Invalda INVL's Commitment of €30.8M to Private Equity Fund II
Invalda INVL Invests Significantly in Private Equity
Invalda INVL recently made headlines by signing a significant subscription agreement for the INVL Private Equity Fund II. This strategic decision involved a commitment of €30.8 million, which constitutes 10% of the overall size of the fund. Managed by UAB INVL Asset Management, a firm fully owned by Invalda INVL, this closed-end private equity fund is designed for informed investors. The ultimate goal is to amass a total of €400 million through continued fundraising efforts.
Fundraising Goals and Performance
Successful Initial Closing
The first closing of the INVL Private Equity Fund II was successfully completed, raising €305 million—surpassing its initial target of €250 million. This fund represents the next generation of private equity investment within the Invalda INVL group, and it builds upon strategies that have been effectively implemented by the INVL Baltic Sea Growth Fund, which has been operational since 2019.
Strategic Commitments
Upon entering the partnership agreement and investing in INVL Private Equity Fund II, Invalda INVL has pledged not to invest in assets that do not align with the fund's strategy, similar to the approach taken with the INVL Baltic Sea Growth Fund. This commitment reflects a focused investment strategy designed to leverage existing expertise and resources.
Management Fees and Expected Returns
Investing in INVL Private Equity Fund II also positions Invalda INVL to potentially receive a share of future returns, specifically the success fee on investments made. The management company is set to receive a management fee based on the total capital commitments, capped at 17% throughout the fund's lifespan. This aligns the interests of both the investors and the management team, ensuring a commitment to maximizing returns.
Assessment of Investment Impact
As of now, assessing the impact of the investment in INVL Private Equity Fund II on Invalda INVL's overall results remains challenging. However, the predecessor fund, INVL Baltic Sea Growth Fund, achieved a remarkable net internal rate of return (IRR) of 25% in its last valuation, with a total value to paid-in capital (TVPI) exceeding 2x. It's important to keep in mind that these historical performances are not necessarily indicative of future results and profitability.
Contact Information
For additional inquiries regarding this investment and its implications, Darius Šulnis, the CEO of Invalda INVL, is available for contact at darius.sulnis@invl.com.
Frequently Asked Questions
What is the total investment amount made by Invalda INVL in the fund?
Invalda INVL has committed to investing €30.8 million in the INVL Private Equity Fund II.
How much did the fund raise in its first closing?
The fund successfully raised €305 million at its first closing, exceeding its initial target of €250 million.
What is the management fee cap for the fund?
The cap on the management fee paid to the management company over the life of the fund is set at 17% of total capital commitments.
What is the expected return from the investment?
While specific future returns cannot be guaranteed, Invalda INVL may receive a pro rata share of the success fee based on the fund's performance.
How does the new fund compare to the predecessor fund?
The predecessor, INVL Baltic Sea Growth Fund, achieved a 25% IRR and a TVPI over 2x, showcasing a strong performance, although past results do not guarantee future profitability.
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