Baltic-based financial services provider, Luminor, has invested €18.35m in private equity investment fund INVL Private Equity Fund II, to support the growth and development of medium-sized companies in the Baltic States.

This investment is on behalf of the Estonian, Latvian and Lithuanian pension funds managed by Luminor.

The INVL Private Equity Fund II is a closed-end investment fund for informed investors and its strategy includes investments in the Baltics, Poland, Romania, and the wider European Union.

The size of the fund after the first financing stage is €305m and the term is 10 years, with the possibility of extending it by two years. The fund will invest at least 60 per cent of its assets in the Baltics.

The fund’s objective is to acquire control or significant minority stakes and active participation in the management of companies to significantly increase the value of the invested capital in the long term.

If the fund finds a suitable company to invest in, Luminor pension funds will buy shares in the same proportion as other investors.

Commenting, Luminor fund manager, Vahur Madisson, said: “With this investment, we can create additional financing opportunities for Baltic companies. We will help companies in our region grow and achieve their goals and thereby give impetus to the business environment in the Baltics in general.”

He added that the experience, track record, and value principles of the private equity investment team of Invalda INVL Group on sustainability are aligned with the long-term goals of Luminor.

The fund adheres to the principles of sustainability and fair business practices in its activities. It also discloses information under article eight of the European Union's Sustainable Finance Disclosure Regulation (SFDR) as the fund promotes environmental or social characteristics.

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