SEB pension fund asset management companies in Latvia, Lithuania and Estonia have teamed up with the leading private equity firm in Baltics BaltCap to invest EUR 16.26 million of pension fund assets in developing Baltic companies through BaltCap Private Equity Fund II (BPEF II), head of corporate communication at SEB Martins Panke informs BC.
SEB bankas
© DELFI / Šarūnas Mažeika

SEB Wealth Management Latvia will commit EUR 5.06 million for this purpose with the Estonian company committing EUR 5.7 million and Lithuanian company – EUR 5.6 million. The total amount of investment in the second close on BPEF II will reach EUR 22 million, bringing the total fund size to EUR 81.5 million.

CEO of SEB Wealth Management Latvia Jānis Rozenfelds says: “We have chosen an efficient solution to invest pension funds accumulated by the Baltic people back into Latvian, Lithuanian and Estonian economies and ensure that these assets work on behalf of Baltic communities. By investing in the most innovative companies with highest potential for growth we will both ensure high returns for our pension plan members and directly foster the growth of Baltic companies.”

BPEF II makes equity investments in innovative companies based in the Baltic region with a potential of international competitiveness, focusing on buy-and-build opportunities that offer the potential for BaltCap to capitalise upon the unique Baltic market opportunity. BPEF II will seek to acquire controlling ownership stakes, typically investing between €5 and €10 million per portfolio company. BaltCap will act as an active medium term investor partnering with management teams in order to build market leading companies in their respective sectors.

After this transaction the total amount of pension capital reinvested in Baltic economies by SEB banks in Latvia, Lithuania and Estonia will reach EUR 275 million. SEB Latvia has reinvested in Latvia's economy EUR 182.91 million in pension capital and additional EUR 4.4 million in Lithuania and Estonia. SEB Estonia has reinvested in Estonia's economy pension capital of EUR 8.5 million and EUR 4 million in other Baltic states. SEB Lithuania has reinvested in their respective economy pension capital of EUR 56.5 million and another EUR 1.1 million in Latvia and Estonia.

SEB Wealth Management Latvia manages six pension plans. More than 287 thousand people from Latvia have entrusted their pension funds of EUR 439 million to SEB. SEB Active plan is the second largest pension plan in Latvia in terms of number of participants – 116 thousand people have chosen this pension plan and its assets exceed EUR 185 million.

BaltCap team has a track record of successful investments in companies like Primekss – a company specialising in laying innovative concrete floors, liquid crystal display producer Eurolcds, retail chain Depo, mobile communications company ZetCom, IT company Vendon and other successful companies in Latvia.

Current participants in BPEF II include the European Investment Fund, represented through Baltic Innovation Fund, the governments of Latvia, Lithuania and Estonia acting through their respective national agencies as well as the European Bank for Reconstruction & Development. BPEF II has received commitments from all larger Baltic pension funds including Danske Capital, Swedbank Investment Funds and LHV Asset Management.

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