INVL Baltic Sea Growth Fund

The fund will seek to form a diversified portfolio of Baltic Sea region companies and will focus on growth capital, buyout, and "buy and build" investments.

 

The INVL Baltic Sea Growth Fund began operations on 26 June 2018 as a closed-end mutual fund intended for professional investors.

The fund will seek to invest in medium-size companies with an attractive risk-return ratio, providing them with capital for further growth. It will focus on acquiring controlling or significant minority stakes and will take an active role in the management of target companies, aiming to significantly increase their value over the long term.

The fund will seek to form a diversified portfolio of Baltic Sea region companies and will focus on growth capital, buyout, and “buy and build” investments. The fund’s target size after the distribution of its investment units is EUR 200 million and the maximum size is EUR 300 million.

The INVL Baltic Sea Growth Fund will make investments of EUR 10 million to EUR 30 million in mature companies that can compete on global markets and have big potential for growth in value. The focus will be on transactions bigger than those that private equity players in the Baltic countries undertake, but smaller than those that interest the largest international private equity and strategic investors.

The fund’s team draws on the experience that Invalda INVL has built up since 1991 in acquiring, reorganizing and growing leading companies in this region. The historical internal rate of return (IRR) on transactions that Invalda INVL has conducted in line with the new fund’s strategy was 27 per cent.

The INVL Baltic Sea Growth Fund aims to attract local and international investors. It is expected to be the biggest private equity fund in the Baltic countries and will contribute to the region’s growth and development.

The managers of the INVL Baltic Sea Growth Fund will seek to complete 3-5 investments within the first two years of the investment period, and later will focus on expansion. The total portfolio may comprise 8-12 investments. The planned life of the fund is 10 years from the initial closing.

Decisions on which companies the fund invests in will be made by an investment committee. At the start of the fund’s operations, the committee will be composed of the founding partners in what is seen as one of the strongest private equity teams in the Baltics, with solid experience. Most of its members have been working together for more than a decade. They include: Alvydas Banys, Darius Šulnis, Ashwin Roy (a former partner at the U.S. venture capital firm CVCI who in the Baltic countries carried out investments in Sanitas, Iki, and Tallink), Deimantė Korsakaitė, Vidas Venckus, Nerijus Drobavičius, and Vytautas Plunksnis. The team’s combined experience includes EUR 500 million invested and EUR 1.2 billion returned to investors.

In order to maximally align investors’ and asset managers’ interests, Invalda INVL and all the members of the team will invest amounts that are significant to them in the fund – altogether EUR 20 million. The exact amount of money to be invested in the fund by Invalda INVL will clear after the signing of binding agreements. Funds may be called upon throughout the investment period – during five years from the end of the initial fund-unit distribution phase.

 

When investing, you assume the investment risk. Past results do not guarantee future performance. Investments can be both profitable and loss-making: You may recover less than you invested. The management company does not guarantee the profitability of investments.

The INVL Baltic Sea Growth Fund is intended for professional investors, i.e., for persons who meet the criteria for a suitable transaction party or professional client set out in the Republic of Lithuania Law on Markets in Financial Instruments.

Only persons who meet the criteria for a professional investor may acquire units of this fund, and investors’ right to demand redemption of investment units they hold by this closed-end fund is restricted.

Before making a decision to invest, you should on your own or with the help of investment advisors assess the selected fund’s investment strategy, applicable fees, and all investment-related risks, and carefully read the fund’s rules, information memorandum, and other information associated with the distribution of this collective investment undertaking. You can obtain these documents, if you meet the above-specified requirements for investors of the fund, by contacting INVL Asset Management UAB.

All the information presented is of a promotional nature and cannot be construed as a recommendation, offer or invitation to invest in the funds managed by INVL Asset Management. The information provided cannot be the basis for any subsequently concluded agreement. Although the content of this information of a promotional nature is based on sources considered to be reliable, the company is not responsible for inaccuracies or changes in the information, or for losses that may arise when investments are based on this information.