Lithuanian VC firm Raft Capital Management launches €50M fund for Baltic companies

Raft Capital, a Vilnius-based investment fund set up by private equity fund manager Raft Capital Management, has launched its fresh €50 million fund to invest in companies across the Baltic States. The fund will also look for acquisitions in the Nordic countries and Poland.

About Raft Capital

  • Raft Capital invests in growth and expansion-stage companies across the Baltic States. It is a generalist investor, targeting multiple industries. The management team of Raft Capital Management is licensed by the Bank of Lithuania to engage in investment activities, and includes Artūras Gegužis, Andrejus Boicovas, Gintautas Galvanauskas, and Imre Visse (Estonia).
  • According to Artūras Gegužis, the fund focuses on small and medium-sized firms in the Baltic region that growing. These include manufacturing companies that export, companies that innovate and create new products, service providers, and other businesses.

The fresh €50 million fund

  • Raft Capital plans to invest between €2 and €10 million per company. The fund also claims these businesses should have sales of between €3 and €50 million and EBITDA of between €500,000 and €5 million.

Our primary investment region, the Baltic States, is seeing economic growth above the EU average, but there are less chances for business expansion due to a shortage of equity capital sources. Furthermore, in order to attain sustainable long-term growth and draw in the interest of reputable strategic and financial investors, the majority of Baltic enterprises must move into larger export markets,

Artūras Gegužis stated.
  • In addition, Raft Capital would also consider investing in companies in the Nordic countries and Poland if these investments had clear synergies and benefits for the portfolio companies.
  • Through Raft Capital Baltic Equity Fund, investments are made by the European Investment Fund, INVEGA, pension plans administered by Luminor investment management companies in Lithuania, Latvia, and Estonia, and other private investors.

In the future, Raft Capital also plans to launch the fund’s second round looking for additional €20-30 million.