EIF commits €15 million to new corporate-financing fund of Latvian investment company Merito Partners
EIF's pledge comes from the Baltic Innovation Fund II, making it the first institutional investor in the ‘Merito Baltic Opportunities I AIF’ fund
Goal is to support growth of small and medium-sized enterprises in region
The European Investment Fund (EIF) is committing €15 million to a new corporate-financing initiative run by Latvian investment company Merito Partners to bolster the growth of small and medium-sized enterprises (SMEs) in the Baltic region. The pledge by the EIF comes from the from the Baltic Innovation Fund II, making it the first institutional investor in the ‘Merito Baltic Opportunities I AIF’ fund, which has a target size of €100 million.
The EIF contribution advances European Union goals to improve access to financing for SMEs in Estonia, Latvia and Lithuania. The new fund is targeted at fast-growing companies primarily in Latvia and Lithuania.
“Supporting the growth of SMEs across Europe and in the Baltic region is a central part of our mission,” said EIF Chief Executive Marjut Falkstedt. “Our commitment to Merito Baltic Opportunities I AIF underscores our determination to improve access to finance and thus promote innovation and economic growth, keeping our economies strong during difficult times.”
The new fund's management team consists of professionals with extensive experience in Baltic business funding transactions. The fund partners are Mikus Janvars and Andris Kotans from Latvia, and Audrius Mozuras from Lithuania.
"Fast-growing companies in the Baltic states often have limited access to non-dilutive funding,” said Mikus Janvars, the managing partner. “We are convinced that this investment strategy can provide significant returns to investors. The commitment of the EIF is a strong endorsement of our fund and the professionalism of our team. We are honoured and proud of the EIF's trust and commitment. We now shift our fundraising focus to other institutional investors."
