Baltic businesses to get €100 million financing boost as EIF backs new Merito Partners fund

• 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 Kotāns from Latvia, and Audrius Mozūras 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."

Background information 

Merito Partners is a rapidly growing private investment company operating in Latvia and the New Nordics. It implements growth capital, sustainable energy, specialized real estate and corporate financing investment strategies on behalf of Baltic and international institutional investors. Merito Management AIFP, 100% owned by Merito Partners, is registered with the Bank of Latvia as an alternative investment fund manager. More information on the investment strategies implemented by Merito Partners is available here.

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more. 

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Press contacts

EIF: Kristiina Randmaa

M. +352 4379 72894, e-mail:  k.randmaa@eib.org 
Website: www.eif.org — press@eib.org 

Merito: Agnese Ruberte

Merito Partners Communication Consultant

M. +371 29337759, e-mail: pr@meritopartners.com