FlyCap launches Private Debt Fund III

With the achievement of its private investment fundraising target, the private equity fund manager FlyCap has begun financing companies. Following the conclusion of the first subscription phase, the fund’s total volume stands at €42 million, which will be invested over the next five years in promising and growing Baltic companies.

The fund’s financing consists of €24.8 million in public funding from the European Regional Development Fund and ALTUM, as well as €17 million raised from private investors, including two Latvian pension fund managers – CBL Asset Management, a subsidiary of Citadele Bank, and Luminor. This is a significant signal of investor confidence in the fund’s strategy and the potential of Latvian businesses. FlyCap plans to raise an additional €8 million to reach its final capital target of €50 million.

Reinis Bērziņš, Chairman of the Board of ALTUM, commented:“Investments will be made in promising, viable, export-oriented growth-stage companies, promoting the creation of new jobs, increasing tax revenues, and contributing to the overall development of Latvia’s economy. The involvement of Latvian pension fund managers is particularly significant – it not only expands the opportunities of the local capital market but also allows pension savings to directly participate in the growth of Latvian companies, generating positive returns for both the economy and future pension recipients. We wish the team a strategically sound and dynamic investment period!”

The fund is part of the new European Union funding period’s private equity instruments, with total financing from ALTUM, the European Regional Development Fund, and private investors reaching nearly €100 million. The private equity fund FlyCap prefers investments in healthcare, business services, technology, and export-oriented sectors, with particular focus on companies with strong growth potential.

Jānis Skutelis, Chairman of FlyCap, stated:“FlyCap’s goal is to help growing Latvian companies develop faster and more efficiently by offering loans of €1–4 million with flexible repayment schedules over a 4–5 year term. The new fund will provide financing for investments, working capital, and equity acquisitions, supporting their growth and development. FlyCap loans are compatible with bank financing – they can be subordinated to bank loans, thereby increasing the total funding available. A larger financing volume will help companies gain market share faster, outpacing competitors in their sectors.”

Atis Krūmiņš, Head of Asset Management and Pension Companies at Luminor in the Baltics, emphasized:“With its experience and achievements in investment, FlyCap continues to foster company growth in Latvia and the Baltics, while paying particular attention to sustainable and responsible business solutions fully aligned with Luminor’s pension fund strategic objectives. This investment provides new financing opportunities for local companies, helping them implement their growth and development plans, while promoting innovation and sustainable business practices. This approach not only supports individual company growth but also contributes to Latvia’s long-term economic stability, innovation development, and competitiveness in the international market.”

Zigurds Vaikulis, Investment Director at CBL Asset Management, a subsidiary of Citadele Bank, said:“The decision to invest in the FlyCap fund was made after very careful consideration. In our view, the fund’s strategy and experienced team will provide attractive returns for the pension plan participants entrusted to us and align with our mission – to invest as much pension savings as possible meaningfully in Latvia. The second-pillar pension plans managed by CBL Asset Management – CBL Active and CBL Universal – will invest a total of €8 million in the FlyCap fund.”