OREANDA-NEWS. July 30, 2014. The pension funds managed by SEB in Estonia, Latvia and Lithuania are investing EUR 16.36 million in the enterprises of the Baltic states through the BaltCap Private Equity Fund II (BPEF II).

“Investment in Baltic enterprises has always been an interest of our pension funds, but we have been missing efficient and secure opportunities to do so. This is why I am happy that in cooperation with such a professional and experienced private equity firm like BaltCap we have been able to increase our investments in the high-quality enterprises of the Baltics. As investment opportunities on the Baltic equity markets are still very limited, we believe that the participation of pension funds on the over-the-counter market will give our investors a better risk-to-profitability ratio.  At the same time, it will create new future opportunities for equity markets and improves the economic outlook of all three countries,” said Sven Kunsing, head of Eastern European investments at SEB Varahaldus.

BPEF II invests in mid-sized enterprises of the Baltic region which have good growth potential, with the main focus on buy-and-build transactions. In general, BPEF invests EUR 5–10 million with the aim of increasing the enterprise’s activities significantly as its active owner. The previous successful investment of the BaltCap team are, for example, Quattromed, Estonia’s leading provider of medical lab services, Air Maintenance Estonia, a company providing maintenance services for aircrafts, TREV-2 Grupp, an infrastructure enterprise, as well as a number of other successful Estonian companies.

Out of the investment that totals EUR 16.36 million, 5.7 million comes from the pension funds of SEB Estonia while the contribution of the pension funds of SEB Latvia and Lithuania is 5.06 million and 5.6 million, respectively. As a result of this investment, the total investments made from the pension funds of SEB Baltic into the enterprises of the Baltic state reach EUR 275 million.

BaltCap is a leading private and risk capital enterprise in the Baltics that invests in growth-oriented Baltic companies and finances buyouts. BaltCap has offices in all three Baltic states. As of today, BaltCap has managed several investment funds with the total volume of EUR 260 million and made more than 60 investments.