To promote growth opportunities for Baltic companies, Luminor-managed pension funds in Latvia, Lithuania and Estonia have supported Livonia Partners, one of the largest private equity investment managers in the Baltics, by investing 15 million euros in the second closing of Livonia Partners Fund II. A significant part of Livonia Partners Fund II is planned to be invested in companies addressing climate change and environmental sustainability.
“The investment experience and track record of the fund’s management team, as well as its focus on sustainability, is in line with Luminor’s focus on increasing the value of long-term pension funds. We want to increase the opportunity for Baltic companies to access finance and realise their development goals, thus contributing to the growth of the entire Baltic region,”
says Atis Krūmiņš, Head of Asset management and pensions for the Baltics at Luminor.
Livonia Partners Fund II is classified as an Article 8 or “Light Green” fund under the EU’s new Sustainable Finance Disclosure Regulation. The fund is backed by a number of institutional investors such as Baltic and Nordic pension funds, international institutions, and private investors. Many investors in Livonia Partners Fund I continue to invest in Livonia Partners Fund II, which has also attracted new investors.
Livonia Partners Fund II has a total size of 157 million euros and commits to invest at least 10% of its capital in projects that address climate change and environmental sustainability, as well as contribute to the well-being and health of society. Livonia Partners is also continuously developing its sustainability strategy.
“We help Baltic companies to grow faster organically or strategically through acquisitions, as well as to identify and implement projects with a positive environmental impact. We are grateful for Luminor pension funds joining our investor base,”
says Livonia Partners partner and co-founder Kristīne Bērziņa.
Livonia Partners primarily invests in small and medium-sized enterprises in the Baltic region and beyond with strong growth potential. The value of the company is typically between 10 million and 100 million euros. The main areas of investment for the first fund were specialised manufacturing, as well as technology, media, and telecommunications. The investment aimed to help companies take a major step in their development to become global leaders in their segment.
Since the inception of the first fund in 2015, Livonia Partners has completed 21 investment transactions, building a portfolio of Baltic and Nordic companies with more than 2 400 employees and total revenues in excess of 400 million euros.
The manager of Livonia Partners Fund II is registered in Latvia and its activities are regulated by the Latvian Financial and Capital Market Commission.
Luminor is one of the largest pension managers in the Baltics with modern second and third pillar pension solutions. Luminor Group companies in Estonia, Latvia and Lithuania manage pension assets of 1.5 billion euros and offer their clients a choice of more than 25 pension funds.