The fund attracted investments from ILTE, EIF, as well as pension funds managed by Swedbank and Luminor in Lithuania. The total size of the fund amounts to EUR 70 million, which will be used to finance small and medium-sized enterprises (SMEs) operating across the Baltic countries.
The fund will provide loans ranging from EUR 0.5 to 7 million, which may be used for investments, expansion into foreign markets, the development of new products or services, business acquisitions or mergers, real estate projects, and working capital. It will also offer refinancing opportunities for existing loans.
Such funds offer investors not only potentially higher returns but also more flexible structures, which are often unavailable in public markets. Sound Asset Management plans to issue loans with maturities of up to five years. The fund is managed by five seasoned investment professionals with experience in both the public and private financial sectors.
The TEGOS team – Karolina Lapinskaitė, Vidmantas Drizga, Marijus Kriščiūnas, Julija Jakutytė, Paulius Žalnieraitis and Kajus Pakėnas – assisted the client with all legal matters in this project, from Fund structuring to completing the First Closing.
