New Baltic Fund to Inject Millions of Investment Capital
The European Investment Fund and the Baltic countries are today signing a deal to establish a 100-million-euro investment fund.
The Baltic Investment Fund, as it will be known, will be made up of 20-million-euro contributions from each of the Baltic countries, and a 40-million-euro contribution from the European Investment Fund.
The capital will be invested into private equity funds and from there on to small and medium enterprises in the course of four years, beginning in 2013.
Officials expect that additional co-investments from private investors and pension funds will at least double the fund's capital.
"The significance of the transaction is indicated by the fact that the sum of the expected investment is comparable to the total equity of the venture capital market in Estonia today,” said Andrus Treier, head of Estonia's state credit agency Kredex.