Swedbank Ieguldîjumu Pârvaldes Sabiedrîba, SEB Venture Capital and LHV Varahaldus have joined as investors to the BaltCap Latvia managed venture capital fund.
In total the BaltCap fund has attracted seven private sector institutional investors.
The other four are Parex Asset Management, Hipo Fondi, LKB Krâjfondi and Pirmais Slçgtais Pensiju Fonds.
Harijs Ðvarcs, head of Swedbank IPS, says: “This is an exceptional opportunity for participants of our pension plans to earn together with fast growing and perspective Latvian companies. Thanks to BaltCap’s local market knowledge and experience, as well as the European Investment Fund’s financing, favourable conditions have been established for high investment return. This is an excellent example how EU’s structural funds in combination with local pension funds’ financing can successfully facilitate growth of entrepreneurship in Latvia via developing competitive products and generating new working places.”
“We are pleased for the high interest attracted from investors to the BaltCap’s venture capital fund for financing of Latvian companies. In addition to EU structural funds we have managed to attract largest Baltic level pension fund managers, other institutional investors and high net worth individuals, which in our view shows investors’ trust in future growth of the Latvian economy,” says BaltCap partner Dagnis Dreimanis (pictured).
On 22 January 2010, BaltCap signed an agreement with the European Investment Fund for private fundraising under the EIF managed Jeremie initiative in Europe.
BaltCap will provide financing of EUR30m to SMEs in Latvia.
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 transactions in the EU under Jeremie initiative 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.”
