INVL Group Launches Record-Breaking Private Equity Fund

INVL Group's Major Achievement in Private Equity

Invalda INVL Group has made headlines by successfully concluding the first closing of its second-generation private equity fund, INVL Private Equity Fund II. This ambitious fund has raised EUR 305 million, exceeding its initial target of EUR 250 million, and setting a new standard in the private equity landscape of the Baltics.

A Diverse Investment Base

The success of INVL Private Equity Fund II is attributed to the robust backing from both new and existing investors. This remarkable investor base includes successful entrepreneurs from the Baltics, family offices, and institutional investors such as the European Investment Fund, Luminor-managed pension funds, and UAB SB Draudimas, a life insurance company. The fundraising efforts are expected to continue until reaching a hard cap of EUR 400 million.

Flexible Investment Options

The INVL Private Equity Fund II sets a minimum investment threshold at EUR 10 million, but also offers the option for smaller investors to engage through the INVL Private Equity Capital Fund II, where a minimum investment is just EUR 125,000. This inclusive approach has allowed the capital raised through this fund to total EUR 116 million.

Alignment of Interests

To ensure that their interests align with those of their investors, Invalda INVL and the management team of the fund have committed to investing EUR 32.7 million. This investment represents approximately 11% of the total fund size, showcasing confidence in the fund’s future success.

CEO's Insight on Fundraising Success

Darius Šulnis, the CEO of Invalda INVL, expressed his gratitude for the investors' trust, highlighting that this successful fundraising reflects confidence in their operations and the potential of the region's market. He stated that the INVL Private Equity Fund II will focus its investments on businesses across the Baltics and the broader EU, targeting those with the potential to become leaders in their sectors.

Growth Through Strategic Investments

The fund plans to actively manage investments in a diverse portfolio, primarily targeting sectors in Lithuania, Latvia, Estonia, Poland, Romania, and the wider EU. The goal is to back companies that show promise in their competitive arenas and drive value creation, with a focus on businesses ready for rapid growth.

A Commitment to Transformative Growth

Deimant? Korsakait?, Managing Partner at both the INVL Private Equity Fund II and the INVL Baltic Sea Growth Fund, emphasized the unique position of this fund in the Baltic region, calling it a historic milestone. She noted that they are not only committed to their investors but also prioritize working collaboratively with management teams to foster growth and deliver long-term value.

Investor Confidence Highlighted

Asta Jovaišien?, Head of the INVL Family Office, expressed pride in being part of this record-setting fund, underlining their office’s ability to meet the needs of investors seeking sustainable outcomes.

Investment Strategy Overview

The strategy for the INVL Private Equity Fund II mirrors that of its predecessor, the INVL Baltic Sea Growth Fund, by concentrating on significant growth opportunities across the Baltics and the EU. The fund is sector-agnostic, with plans to purchase majority or significant minority stakes in promising companies. It aims for investments typically between EUR 10 million and EUR 40 million, favoured at around EUR 25-30 million.

Strong Performance Expectations

Continuing on, Deimant? Korsakait? noted the success of their previous fund, which saw impressive returns, including a 25% net internal rate of return (Net IRR). The total value to paid-in capital (TVPI) exceeded 2x, demonstrating the competent management of capital and the strategic exits planned for portfolio companies.

About INVL Asset Management

INVL Private Equity Fund II, managed by the renowned INVL Asset Management, stands as the largest private equity fund in the Baltics. The firm boasts over 30 years of experience in managing assets worth more than EUR 1.6 billion. The team's expertise spans various investment strategies, including private equity, real estate, renewable energy, and agricultural ventures, as well as family office services in the region.

Frequently Asked Questions

What is the total amount raised by INVL Private Equity Fund II?

The fund successfully raised EUR 305 million, surpassing its target of EUR 250 million.

Who are the key investors in the fund?

The fund has attracted a diverse range of investors including entrepreneurs, family offices, and institutional investors.

What regions does the INVL Private Equity Fund II focus on?

It invests in businesses across the Baltics, Poland, Romania, and the broader EU.

What is the minimum investment required for this fund?

The minimum investment is EUR 10 million, though options exist for smaller investments through the INVL Private Equity Capital Fund II starting at EUR 125,000.

What is the experience of INVL Asset Management?

INVL Asset Management has over 30 years of experience in managing a variety of assets, making it a leading alternative asset manager in the Baltic region.

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