Opportunity

According to European Central Bank data, the SME debt gap in Lithuania exceeds 2% of GDP (the annual deviation of new loans in Lithuania from the Eurozone median during 2018-2022).

Reliability

The effectiveness of the strategy has been proven since 2021, with investors realizing a 11.3% annual return (IRR) before the fund’s success fee.

Diversification

Private debt allows diversification into debt instruments traditionally held by banks and segments not yet publicly traded.

Risk Management

The fund’s team implements strict risk management to balance investor safety and project sustainability. Most projects are secured by primary asset collateral, with financing aimed at increasing the liquidity of this asset. If primary asset collateral is unavailable, the fund becomes a shareholder of the company until the redemption date of the bonds. Diversification principles are also crucial in the fund’s strategy, reducing overall portfolio risk and ensuring stability of investor returns in times of economic fluctuations.

Advantages of Fund Structure

Investors are granted the right to redeem fund units after 21 months from the initial investment.

Type and Form

Open-ended AIF for informed investors.

Strategy

Direct investments in private company debt – various debt instruments issued by Baltic companies (bridge financing, mezzanine loans, etc.) and special situations where companies require urgent financing.

Region

Baltic countries.

Start Date

May 31, 2021

Duration

Indefinite

Planned Size

EUR 30 million