With the achievement of the private investment attraction target, company financing has been launched by the growth capital fund manager FlyCap. After the conclusion of the first subscription phase, the total size of the fund is 42 million euros, which over the next five years will be invested in promising and growing Baltic companies.
The fund’s financing consists of 24.8 million euros of public funding from the European Regional Development Fund and ALTUM, as well as 17 million euros attracted from private investors, including two Latvian pension managers – the Citadele bank subsidiary CBL Asset Management and Luminor, which is an important signal of investor confidence in the fund’s strategy and the potential of Latvian entrepreneurship. The FlyCap fund plans to attract a further 8 million euros for the fund to reach its final capital target of 50 million euros.
Reinis Bērziņš, Chairman of the Board of ALTUM: “Investments will be made in promising, viable growth-stage companies focused on exports, promoting the creation of new jobs, tax revenues, and overall development of the Latvian economy. The involvement of Latvian pension managers in the fund is especially important – it not only expands the opportunities of the local capital market, but also allows pension savings to directly participate in the growth of Latvian companies, generating a positive return both for the economy and for future pension recipients. We wish the team a strategically smart and dynamic investment period!”
The fund is part of the new European Union fund period growth-capital instruments, where total financing from ALTUM, the European Regional Development Fund and private investors reaches almost 100 million euros. The private equity fund FlyCap prefers investments in the healthcare, business services, technology and export-oriented sectors, paying particular attention to companies with strong growth potential.
Jānis Skutelis, Chairman of the Board of FlyCap, explains that the goal of FlyCap is to help Latvia’s growing companies develop faster and more efficiently by offering loans with flexible repayment schedules in the amount of 1–4 million euros with a term of 4–5 years. “The new fund will make it possible to provide financing to companies for investments, working capital and acquisition of equity stakes, supporting their growth and development,” he notes. “FlyCap loans are compatible with bank loans – it is possible to subordinate them to bank loans, thereby increasing the total amount of financing. A larger financing volume will help entrepreneurs gain a larger market share faster, thus outpacing competitors in their sector.”
Atis Krūmiņš, Head of Asset Management and Pension Companies in the Baltics at Luminor, highlights that FlyCap, with its experience and achievements in the field of investments, continues to promote company growth in Latvia and also in the Baltic region, while paying special attention to sustainable and responsible business solutions, which fully align with the strategic goals of the Luminor pension funds. “This investment provides new financing opportunities for local companies, helping them implement their growth and development plans while fostering innovation and sustainable business practices. Such an approach not only supports the growth of individual companies, but also contributes to Latvia’s long-term economic stability, innovation development and competitiveness in the international market.”
Zigurds Vaikulis, Investment Director at the Citadele bank subsidiary CBL Asset Management: “We made the decision to invest in the FlyCap fund after very careful assessment. In our view, the fund’s strategy and experienced team will ensure an attractive investment return for the participants of the pension plans entrusted to us and at the same time is in line with our mission – to invest as large a share of pension savings as possible meaningfully right here in Latvia. The 2nd pillar pension plans managed by CBL Asset Management – CBL Active and CBL Universal – will invest a total of 8 million euros in the FlyCap fund.”
FlyCap is an experienced growth-capital fund manager that has participated in managing previous generations of ALTUM co-financed funds, has been operating since 2013, and this is already its third fund. The total assets of the three funds managed by FlyCap, including the new fund, reach almost EUR 80 million. To date, FlyCap has already invested in 37 Baltic companies. FlyCap has invested in companies such as Mintos, Supliful, Visual Media, Priedes AG, HansaMatrix and Event Center.
Originally published at https://inc-baltics.com/flycap-augosos-uznemumos-investes-42-miljonus-eiro/
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