Private equity fund to help Baltic SMEs grow
One of the greatest hurdles to the growth of small and medium-sized enterprises (SMEs) in the Baltics is the dearth of private equity financing. To help spur the development of a private equity ecosystem in the region, the EBRD signed a €17 million participation in the Livonia Partners Fund I, which provides equity and quasi-equity financing, principally for SMEs, in Estonia, Latvia and Lithuania.
The first regional fund to be domiciled in Latvia, it will provide growth and acquisition capital to companies across a variety of sectors to help them become attractive acquisition targets ready for their next stage of development. The Fund will also enable Bank financing to reach firms at the smaller end of the SME scale.
This is the third EBRD project signed under the Integrated Approach for the Further Development of the Venture Capital and Private Equity Ecosystem in the Baltic States (the Baltics IA). The Baltics IA aims to further advance the development of the venture capital and private equity sector in the region, thereby making equity and quasi-equity financing available to small and medium-sized businesses at all stages of growth.