BaltCap, the largest private equity fund manager in the Baltics, has been granted a full alternative investment fund manager (AIFM) licence by the Estonian Financial Supervision and Resolution Authority (EFSA). The licence allows BaltCap to further internationalise its services, and engage new professional investors across Europe. BaltCap is the first dedicated PE house in Estonia to receive a full AIFM licence.
The AIFM licence signifies BaltCap’s transition from operating solely under the light supervision regime available for managers of small alternative funds (AUM under EUR 500 million), to operating as a fully- regulated and EFSA-supervised fund manager. This enables BaltCap to take advantage of the AIFM passport regime and provide its services, as well as market its funds cross-border throughout the European Union (EU). This positions the firm to tap into a broader network of investors seeking reputable and compliant private equity investment opportunities.
Maido Lillemets, Head of Legal and Compliance at BaltCap, explains that the AIMF licence is part of the EU’s regulatory framework designed to harmonise the oversight and operation of alternative investment fund managers in the EU. “Its requirements encompass various aspects, including risk management, reporting, investor protection, operational procedures, and capital requirements. Attaining this licence is a notable achievement that validates BaltCap’s adherence to these rigorous standards by the Estonian FSA. It serves in the best interest of ensuring the investors’ capital is in safe hands,” Lillemets says.
Martin Kõdar, Managing Partner at BaltCap, says gaining the licence marks a new stage of organisational and business growth for BaltCap: “BaltCap has witnessed remarkable growth in recent years. We have launched new investment strategies and attracted new investors, and we have broadened our target markets and helped our team to grow. Receiving the full AIMF licence is a mark of quality, which underscores our dedication to maintaining the highest levels of transparency, professionalism, and regulatory compliance as we continue to grow. Most importantly, it supports us on our mission to build regional companies into international business champions, and deliver exceptional investment solutions to our investors.“