Equity United has held €25 million first-close of a new fund19 June, 2019
Tallinn, Estonia – Equity United GP1 OÜ („Equity United“), a new private equity company based in Tallinn, has held €25 million first-close of its inaugural Equity United PE1 UÜ (“the Fund”).
The new Fund aims to provide capital to Baltic SME-s with ambitious management teams that are looking to accelerate their expansion by accessing growth equity. Typical investments range from 1 – 4M EUR and grant substantial minority position to the Fund.
Key investors in the Fund include the European Investment Fund (EIF) and LHV pension funds. The investment from the EIF is made from EstFund – an initiative created in co-operation between the EIF, KredEx and the Republic of Estonia and financed under European Structural and Investment Funds, as well as EIF’s resources.
The founders of the newly established private equity firm are Tarmo Rooteman, Mart Tooming and Linas Sabaliauskas. Tarmo Rooteman and Mart Tooming both have a 15+ year experience managing United Partners, an investment company providing financial advisory services and investing in private companies and real estate in the Baltic region. Through its private equity arm of United Partners, the two partners have invested in 12 companies and delivered an estimated total of 20%+ IRR. Linas Sabaliauskas is a managing partner and head of corporate and transactions practice group in Lithuania at a pan-Baltic law firm TRINITI. In the course of 15+ years of professional experience, Mr. Sabaliauskas has advised transactions in the total aggregate value of over EUR 750 million.
Tarmo Rooteman, managing partner at Equity United, states: “We are delighted to announce the first-close of our inaugural fund and are humbled to have received the support from our investors. The contribution from investors is not only a commitment to the team and strategy of Equity United, but also to strengthening the Baltic capital markets by diversifying funding choices for companies. We are already engaged in active pre-investment phase and our team is excited to apply its resources and energy to 8-12 aspiring growth businesses of the region.”
Lehar Kütt, CEO of KredEx states that this marks the end of an important phase in the development of EstFund: “All three selected equity funds operating under EstFund have now raised the required amount of capital and we are already seeing investments made to regional companies with high growth potential. These developments also underline the importance of continued support to the development of the equity sector in the region which is of key importance in fostering high growth innovative SMEs and hence economic growth.”
The EIF’s Chief Executive Pier Luigi Gilibert commented: “With this investment into Equity United PE I, the EstFund and the EIF are supporting a new emerging team that will strengthen the development of the eco-system in Estonia by further increasing the availability of capital for the fast growing Estonian enterprises. A well-functioning equity market is very important for long-term economic growth and a healthy eco-system.”
According to LHV Fund Manager Kristo Oidermaa, LHV Pension funds continue to support the emergence of new private equity fund managers in the local market, as LHV believes the private markets offer better returns in the future than the public markets. Multiple new funds have been set up in Estonia over the last 5 years, which have seen a significant improvement in dealflow recently. Equity United fund will help to fill the current void in the market for minority stake investment and SMEs.
About Equity United – Equity United is a new private equity firm investing in Baltic growth companies. The firm operates from Tallinn and Vilnius. Its managing partners have over 60 collective years of finance and investing experience in the region. For more information, see https://www.equityunited.eu.
About Estfund – EstFund is a fund of funds created by Estonia and the European Investment Fund with a purpose to increase venture capital investments mainly into Estonian SMEs. The Estonian state invests 48 million euros of European Regional Development Fund resources into the fund of funds through KredEx, alongside EUR12 million from the EIF. Together, EstFund invests EUR 60 million into venture capital funds to which EUR 40 million shall be added by private investors.
About KredEx – KredEx is a financing institution helping Estonian enterprises develop quicker and expand more safely to foreign markets, offering loans, venture capital, credit insurance and guarantees with state guarantee. KredEx also helps the Estonian people improve their living conditions, offering loan guarantees with state guarantee for purchasing homes, as well as loans, guarantees and grants for solutions aimed at energy efficiency. For more information, see http://kredex.ee.
About European Investment Fund (EIF) – the EIF is a specialist provider of risk finance to benefit small and medium-sized enterprises (SME) across Europe. The EIF belongs to the European Investment Bank group. The goal of the EIF is to enhance SMEs’ access to finance in Europe through developing and offering targeted financial products to its intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. For more information, see http://www.eif.org.
About LHV – AS LHV Varahaldus pension funds have approximately 178,000 customers. LHV offers both actively and passively managed 2nd and 3rd pillar pension funds. The total volume of LHV pension funds is over EUR 1 billion. For more information, see https://www.lhv.ee.
Tel: +372 5020 597