Baltic Post-Privatisation fund (closed in 2006)
The Fund was established in 1996 and closed in 2006 earning a solid return for the investor. The European Bank for Reconstructions and Development was the sole founder and owner of the fund. Total capital comprised 40 million USD dedicated for the investment in Lithuania, Latvia and Estonia. The Fund manager was Scandinavian Baltic Development Ltd.
Strategy of the Fund – invest to perspective companies with a lack of managerial experience and modern technologies. The main role of Fund managers was to share their own and external expertise with management and owners of portfolio companies. At the end of the Fund’s life to sell at maximum return to investors. The main investment principles – invest 2-5 million Euro per company primarily through new share issue, acquire up to 50% of share capital, sign a shareholder’s agreement with other main owners and actively participate in the Board of the portfolio company.
INVESTMENTS:
AB Alna
Date of investment: 2000
Exit date: 2004
Ownership: 14%
The leading information technology company in Lithuania. The Fund manager took the role of passive investor, because it was actively involved in the strategy formation of Sonex Group, the main competitor of Alna. Fund sold its share to the main owner of the company.
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Baltic Ice Group
Date of investment: 1998
Date of investment: 1998
Exit date: 2005
Ownership: 49%
The Group is the leading ice-cream production and frozen food distribution company in the Baltic. The Group consists of AB Kauno pieno centras (Lithuania) and Tallinna Kulmhoone AS (Estonia). The Lithuanian and Estonian companies merged in 1999 and then developed a strong network of Premia ice-cream production and frozen food distribution in the Baltic states. The Fund has exited its investment to foreign private equity fund Amber Trust.
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Microlink AS
Microlink AS
Date of investment: 2000
Exit date: 2005
Ownership: 3%
The leading information technologies company in the Baltic States. The fund manager has generated returns by exiting to the strategic investor.
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UAB Sonex group
UAB Sonex group
Date of investment: 2000
Exit date: 2005
Ownership: 35%
One of the leading information technology companies in Lithuania. Fund manager together with the founder of the company was actively involved in the strategy development of the Group. The company has been exited to Scandinavian private equity capital fund Askembla Growth Fund.
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Tallegg AS
Tallegg AS
Date of investment: 1999
Exit date: 2001
Ownership: 42%
The leading poultry production company in Estonia. Fund manager with the large help of an external expert of Scandinavian poultry market, helped the company to reorganise and modernise production process, develop and strengthen the company‘s brand name, and manage rapid sales expansion to foreign countries. The company was exited to Finnish strategic investor.
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AB Trinyčiai
Date of investment: 1998
Exit date: liquidated
Ownership: 22%
Cotton yarn producer in Lithuania. The Company met financial difficulties caused by the crisis in Asian markets and falling prices of yarn. After unsuccessful attempts to turnaround the Company shareholders decided to liquidate the company. Liabilities to creditors and employees were covered.
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AB Vilkma
Date of investment: 1997
Exit date: 2006
Ownership: 92%
Vilkma was the first Fund investment and required Fund manager‘s special attention. The main activity is production of high quality men’s shirts. The Fund manager together with several outside production and management professionals, went through several turnaround processes. The company gradually reorganised activities from the sale of its labour force to production of high quality men’s shirts. About 95% of production is sold in Western Europe. The Company was exited to Icelandic strategic investor.
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Utenos trikotažas
Date of investment: 1998
Exit date: 2004
Ownership: 29%
The leader of knitted underwear and outwear production in the Baltic. The Fund manager together with the main owner, SBA group, actively participated in the Company‘s management. The company‘s shares are traded in the main list of the Baltic Stock exchange. Shareholders earned investment return by the efficient restructurisation of the capital. The stake was acquired by foreign private equity capital fund Amber Trust.
