INVL Private Equity Fund II Acquires Major Stake in EKT

INVL Private Equity Fund II to Acquire Major Stake in EKT

INVL Private Equity Fund II, known as the largest private equity fund in the Baltics and part of the Invalda INVL group, has taken a significant step forward by signing an agreement to acquire a 75% stake in Eesti Keskkonnateenused (EKT), which is recognized as Estonia’s premier waste management group.

Transaction Details and Implications

The completion of this transformative transaction is anticipated by the end of 2025, contingent upon receiving approval from the Estonian Competition Authority and fulfilling the other necessary conditions outlined in the agreement. Current shareholders of EKT, predominantly its management, will hold onto the remaining 25% stake.

EKT’s Comprehensive Waste Management Services

The EKT group is renowned for offering an extensive array of waste management and municipal services. Their services encompass the collection and processing of household waste, the handling of secondary raw materials, construction waste, hazardous waste, bio-waste, and even street cleaning. In the last recorded fiscal year, EKT generated a consolidated revenue of EUR 77 million and employed around 800 dedicated individuals.

Growth and Development Opportunities

According to Argo Luude, the CEO of EKT, the involvement of the largest private equity fund in the Baltics will open up new avenues to effectively execute their growth strategy. Currently, EKT is embarking on a significant hazardous waste incineration project, which is expected to dramatically increase their capacity from 2,000 to an impressive 15,000 tonnes annually. They also envision expanding their sorting and recycling capabilities, thereby making a more substantial contribution to Estonia’s circular economy objectives.

Insights from INVL Private Equity Fund II

Vytautas Plunksnis, a partner at INVL Private Equity Fund II, emphasized their extensive experience in the waste management sector and their goal to enhance corporate leadership. The collaboration with EKT’s management team is seen as a crucial step towards advancing the company's growth.

Deimant? Korsakait?, Managing Partner at INVL Private Equity Fund II, highlighted that this investment aligns with one of the fund's core investment themes—targeting leading companies in the Baltic region that demonstrate significant growth potential. This marks the inaugural investment of INVL’s private equity funds in Estonia. Investing in and nurturing the circular economy is critical for fostering sustainable growth across the Baltic region, according to Korsakait?.

Advisory Roles in the Acquisition

For this acquisition, the buying entity received advice from several reputable firms: EY conducted financial due diligence, EY-Parthenon handled commercial due diligence, Sorainen provided legal counsel, and Nomine Consult worked on environmental due diligence. On the flip side, the sellers were supported by Eversheds Sutherland as legal advisors.

INVL Private Equity Fund II’s Broader Mission

The current portfolio of INVL Private Equity Fund II includes nine companies through its predecessor, the INVL Baltic Sea Growth Fund, established in 2019. Notably, it includes Eco Baltia, the leading environmental management group in the Baltics.

INVL Private Equity Fund II is strategically positioned to pursue lucrative opportunities across not only the Baltics but also Poland, Romania, and the wider EU market. Their strategy involves investing between EUR 10 million and EUR 60 million in businesses across various sectors that possess the potential to rise as regional leaders. Their primary approach is to acquire majority or substantial minority stakes while actively managing investments to foster long-term value generation.

About INVL Private Equity Fund II

This fund, which saw its first closing in February 2025 at EUR 305 million, aims to build a diversified portfolio by acquiring significant stakes in high-growth enterprises. The fund’s focus is directed toward businesses capable of thriving amidst growing global competition, specifically looking at investment opportunities within the Baltic nations, Poland, Romania, and the broader European Union.

Managed by INVL Asset Management, a leading alternative asset manager in the Baltic region, the INVL Private Equity Fund II brings over three decades of expertise in the financial sector. Their management companies oversee a staggering EUR 2 billion in assets across multiple investment strategies, encompassing private equity, forestry, agricultural land, renewable energy, real estate, and private debt. Additionally, they deliver family office services across Lithuania, Latvia, and Estonia, manage pension funds in Latvia, and invest in numerous global third-party funds.

Frequently Asked Questions

What is INVL Private Equity Fund II?

INVL Private Equity Fund II is the largest private equity fund in the Baltics, focused on investing in high-growth companies.

What stake is INVL acquiring in EKT?

INVL is acquiring a 75% stake in Eesti Keskkonnateenused (EKT), Estonia's largest waste management group.

What are EKT's primary services?

EKT offers various waste management services, including waste collection, processing, recycling, and municipal services.

How does this acquisition align with INVL’s strategy?

This acquisition is part of INVL's strategy to invest in leading Baltic companies that have significant growth potential, enhancing their portfolio.

What is the financial backing of INVL Private Equity Fund II?

The fund held its first closing at EUR 305 million and continues to seek investments in various sectors.

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