To promote growth and development of Baltic SMEs and mid-cap companies, Luminor-managed pension funds in Latvia, Lithuania and Estonia have invested into a new private equity fund Raft Capital Baltic Equity Fund. Luminor’s total investment in the first closing of Raft Capital Baltic Equity fund has reached is 13.5 million euros.

Raft Capital Baltic Equity Fund is an alternative investment fund whose strategy envisages investments in small and medium-sized companies with growth or expansion potential across the Baltic states.

“The experience and achieved results of the The Raft Capital team in the field of investment and focus on sustainability are in line with Luminor’s long-term goals in increasing the value of pension funds. With this investment, we are participating in providing financial capital to Baltic companies, helping them to grow and achieve their desired goals, thus contributing to the growth of the Baltic region as well,” says Atis Krūmiņš, Head of Luminor Asset management and pensions for the Baltics.

The size of the fund after the first closing is 50 million euros and the term is 10 years with a possibility to extend for two more years.

Raft Capital aims to invest and grow companies in the Baltics that are looking for a change of ownership or smaller family-owned businesses that require capital for further development. Raft Capital is a generalist investor, targeting multiple industries with clear growth drivers, and looking for companies with unique attributes. Those companies are leaders in small niche markets, innovators in mature markets, proprietary technology holders, companies that have scalability potential through export.

In its operation, the fund will follow the principles of sustainability and fair business. Raft Capital Baltic Equity Fund is classified as an Article 8 SFDR or a “light green” fund which means it promotes that promote environmental or social characteristics in its operations. Raft Capital commit to follow principles of UN Principle of Responsible Investing and UN Global Compact and adopt the Invest Europe’s Handbook of Professional Standards.

About Luminor Pension Funds

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 1.8 billion euros and offer their clients a choice of more than 29 pension funds.