EIF Commits €15 Million to Merito Partners’ Fund to Boost SME Growth in the Baltic Region

EIF Commits €15 Million to Merito Partners’ Fund to Boost SME Growth in the Baltic Region

(IN BRIEF) The European Investment Fund (EIF) has committed €15 million from the Baltic Innovation Fund II to Merito Partners’ ‘Merito Baltic Opportunities I AIF,’ marking its first institutional investment in the fund. Aiming to raise €100 million, the fund will support fast-growing small and medium-sized enterprises (SMEs) in the Baltic region, particularly in Latvia and Lithuania. This initiative aligns with EU goals to enhance SME financing, innovation, and economic resilience. Merito Partners, led by experienced Baltic business professionals, views the EIF’s backing as a validation of its strategy and will now focus on attracting additional investors.

(PRESS RELEASE) LUXEMBOURG, 2-Dec-2024 — /EuropaWire/ — The European Investment Fund (EIF) has pledged €15 million to support a corporate-financing initiative led by Latvian investment company Merito Partners. This investment, drawn from the Baltic Innovation Fund II, makes the EIF the first institutional backer of the ‘Merito Baltic Opportunities I AIF’ fund, which aims to raise €100 million to support the growth of small and medium-sized enterprises (SMEs) in the Baltic region, particularly in Latvia and Lithuania.

The fund’s primary objective is to enhance access to non-dilutive financing for fast-growing companies in the region, advancing European Union goals to strengthen SME financing and promote innovation and economic resilience. The EIF’s backing underscores its commitment to fostering growth in Estonia, Latvia, and Lithuania, aligning with its broader mission to enhance competitiveness and sustainability across Europe.

EIF Chief Executive Marjut Falkstedt emphasized the importance of this initiative, stating, “Our support for Merito Baltic Opportunities I AIF reflects our dedication to improving access to finance for SMEs, promoting innovation, and driving sustainable economic growth, even in challenging times.”

Merito Partners’ management team includes experienced Baltic business finance professionals: managing partners Mikus Janvars and Andris Kotāns from Latvia, and Audrius Mozūras from Lithuania. Janvars highlighted the significance of the EIF’s involvement, saying, “This commitment validates our investment strategy and the professionalism of our team. We are honored by the EIF’s trust and will now focus on attracting additional institutional investors.”

This partnership marks another milestone for Merito Partners, a rapidly growing private investment company specializing in growth capital, sustainable energy, specialized real estate, and corporate financing. The new fund seeks to address the challenges faced by SMEs in accessing financing, particularly in the Baltics, while delivering strong returns for investors.

The EIF’s role as part of the European Investment Bank Group includes designing and implementing financial instruments to support SMEs, in line with key EU policy objectives such as climate action, innovation, and economic cohesion. The EIF’s commitment to Merito Partners also contributes to the goals of the InvestEU program, which leverages public and private investments to foster sustainability and economic recovery across the European Union.

Background information

Merito Partners is a rapidly growing private investment company operating in Latvia and the New Nordics. It implements growth capital, sustainable energy, specialized real estate and corporate financing investment strategies on behalf of Baltic and international institutional investors. Merito Management AIFP, 100% owned by Merito Partners, is registered with the Bank of Latvia as an alternative investment fund manager. More information on the investment strategies implemented by Merito Partners is available here.

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Media Contacts:

EIF: 
Kristiina Randmaa
M. +352 4379 72894
e-mail:  k.randmaa@eib.org 
Website: www.eif.org — press@eib.org

Merito:
Agnese Ruberte
Merito Partners Communication Consultant
M. +371 29337759
e-mail: pr@meritopartners.com

SOURCE: European Investment Fund