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BaltCap to establish EUR30m fund with financing from EIF

BaltCap, a private equity and venture capital firm focused on the Baltic States, has signed an agreement with European Investment Fund for the establishment of a EUR30m venture capital fund.

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 the Baltics since the economic crisis hit the region.

Aggregate available financing to Latvian micro, small and medium enterprises will be up to EUR30m.

The fund will provide start-up and expansion financing to companies with established operations and growth potential taking equity stakes between EUR0.3m and EUR3m with the aim to build a diversified portfolio of 15 to 20 investments.

The EUR30m fund will consist of EUR20m provided by the EIF managed Jeremie Holding Fund and EUR10m raised from 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, says: "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.”

BaltCap partner Dagnis Dreimanis (pictured) adds: “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.”

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