Investment approach

Strategic focus

  • We search for companies with strong competitive advantages, which can be in the form of leadership position in a niche sector, an important role in the sector’s value creation process (buyer or supplier power) or ‘sticky’ products or services which are complicated or expensive to change or replicate.
  • We choose firms that do not face head-on global competition, which operate in traditional rather than popular industries and which have unique competencies either locally or within the industry.
  • Stable cash-flows and lack of correlation with business cycles are counted as advantages.
  • Considering the relatively small size of the Baltic States (our home market), we use a general approach in our investment strategy but ensure that our chosen management has sector-specific expertise and proven successful experience.
  • We focus on cross-border expansion, both organically and through acquisitions, and try to develop market leaders with pan-Baltic operations.

Geographic focus

The Baltic States form our main focus, but we are open to spill-over opportunities into neighbouring countries on a selective basis.

Transaction size

We search for deals valued between 2 and 10 million EUR in equity capital; mezzanine can be analysed as an exception. Although we mainly invest in majority stakes, we sometimes take up a minority interest when co-investing with partners or management.

Transaction type

We invest in growth capital, buy & build-type deals and buyouts.

Investment period

The target period is 3 to 7 years; longer-term options are weighted on a selective basis.