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BaltCap to create EUR20m risk capital fund for Lithuanian SMEs

BaltCap has attracted private fundraising for the first ever risk capital fund to invest into Lithuanian SMEs.

It forms part of the European Investment Fund managed Jeremie Holding Fund initiative in Lithuania.

The fund will result in EUR20m being invested into Lithuanian micro, small and medium enterprises.

It will focus on expansion financing of SMEs with established operations and growth potential taking equity stakes of up to EUR3m with the aim to build a diversified portfolio of seven to 15 investments selected by the management team of BaltCap.

The fund consists of EUR14m provided by the Jeremie Holding Fund and EUR6m raised from institutional investors, including SEB Venture Capital, LHV Asset Management, Swedbank Asset Management and DnB Nord Asset Management.

Richard Pelly (pictured), chief executive of the European Investment Fund, says: "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.”

Simonas Gustainis, partner of BaltCap, adds: “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.”

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