INVL Group completed the first closing of its second-generation private equity fund, INVL Private Equity Fund II, raising €305m and surpassing its initial €250m target.

The fund is now the largest private equity vehicle in the Baltics and will invest across Lithuania, Latvia, Estonia, Poland, Romania, and the broader EU, targeting companies with strong growth potential.

The fundraising attracted a diverse investor base, including entrepreneurs, family offices, institutional investors, and major financial entities such as the European Investment Fund, pension funds managed by Luminor Asset Management, SB Asset Management, and IPAS INVL Asset Management in Latvia, along with life insurer UAB SB Draudimas. INVL aims to continue fundraising to reach its €400m hard cap.

To align interests with investors, Invalda INVL and the fund’s management team committed €32.7m, representing 11% of the total fund size. Investors had the option to commit a minimum of €10m directly or participate via the INVL Private Equity Capital Fund II, which had a lower threshold of €125,000 and reached a total of €116m.

CEO Darius Šulnis highlighted the fund’s success as a sign of investor trust and strong regional investment opportunities. He emphasized the fund’s strategy of active investment management, supporting businesses to scale and become market leaders.

Managing Partner Deimantė Korsakaitė called the milestone historic, marking the largest private equity fund raised in the region. She stressed the firm’s commitment to long-term value creation and transformative growth, continuing the successful strategy of its predecessor, INVL Baltic Sea Growth Fund.

The fund remains sector-agnostic, focusing on majority or significant minority stakes in 10–12 companies, with investments ranging between €10m and €40m. The preferred equity ticket is €25m–30m, with opportunities for larger deals through co-investment.

The new fund builds on INVL Baltic Sea Growth Fund’s legacy, which closed 2024 with a 25% net internal rate of return and a total value to paid-in capital exceeding 2x. The fund’s first exit, InMedica, is set to be one of the largest healthcare investments in the Baltics to date.

INVL’s private equity expansion aligns with its growing presence in Romania, where its previous fund invested in Pehart Group. Additionally, its renewable energy fund plans to invest €220m in new projects, and its forestry fund continues active investments in the region.