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BaltCap completes investment in building systems solutions provider

BaltCap, the largest private equity and venture capital investor in the Baltic countries, has invested in Ygle, the leading provider of building systems solutions in Lithuania, acquiring 60% of the company.  

Ygle is the leading provider of design, installation and maintenance services of technical building systems in Lithuania. With more than 200 employees, the company has offices in five cities across Lithuania. Ygle provides services mainly for the office, retail, industrial and other special purpose buildings which require complex HVAC and other engineering solutions.
“We are pleased to choose BaltCap as our partner and believe that their experience, pan-Baltic coverage and hands-on approach will be great assets to the company. BaltCap’s investment should accelerate our growth in building systems maintenance business and help us to capitalise on improving market conditions” says Vytautas Ðniukðta, Founder and Chairman of Ygle.
Kornelijus Celutka (pictured), Investment Director at BaltCap, says: “Ygle’s deep expertise and track record in complex engineering systems combined with its solid brand gives the company a very strong competitive position. The rising energy costs are turning into a major concern for building operators and Ygle could address this issue successfully by providing innovative and cost-effective solutions." 
Along with the new equity investment by BaltCap, Ðiauliø bankas will provide a new loan facility to Ygle. Equity investment combined with a new loan from Ðiauliø bankas should enable the company to finance working capital needs and accelerate its organic growth.
CEO of Ðiauliø bankas Audrius Þiugþda, says: “Our support for Ygle demonstrates Ðiauliø bankas’s strong commitment to Lithuanian SMEs and our willingness to finance strong teams of entrepreneurs. We are very pleased to work along with BaltCap.”
BaltCap operates in the Baltic states since 1995. Lithuania SME Fund is a growth capital fund organized by BaltCap in 2010 as part of the JEREMIE initiative in Lithuania. JEREMIE Holding Fund in Lithuania managed by the EIF is financed from the EU Structural Funds under 2007-2013 Economic Growth Operational Programme. Total size of Lithuania SME Fund is EUR 20m, EUR 14m of which is provided by JEREMIE Holding Fund and EUR 6m by leading Baltic financial institutions, including SEB Venture Capital, asset management companies of LHV, Swedbank and DnB. The Fund provides growth equity financing for small- and medium-sized enterprises based in Lithuania up to EUR 3m per company.
Vice-minister of Economy of Lithuania Daumantas Lapinskas, says: “We are observing the increased activity of the venture capital market participants in Lithuania, which was inspired by the launch of the state supported funds. We hope this process will gain momentum and continue to support innovative, fast growing enterprises both in turnaround or growth stages and, increasingly, in early stage initiatives. The state will continue to develop and provide resources and instruments for that purpose.”
Graham Cope, Head of Region of European Investment Fund, says: “This investment into Ygle is the first transaction from BaltCap’s Lithuania SME Fund established with our cornerstone investment from EIF. It clearly illustrates that the government support of the JEREMIE Holding Fund activities is delivering the right impact to vibrant companies with strong prospects for the future.”
This will be the second investment by BaltCap in Lithuania this year. In January 2011, BaltCap Private Equity Fund has acquired more than 90% of Kelprojektas, the leading transport infrastructure engineering company in the country.
Over the next two years, BaltCap is expected to invest over 200 million Litas in Lithuania and other Baltic States.

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