IPO fund

Invitation to Become the Fund Manager for the Financial Instrument “Baltic Capital Market Acceleration Fund” (BCMAF)

Latvia’s “Attīstības finanšu institūcija Altum” AS (ALTUM) and UAB “Investicijų ir verslo garantijos” (INVEGA) invite applications for the role of fund manager for the new financial instrument “Baltic Capital Market Acceleration Fund” (BCMAF).

The total fund volume is planned to be EUR 48.78 million, with EUR 20 million contributed by ALTUM, EUR 18.78 million by INVEGA, and EUR 10 million to be raised by the fund manager.

The selected fund manager, together with private market participants, will invest in SMEs, small, and innovative mid-sized companies with enterprise values ranging from EUR 5 to 100 million. These companies are expected to be located in Lithuania, Latvia, and other EU regions.

Applications must be submitted electronically by 30 August, 2024, at 23:59, to ipo@altum.lv or equity@invega.lt.

For detailed information on selection criteria, documentation requirements, and application declarations, please refer to the provided link.

Lithuanian and Latvian National Promotional Institutions “Investicijų ir verslo garantijos” (INVEGA) and AS “Attīstības finanšu institūcija Altum” (ALTUM) have announced the results of the public consultation on the terms and conditions for the selection process of the Financial Intermediary of the newly planned venture capital instrument “Baltic Capital Markets Acceleration Fund” (Fund).

We are delighted to have received a total of 62 comments, suggestions and remarks from the market participants. Representatives from all the Baltic countries have shown their interest in the financial instrument we are currently developing.
 
Please see below a short summary of comments, suggestions and remarks we have received. It is expected, that BCMAF will now:

i) Be able to invest in publicly listed bonds (IBOs). Fund is also limited to investing no more than 40% of the total invested amount. Fund is prevented from investing in RE bonds.
ii) Be able to invest in secondary market opportunities if the initial investment was made before or at the time of an IPO/IBO.
iii) Once the investment targets in Lithuania and Latvia have been met, the Fund will invest the remaining available funds at the EU level.
iv) Implementation of other changes necessary for the successful operation of the Fund.

Here is the link to a full document.

An Invitation to provide commentry on the Open Call for Expression of Interest selection criteria for the “Baltic Capital Markets Acceleration Fund”

Lithuanian and Latvian National Promotional Institutions “Investicijų ir verslo garantijos” (INVEGA) and AS “Attīstības finanšu institūcija Altum” (ALTUM) invite to provide their comments on the conditions for the selection process of the Financial Intermediary of the newly planned venture capital instrument “Baltic Capital Markets Acceleration Fund”.

“Baltic Capital Markets Acceleration Fund” will be targetting SMEs and small, innovative mid-cap companies operating in the Lithuanian and Latvian markets, which are planning for a near-term listing on a Baltic stock exchange.

Open call for expression of interest: https://invega.lt/en/doclib/sb185cinv4ptkwduny6vc54xrfmbcbtq

Comments are welcome up to and including 9 February, 2024 at  equity@invega.lt.

Information:

On 13 June 2023, the Latvian Government approved the creation of the Baltic SME IPO Fund (IPO Fund), which will be established together with the Lithuanian development financial institution INVEGA.

• The objective of the Baltic SME IPO Fund (Capital Market Development Acceleration Fund or CMDAF or IPO Fund) is to enhance the availability of financing for SMEs and Small or Innovative mid-caps in Baltics.
• The aim is to accelerate the development of the Baltic overall public market funding ecosystem while catalyzing private investor flows.

The total financing of the Fund is EUR 50 million, of which ALTUM and INVEGA will invest EUR 20 million each, but EUR 10 million will have to be attracted by the Fund manager, that will be selected in Open call for expression of interest process and in accordance with the principles of transparency, non-discrimination, fair competition and respecting the best practices as well as observing the requirements of confidentiality and impartiality.

• The IPO Fund will participate in initial public or private offerings related to both the main (regulated) market (at Nasdaq Baltic) and the alternative market (First North), as well as will invest in private pre-listing stage Baltic companies with a clear intent to list on the aforementioned venues in a reasonable period of time (indicatively 12-18 months) with agreed roadmap.
• The Fund will target established commercially viable SME companies with valuation between EUR 5-100 million.
• Depending on the specific project, the investment amount in one company is planned from EUR 0.4 to 5 million, on average EUR 2-3 million. The IPO fund will invest up to 50% of the deal amount.

On 16 August 2023, ALTUM signed the Memorandum of Understanding with INVEGA, committing to launch the public selection of the Fund manager by the January 2024 and to announce the Fund manager by May 2024.

More on creating the Fund https://www.fm.gov.lv/en/article/government-currently-examining-report-establishment-and-financing-initial-public-offering-fund-small-and-medium-sized-baltic-enterprises