partner

martin.kodar@baltcap.com

Phone: +3726650282

BaltCap won the Silver Award at Private Equity Exchange Awards Ceremony 2014

We are proud to announce that BaltCap gained an honorable recognition by winning the silver award at the 5th edition of the Private Equity Exchange Awards Ceremony held on December 4th in Paris. Gathering 400 top Private Equity Performers, this closing ceremony rewarded, during a gala dinner, this year’s best Private Equity firms.
BaltCap was nominated in the category Best Russian & Central and Eastern European Private Equity Fund.

 

Acknowledged by the major European Private Equity performers, this event highlights top performers of the Private Equity scene.

 

BaltCap’s 2014 distinction recognizes the overall performance over the past 3 to 5 years based on quantitative and qualitative criteria such as Return on Investment, exit performance, etc.

 

A specialized jury composed of 70 Limited Partners picked up the winners in several categories on the basis of their personal knowledge but also based on a short Application Form filled in by the selected firms.

 

Additional information:

Peeter Saks
Managing Partner

peeter saks@baltcap.com

Phone: +3726650285

BaltCap – Financial Markets Enlivener of the Year

FinanceEstonia, together with KredEx and Nasdaq OMX Tallinn awarded the best Estonian companies operating in the financial field at the Award Gala held on November 19. The best of the best were announced in five different categories.

BaltCap was awarded as the Financial Markets Enlivener of the Year. We were recognized for our effort to guarantee capital offering for long-term and sustainable funding model in Estonian economy and for establishing BaltCap Private Equity Fund II  in 2014 with total volume of 82 million euros.

Finance Estonia is a financial organization established in 2011. Their goal is to create development opportunities for the member companies and support economic development.

Currently, there are 62 members in Finance Estonia.

 

Additional information:

Peeter Saks
Managing Partner

peeter saks@baltcap.com

Phone: +3726650285

BaltCap announces new Partner

BaltCap, the leading private equity and venture capital firm in the Baltic States announces the appointment of Sandijs Abolins-Abols as Partner.

 

Sandijs has been a long-time valuable member of BaltCap investment team. He is based in BaltCap’s office in Riga, Latvia where he is a dedicated member of the buyout team. He has been responsible for a number of successful investments like the do-it-yourself retail chain Depo DIY and business process outsourcing services provider Runway.

 

Peeter Saks, Managing Partner of BaltCap said: “This promotion is part of our longer term plan to strengthen the organisation and the senior team. Sandijs has been one of the key members of our Latvian team for many years and has contributed a lot to BaltCap’s overall success. We congratulate Sandijs and are proud to have him in the company.”

 

Sandijs Abolins-Abols (born in Latvia in 1971) joined BaltCap as investment manager in 2002. Sandijs’s involvement in current portfolio includes Runway and VLT. He was involved in Depo DIY and Papirfabrika Ligatne before their exits. Prior to this he worked for the Latvian Savings Bank as a credit risk manager. He holds an MBA degree from the Weatherhead School of Management.

Additional information:

Martin Kõdar
Managing Partner

martin.kodar@baltcap.com

Phone: +3726650282

BaltCap’s Medicap exit shortlisted for Emerging Europe Deal of the Year

Every year, The Private Equity Awards hosted by Real Deals recognizes the best of European private equity. The shortlists for the 2014 awards have now been announced and BaltCap’s exit from Medicap has been nominated in the category of Emerging Europe Deal of the Year.

 

BaltCap originally invested in Medicap in 2008. Together with the management team BaltCap carried out a regional buy-and-build strategy, expanding the company in its home market Estonia, as well as in Finland and Lithuania, in total growing the company’s revenues by more than four times. Medicap was acquired by synlab, a leading European provider of medical laboratory services in July 2013.

 

Now in their thirteenth year, the awards have become well known and recognized in the private equity industry and among those that advise it. It is the first time that a BaltCap deal has been nominated for The Private Equity Awards.

 

Winners will be announced on 10 April.

 

Additional information: http://privateequityawards.com

2012 CSR Index silver-level award

BaltCap received a silver-level Quality Lable in the 5th Corporate Social Responsibility Index 2012 in Estonia.

 

BaltCap participated in the CSR Index Estonia for the 3rd concecutive year . The company was one of the 6 small companies (less than 50 employees) that received CSR Quality Labels.

 

BaltCap has followed the policies and practices of Responsible Investment since its first funds and believes that environmental, social and corporate governance issues play an increasingly important role in today’s business environment. BaltCap highly appreciates the concept of corporate social responsibility and hopes to be a role model for many other firms.

 

The CSR Index is led by the Responsible Business Forum in collaboration with the Ministry of Economic Affairs and Communications, the EBS Ethics Centre and business newspaper Äripäev.  The Index aims to assist companies to define, evaluate and monitor their economic, social and environmental impact. It enables companies to receive feedback and compare their results with their peers, thus identifying the future needs for development.

 

The official CSR Quality Label is given to the organizations whose result in the Responsible Business Index of Estonia proved their high performance in terms of strategic approach to corporate responsibility and well-planned and delivered responsible activities towards local community, environment, workplace and marketplace.

 

The questionnaires the contestants had to fill out were evaluated by industry experts and the best companies were awarded with the Quality Label. Gold, silver and bronze category labels were given to companies according to the aggregated results. There were 63 participants this year and 34 of them gained the Quality Label.

 

The full results of the 2012 CSR Index are available here: http://www.csr.ee/2012-tulemused/

 

Further information:

Martin Kõdar

Managing Partner

BaltCap

Phone: +372 665 0282

Email: martin.kodar@baltcap.com

www.baltcap.com

BaltCap was awarded as the most responsible local small business in Estonia

BaltCap was the only investment firm to participate in the Estonian CSR index 2011. The company gained 83.1 points of the possible 100 and took 6th place in general standings, yet winning in the category of local small businesses.

 

BaltCap has followed the policies and practices of Responsible Investment since its first funds and believes that environmental, social and corporate governance issues play an increasingly important role in today’s business environment. BaltCap highly appreciates the concept of corporate social responsibility and hopes to be a role model for many other firms.

 

Responsible Business Forum of Estonia in cooperation with Estonian Business School and Business Newspaper Äripäev launched the 4th Corporate Responsibility Index in Estonia this year. The Index aims to assist companies to define, evaluate and monitor their economic, social and environmental impact. It enables companies to receive feedback and compare their results with their peers, thus identifying the future needs for development.

 

The questionnaires the contestants had to fill out were evaluated by specific industry experts and the best 30 companies were awarded with the Quality Label.

 

The official Responsible Business Quality Label is awarded to the organizations whose result in the Responsible Business Index of Estonia proved their high performance in terms of strategic approach to corporate responsibility and well-planned and delivered responsible activities towards local community, environment, workplace and marketplace.

 

All companies that participated in the CSR Index Estonia 2011 deserve to be highlighted for undergoing a thorough analyzes process. The results show that corporate social responsibility is becoming increasingly important.

 

Further information:

Martin Kõdar

Parnter

BaltCap

Phone: +372 665 0282

Email: martin.kodar@baltcap.com

www.baltcap.com

BaltCap invests in Primekss

BaltCap, the leading private equity and venture capital investor in the Baltic States, invests EUR 1.4m in Riga-headquartered pan-Nordic concrete floors contracting company Primekss to obtain a significant minority stake. This is the first investment by BaltCap Latvia Venture Capital Fund, which is part of the EU Structural Fund’s co-financed JEREMIE Holding Fund managed by the European Investment Fund in Latvia.

Primekss, established 1997, has continuously invested in research and development, which has allowed the creation of unique, patented technology for casting slender, tough, jointless concrete floors for heavy use. The very flat floors improve the operating efficiency of large automated warehouses and other commercial and industrial premises. In addition to the considerable advantages for end users, the technology saves up to 50% of CO₂ emissions during construction, if compared to traditional concrete slab construction.

The new PrimeComposite technology has already been widely adapted by leading customers across Scandinavia and Baltics, including environmentally conscious general contractor Skanska, The Postal Service of Norway and many others.

“We are proud and very excited about being able to support the superb team of Primekss in their ambitious growth plans. This is a unique opportunity for our fund to back a truly innovations-driven and environmentally conscious company with great growth potential in international markets,” said Mārtiņš Jaunarājs from BaltCap.

“The interest in PrimeComposite from local and global customers has been considerable, yet our growth has been hampered by lack of funding. This investment will lay a sound foundation for rapid expansion. We are especially happy to have the experienced and professional team at BaltCap as partners in this global greentech venture”, said Jānis Ošlejs, CEO of Primekss.

Richard Pelly, Chief Executive of the European Investment Fund added “This investment into Primekss is BaltCap’s first transaction from the Fund established with our cornerstone investment. It is a key milestone for Primekss, BaltCap and the EIF as it shows that high-growth innovative enterprises in Latvia can now start fully benefitting from EU financing.”

 

Further information:

 

Mārtiņš Jaunarājs

Investment Director

BaltCap

Phone +371 2924 3056

E-mail: martins.jaunarajs@baltcap.com

 

Jānis Ošlejs

CEO

Primekss

Phone +371 2922 3680

E-mail: janis.oslejs@primekss.com

Swedbank IPS, SEB Venture Capital and LHV have joined as investors of BaltCap Latvia Venture Capital Fund

New institutional investors Swedbank Ieguldījumu Pārvaldes Sabiedrība, SEB Venture Capital and LHV Varahaldus, joined as investors to BaltCap Latvia managed venture capital fund representing their trust in BaltCap and Latvian economy in general. The agreement with the investors was reached on April 28, 2010.

In total, BaltCap fund has attracted 7 private sector institutional investors (Parex Asset Management, Hipo Fondi, LKB Krājfondi, Pirmais Slēgtais Pensiju Fonds, SEB Venture Capital, LHV Varahaldus, Swedbank Ieguldījumu Pārvaldes Sabiedrība), which means that these investors would continue investing pension funds and other resources into the Latvian economy in the future, possibly in larger amounts.

Harijs Švarcs, Head of Swedbank IPS, „This is an exceptional opportunity for participants of our pension plans to earn together with fast growing and perspective Latvian companies. Thanks to BaltCap`s local market knowledge, experience as well as EIF`s financing, favourable conditions have been established for high investment return. This is an excellent example how EU`s structural funds in combination with local pension funds` financing can successfully facilitate growth of entrepreneurship in Latvia via developing competitive products and generating new working places.”

„We are pleased for the high interest attracted from investors to the BaltCap`s venture capital fund for financing of Latvian companies. In addition to EU structural funds we have managed to attract largest Baltic level pension fund managers, other institutional investors and high net worth individuals, which in our view shows investors` trust in future growth of the Latvian economy” says BaltCap partner Dagnis Dreimanis.

As communicated before, on January 22, 2010, BaltCap signed agreement with EIF, being the first venture capital fund manager to successfully complete private fundraising under EIF managed JEREMIE initiative in Europe, and the first structured venture capital fund raised in the Baltics since the crisis hit region. Within nearest years BaltCap will provide financing of 30m EUR to SME`s in Latvia.

20m EUR of available funds is EIF administrated Latvian JEREMIE Investment Holding Fund financing and 10m EUR was attracted from private sector investors. Fund will provide growth financing to existing companies with fast growth potential, taking equity stakes between EUR 0.3 – 3m. The aim of the Fund is to do 15 – 20 investments until the end of 2013.

Richard Pelly, Chief Executive of the European Investment Fund stated, “This is a hugely important transaction for the EIF and for Latvia. It is one of the first transactions in the European Union under JEREMIE initiative and comes as a result of excellent collaboration between the Ministry of Economy, BaltCap and the EIF to help enhance access to finance for Latvian SMEs.”

„In the upcoming years up to 30m EUR would be available in investments to Latvian companies, majority of the fund being financed from EU structural funds. BaltCap managed venture capital fund offers opportunity for SME`s in Latvia to attract financing for their development, and availability of financing to local enterprises is a crucial factor for warming the economy and enabling long term growth.” says representative of Ministry of Economics Andris Liepiņš.

 

For additional information please contact: Astra Neimane

Tel. +371 67214225

Mob. +371 29116680

astra.neimane@baltcap.com www.baltcap.com

BaltCap Portfolio Company Acquires Estonian Yellow Pages Company Ekspress Hotline

BaltCap Private Equity Fund portfolio company Contact Holding signed an agreement with the publicly listed Ekspress Grupp to acquire 100% of yellow pages business Ekspress Hotline AS and its subsidiaries on April 23rd. The transaction is structured via holding company Cheh OÜ.

The transaction is subject to a positive decision from the Estonian Competition Authority.

For more information please contact:

 

Simonas Gustainis

Partner

Tel: +370 5 254 67 13

Email: simonas.gustainis@baltcap.com

 

Oliver Kullman

Investment Manager

Tel. +372 665 02 80

Email: oliver.kullman@baltcap.com

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:

 

Simonas Gustainis

Partner

Tel: +370 5 254 6713

Email: simonas.gustainis@baltcap.com

 

Silvestras Tamutis

Investment Manager

Tel: +370 5 254 6983

Email: silvestras.tamutis@baltcap.com

BaltCap Portfolio Company Closes Acquisition of Ekspress Hotline

BaltCap Private Equity Fund portfolio company Contact Holding signed an agreement with the publicly listed Ekspress Grupp to acquire 100% of Estonian yellow pages business Ekspress Hotline AS and its subsidiaries on April 23rd 2009.

Following Estonian Competition Authority approval from September 29th 2009, the transaction was closed on 25th of February 2010.

 

For more information please contact:

Simonas Gustainis

Partner

Tel: +370 5 254 67 13

Email: simonas.gustainis@baltcap.com

www.baltcap.com

 

Oliver Kullman

Investment Manager

Tel: +372 665 02 80

Email: oliver.kullman@baltcap.com

www.baltcap.com

BaltCap acquires 100% of Air Maintenance Estonia

BaltCap, the leading private equity and venture capital investor in the Baltic States, acquires 100% in Estonia’s leading aircraft maintenance, repair and overhaul (MRO) company Air Maintenance Estonia (AME) from Scandinavian Airlines (SAS).

 

“BaltCap is excited to acquire a knowledge-based, export-oriented industrial company in Estonia with great outlook. AME has highly skilled and creative workforce – more than half of the 160 employees have higher education,” said Kristjan Kalda from BaltCap.

 

“BaltCap will support Air Maintenance Estonia’s expansion strategy. During next two years we intend to double the existing production capacity.”

 

“AME is a company with open culture and international staff. Our skilled workforce, the excellent and developing infrastructure of Lennart Meri Tallinn Airport, and the aviation engineering training provided by the Estonian Aviation Academy make us highly competitive on the international aircraft maintenance market,” said Lars-Olof Bolinder, CEO of Air Maintenance Estonia.

 

“Now is the right moment to carry out the expansion and we expect BaltCap as the strongest financial partner of the Baltic region to assist in reaching these goals.”

 

“SAS has been the owner of Air Maintenance Estonia since 2003. SAS is concentrating on its core activities and exiting maintenance operations is part of our strategy. AME needs new investments for further expansion and therefore sales to BaltCap is a logical step,” said Sture Stölen, Vice President SAS Investor Relations.

 

Air Maintenance Estonia started its operations in 1995, providing maintenance services to Estonian Air aircrafts. Since 2002 the company is operating independently.

 

The clients of Air Maintenance Estonia are different European aviation companies, including Estonia’s national carrier Estonian Air. In 2009, the company’s turnover was EEK 196m.

 

Lars-Olof Bolinder will continue as CEO of Air Maintenance Estonia.

 

The parties have agreed not to disclose details of the transaction value.

 

SEB Enskilda Corporate Finance acted as sole financial adviser to SAS.

Further information:

Kristjan Kalda

Investment Manager

BaltCap

Phone +372 665 0280

E-mail: kristjan.kalda@baltcap.com

www.baltcap.com

 

Lars-Olof Bolinder

CEO

Air Maintenance Estonia

Phone +372 640 1106

E-mail: lars-olof.bolinder@ame.ee

www.ame.ee

BaltCap signs agreement with European Investment Fund on establishment of EUR 30m venture capital fund

With today’s signature, BaltCap Latvia is the first venture capital fund manager to successfully complete private fundraising under EIF managed JEREMIE initiatives in Europe, and the first structured venture capital fund to be raised in Baltics since economic crisis hit region.

Aggregate available financing to Latvian micro, small and medium enterprises will be up to EUR 30m. The fund will provide start-up and expansion financing to companies with established operations and growth potential taking equity stakes between EUR 0.3 – 3m with the aim to build a diversified portfolio of 15-20 investments.

The EUR 30m Fund will consist of EUR 20m provided by EIF managed JEREMIE Holding Fund and EUR 10m raised from leading local private investors, including Parex Asset Management, Hipo Fondi, LKB Krajfondi, Pirmais Slegtais Pensiju Fonds and high net worth individuals.

Richard Pelly, Chief Executive of the European Investment Fund stated, “This is a hugely important transaction for the EIF and for Latvia. It is one of the first in the European Union and comes as a result of excellent collaboration between the Ministry of Economy, BaltCap and the EIF to help enhance access to finance for Latvian SMEs.”

„Signing of the agreement means that up to 30m EUR would be available in investments to Latvian companies. During economic downturn improving availability of financing to local enterprises is a crucial factor for warming the economy and for this reason Closing of the BaltCap Latvia Venture Capital Fund comes in the right time” says Minister of Economics Artis Kampars

 

„We are glad that as of today we are able to provide expansion financing to Latvian SMEs, and help support Latvian economy by investing in such crucial sectors of the economy as manufacturing and services. BaltCap is sure – this is the right time for investments, as we currently see a strong pipeline of investment cases with growth potential” says BaltCap Partner Dagnis Dreimanis.

 

„Entrusting our resources to a local venture capital fund manager means we trust in the long term potential of the Latvian economy since our aim is to maximize the long term value of the pension funds under our management” says representative of private sector investors Chairman of the Board of Pirmais Slegtais Pensiju Fonds Anrī Leimanis.

 

For additional information please see www.baltcap.com or contact:

 

Astra Neimane

Tel. +371 67214225

Mob. +371 29116680

astra.neimane@baltcap.com

www.baltcap.com

Quattromed acquired 31% stake in Nova Vita Clinic

In late 2009, Fertilitas AS sold its shares in Nova Vita Clinic to MediCap Holding OÜ, who is the owner of the leading Estonian medical laboratory Quattromed HTI Laborid. In connection with the transaction, Nova Vita Clinics will start a long-term co-operation with Quattromed and close its clinical laboratory in December. This allows Nova Vita to focus on its core areas IVF and human genetics.

 

The ownership of Nova Vita clinic is now divided between two strategic owners – Yhtyneet Medix Laboratoriot and MediCap Holding. They both believe in long-term growth and consolidation need in IVF business in the Baltic region and have therefore decided to co-operate in Nova Vita. “Nova Vita Clinic is the leader of IVF-activities in Estonia, we are happy to become the owner of such company,” Erki Mölder, the CEO of MediCap Holding said. He continued: “We look forward to launching denser co-operation with Nova Vita in Estonia and work hard to find co-operation possibilities in the neighboring countries.”

 

According to the words of dr. Ivo Saarma, the founder and CEO of Fertilitas, the clinic shall focus its efforts on main activities: „The core business of Fertilitas is clinical medicine: stationary and ambulatory healthcare. Another reason for the sale is very simple – due to economic downturns, we are not able to do everything; we shall concentrate on our core business. Previously we haven’t had such stress. “

 

Andres Salumets shall continue as the CEO of Nova Vita Clinic. „The financial turbulence is forcing every company to evaluate its activities, “ dr. Salumets said, and continued: „this made us realize that our volume is too small for running a profitable clinical laboratory unit in Estonia. The co-operation agreement with Quattromed helps us to provide the needed clinical laboratory services for our patients without compromising the quality and allows us to concentrate on our core areas IVF and human genetics. We shall certainly continue co-operation with other clinics and academic institutions to improve the efficiency of the infertility treatment. “

 

Background:

MediCap Holding which is controlled by BaltCap Private Equity Fund holds shares of Quattromed HTI Laborid OÜ and Nova Vita Kliinik AS. Over one-third of family doctors and the majority of Estonian clinics and hospitals use the services of Quattromed HTI Laborid. Quattromed HTI Laborid OÜ owns central labs in Tallinn and Tartu and operates the laboratory of local nursing hospital in Jõhvi. The turnover of companies owned by MediCap reaches 80 million EEK and they employ 80 persons.

 

Yhtyneet Medix Laboratoriot Oy is the largest privately owned clinical laboratory in Finland with a turnover of roughly 26 million EUR and with approximately 210 employees in Finland. It is offering clinical laboratory services in both private and public healthcare. Its customer base includes private medical centres, hospital districts, university central hospitals, central hospitals and health care centres.

 

Additional information:


Erki Mölder, CEO of MediCap Holding OÜ

E-mail: erki.molder@quattromed.ee, phone: +372 514 724

Energate participates in developing Varbla wind farm

OÜ Tuuleenergia, currently engaged in two wind farm developments in Pärnumaa Varbla county found a strategic partner in Energate OÜ.

 

“We have found a strategic partner with long-term interests in energy company Energate who is financially supported by private equity investor BaltCap,” Andres Lõhmus, a board member of OÜ Tuuleenergia, told BNS.

 

“Energate supports the wind farm development until the turbines are operating and integrated into the network, after the operating function to manage the whole system has been created,” Lõhmus added.

 

As Lõhmus also mentioned, the construction works of the wind farms are moving forward as expected. “At the moment, national grid operator OÜ Elering is building the merging point of Lõpe substation which should be finalized in October 2010. In the meantime, our main focus is making the final choice of the turbines to be used and setting the stage for building the necessary infrastructure,” he specified.

 

Tuuleenergia is planning to erect six turbines with total capacity of 18 MW in Mäli & Tamba wind farms.

 

Energate, acquired by BaltCap in 2008, operates a natural gas distribution network in Estonia.

Further information:

Kristjan Kalda, BaltCap OÜ, phone: +372 665 0284, mobile: +372 508 7967

Latvian Venture Capital Association to be led by Astra Neimane

On March 13, 2009 the general meeting of Latvian Venture Capital Association elected Astra Neimane – an investment manager of the leading Baltic private equity fund management company BaltCap – as the Chairperson of the association’s board.

Astra Neimane has been working in the private equity and venture capital industry since 2003 when she joined SIA BaltCap Management team where she has been involved in several investment projects and portfolio companies’ supervisory board seats. Since 2007, she has also been a member of the board of the Latvian Venture Capital Association. Astra is a graduate of Stockholm School of Economics in Riga.

„I am grateful that members of the association have appreciated my previous experience and work in the private equity industry and also the association. During the next year, I will do my best to support further development of private equity and venture capital industry in Latvia. In the current economic situation, venture capital is one of the main instruments to foster economic recovery by providing financing to companies with growth potential. Especially important would be government support both in terms of allocation of EU structural funding for these purposes, as well as in government’s work in relevant lawmaking to increase competitiveness of Latvian economy,” says Astra Neimane.

 

Both globally and in Latvia, private equity and venture capital industry has considerably fostered economic growth by helping enterprises grow at faster pace and generating new employment to the economy. Well-known Latvian companies that have been growing with the help of private equity and venture capital financing include electronic contract manufacturer Hansa Electronics, which acquired Sweden’s fifth largest industry player Elektromekan, leading Latvian DIY chain DEPO, papermill Ligatne and recycling company V.L.T.

Further information:

Astra Neimane, SIA BaltCap Management Latvia, phone: +371 6721 4225, mobile: +371 2911 6680

http://www.lvca.lv/

Merger of BaltCap’s Estonian and Finnish entities New trade name – OÜ BaltCap

BaltCap, the leading private equity investor in the Baltic States, has completed the merger of its legal entities in Estonia and Finland:

  • OÜ BaltCap Management Estonia (registry code 10822542; Tartu mnt. 2, Tallinn, Estonia),
  • BaltCap Management Oy (registry code 1559479-6; Kauppiaankatu 6C-38, Helsinki, Finland),
  • OÜ BaltCap Holding (registry code 11419647; Tartu mnt. 2, Tallinn, Estonia).

The merger was carried out in order to streamline the legal structure of BaltCap. The Trade and Company registers in Estonia and Finland have officially approved the merger on October 23rd, 2008.

The new official name of the merged entity is OÜ BaltCap (registry code 11419647 with official address Tartu mnt. 2, Tallinn 10145, Estonia).

OÜ BaltCap Management Estonia and BaltCap Management Oy are liquidated, hence the trade names and registry codes of these firms are no longer active.

OÜ BaltCap takes over full authority, duties and responsibilities of the aforementioned 3 merged entities. BaltCap’s logo, domain name, bank accounts and other contacts remain unchanged.

The mother company OÜ BaltCap will continue to own 100% of SIA BaltCap Management (Latvia), UAB BaltCap Management (Lithuania) and BaltCap Private Equity Management Ltd (Jersey).

The merger and change of business name does not bring along any changes to our clients and co-operation partners. All signed and presently active contracts remain effective.

 

For additional information please contact:

Mr. Martin Kõdar

Partner

BaltCap

Tel. +372 665 0280

www.baltcap.com

BaltCap Acquires Leading Medical Diagnostics Company in Estonia

BaltCap, the leading private equity investor in the Baltic States, acquires a 75% stake in the largest private medical diagnostics company in Estonia, Quattromed HTI Laborid OÜ. The transaction takes place via the holding company MediCap Holding OÜ. The sellers are Estonian private individuals and Finnish biotechnology company FIT Biotech OY. The parties did not disclose the transaction size.

 

„As the market leader in Estonia, Quattromed HTI Laborid is a great choice for BaltCap’s first investment in medical diagnostics. We believe the healthcare market has a lot of potential and hope that together with the experienced management of Quattromed HTI we will manage to strengthen the company’s position in Estonia further and to expand in foreign markets,“ said the Managing Partner of BaltCap Peeter Saks.

 

„We have more than 15 years of experience in the field of laboratory services and it is our strategy to apply this knowledge outside Estonia,“ said the CEO of Quattromed HTI Laborid, Erki Mölder. „As there is a consolidation trend in the Baltic and Scandinavian regions, it is a good time for executing a growth strategy. BaltCap, as the strongest financial partner in the Baltic region, will help us a lot in achieving these goals.“

 

„FIT Biotech OY became a shareholder of Quattromed HTI Laborid in 2002 and the growth of the company has been very impressive since then. The implementation of upcoming expansion strategies of Quattromed HTI Laborid OÜ will need additional  investments, and as FIT Biotech OY is a biotechnology company, a timely divesture is the logical step for us,” the President and CEO of FIT Biotech OY, Dr Kalevi Reijonen said. “FIT Biotech shall now focus even more on the development of an HIV vaccine and GTU technology in the R&D department in Tartu under the management of professor Mart Ustav.”

 

Quattromed HTI Laborid OÜ operates in the medical services sector serving a large number of Estonia’s general practitioners, private clinics as well as regional and local hospitals. The company’s turnover in 2007 was approximately 50 million EEK and it has 60 employees. Quattromed HTI complies with the ISO 15189:2003 standard for “Medical laboratories: Particular requirements for quality and competence”.

 

For further information please contact:

Peeter Saks

Managing partner

BaltCap

Tel. +372 665 0280

Email: peeter.saks@baltcap.com

www.baltcap.com

 

Erki Mölder

CEO

Quattromed HTI Laborid OÜ

Tel. +372 737 7070

Email: erki.molder@quattromed.ee

www.laborid.ee

BALTCAP EXITED THE LEADING BALTIC IT TRAINING FIRM

BaltCap, the leading private equity investor in the Baltic States, has sold its majority position in the largest Baltic IT training firm IT Koolituskeskuse OÜ (“IT Protraining Group”)  to AS MicroLink Eesti, an Estonian full service IT firm.

 

In this transaction MicroLink acquired in total 83% ownership stake in IT Protraining Group (including subsidiaries IT Protraining Latvia, Protraining Academy UAB (Lithuania) and BiTA Service Management OÜ) from Baltic SME Fund advised by BaltCap and from the management of IT Protraining Group. The current management will continue as minority shareholders and active managers.

 

”It has been a truly challenging and interesting experience for us. We have enjoyed working with the professional and experienced management in building up the number one IT training firm in the Baltic countries Estonia, Latvia and Lithuania and making it a success,” said Mr. Martin Kõdar, Partner of BaltCap.

 

”BaltCap has provided us the tools, knowledge and financing to build up the strong pan-Baltic operation we have today,” said Mr. Raul Niin, the Chairman of the Management Board of IT Protraining Group. ”We look forward to a fruitful cooperation with MicroLink to continue the fast growth in the Baltic region through further developing the business and expanding the range of services we are offering. Microlink is one of the leading IT companies in the Baltic region and we are happy to have a strong strategic investor on board,” said Niin.

 

“The role of IT education and training plays an important part when we talk about profit to be gained by introducing information technology in enterprises and in society as well,“ said Mr. Enn Saar, the Chairman of the Management Board of AS MicroLink Eesti: “Acquiring IT Protraining Group gives us the opportunity to offer better services to our clients and partners as well as to grow in all three Baltic countries.“

 

IT Protraining Group is the largest and fastest growing information and communication technologies training and consultancy services provider in the Baltic States. Today IT Protraining Group companies include IT Koolituskeskuse OÜ in Estonia, ProTraining Academy UAB in Lithuania, IT Protraining Latvia SIA in Latvia and BiTA Service Management OÜ a leading IT Service Management (ITIL) training and consultancy provider in Estonia.

MicroLink is the largest Estonian IT company whose business interests include: system integration and infrastructure solutions, software development, ERP and business solutions, IT consulting and training, datacentre solutions and end-user PC services and support. AS MicroLink Eesti is a 100% owned direct subsidiary of AS Eesti Telekom.

 

For additional information please contact:

Mr. Martin Kõdar

Partner

BaltCap

Tel. +372 665 0280

www.baltcap.com

 

Mr. Raul Niin

CEO

IT Koolituskeskuse OÜ

Tel. +372 677 4772

www.koolitus.ee

 

Mr. Enn Saar

CEO

MicroLink

Tel. +372 650 1700

www.microlink.ee

BaltCap Completed 100% Buyout of Interinfo

BaltCap, the leading private equity investor in the Baltic States, has acquired 100% of the Interinfo group of companies in Estonia, Latvia and Lithuania (“Interinfo”) from Interinfo Holding SCA.

 

Interinfo is the leading operator of “yellow pages” directories in the Baltics and provide print, internet and directory assistance products. Interinfo has operating companies in Estonia, Latvia and Lithuania with an annual turnover of EUR 15.5 million in 2007.

 

Simonas Gustainis, Partner of BaltCap, who has led the transaction from BaltCap side said, ”the Interinfo group of companies have a strong position on the Baltic advertising markets, especially for local services. We look forward to working together with the strong management team to continuously improve the products and services of the Group. Interinfo with its highly trained sales team, comprehensive databases and strong brands will be in an excellent position to continue as the leading information provider in the Baltics.”

 

“We are pleased to close the first investment from BaltCap Private Equity Fund L.P. launched in December 2007,” said Peeter Saks, Managing Partner of BaltCap. “We believe the advertising and information directories sector has great growth potential in the Baltics and look forward to being part of this via our investment in Interinfo.”

 

“BaltCap is acquiring three market-leading companies, following the acquisition of Eniro’s companies in Estonia and Lithuania in 2005. The strong people, brands and databases under the management of experienced management teams, put Interinfo in an excellent position to benefit from the continued growth of the directional media sector in the Baltics”, said Magnus Sonnorp, Interinfo Group CEO. “We congratulate BaltCap on acquiring these three great companies, and wish them all the best for the future.”

 

Interinfo Holding SCA is owned by Texas Pacific Group, a leading global private investment firm.

 

EVLI Securities, formerly known as Suprema Securities, acted as an advisor to the selling shareholders in the transaction.

 

 

For additional information please contact:

Buyer contacts

Simonas Gustainis

Partner

BaltCap

Tel. +370 6 87 59 333

Email: simonas.gustainis@baltcap.com

www.baltcap.com

 

Seller contacts

Magnus Sonnorp,

President and CEO

Interinfo Holding SCA

Tel. +46 734 388388

Email:

magnus.sonnorp@interinfo.biz

www.interinfo.biz

 

Advisor contacts

Julijus Grigaliūnas

Head of Corporate Finance

EVLI Securities

Tel. +370 687 20108

Email:

julijus.grigaliunas@evli.com

www.evli.com