Lithuania's ILTE and Latvia's ALTUM establish Baltic Capital Markets Acceleration Fund worth €50M

Lithuania’s development bank ILTE and Latvia’s ALTUM have established the Baltic Capital Markets Acceleration Fund under the management of 1 Asset Management with total capital of over €50M.

The goal of the Baltic Capital Markets Acceleration Fund is to finance Baltic companies valued at €5M to €100M that are preparing to enter the stock market. In addition, the fund will support the development of local capital markets by investing in small and medium-sized enterprises through the placement of new shares or bonds.

ILTE is investing €18.8M in the fund, while ALTUM is investing €20M.  The source of financing for the remaining €10M is unknown. It is expected that €200–250M in share capital will be raised over the fund's 10 years of operation on the public markets of Lithuania and Latvia.

ILTE is Lithuania's national development bank providing financial services to local businesses, the public sector, agriculture and fisheries. The organization was founded in 2001.

ALTUM is the state development financial institution of Latvia. It provides state support to startups through financial instruments: loans, guarantees, investments in venture capital funds and others.