INVL Bridge Finance provided companies with EUR 37.9 million of funding last year

The INVL Bridge Finance private debt fund managed by INVL Asset Management, the leading alternative asset manager in the Baltics, provided nearly EUR 38 million of funding to companies in 2024. At the end of the year, the fund also updated its investment strategy.

In 2024, the private debt fund signed a total of 17 financing agreements with 7 companies, matching the figures from 2023, when EUR 36 million of funding was provided. Last year three companies (from Latvia, Estonia and Romania) fully repaid the funding they had received, while two others made partial repayments as per the agreed schedules.

Currently, INVL Bridge Finance’s portfolio includes 6 companies operating in Lithuania and Latvia. A significant portion of the fund’s portfolio consists of investments in alternative finance companies, which use the capital raised to expand operations and grow their loan portfolios. Additionally, the fund has allocated the capital raised from investors to building maintenance and engineering solutions, as well as real estate projects.

“Private debt remains an attractive source of funding for companies due to its flexibility and fast decision-making. That’s especially important for businesses looking to respond quickly to market changes and finance expansion, acquisitions or other strategic projects. Unlike traditional financiers, private debt funds offer the opportunity to create tailored solutions by negotiating repayment terms, collateral, interest rates and other conditions. This enables businesses better manage their cash flows and achieve their strategic objectives,” says Viktorija Vaitkevičienė, INVL Bridge Finance’s executive partner.

For instance, the fund’s portfolio currently includes two companies that provide financing to small and medium-sized enterprises (SMEs). Thus, the fund is not only directly financing businesses but also giving other market players a chance to borrow on competitive terms to promote SME growth, according to the fund’s executive partner says. 

Return on investments 

The open-ended private debt fund for informed investors raised more than EUR 6.2 million from the investors last year (both private individuals and legal entities, including institutional investors). The fund’s net asset value increased by EUR 6.3 million during the year and reaching EUR 37.1 million at the end of December 2024.

Since its inception in May 2015, INVL Bridge Finance has delivered an average annual net return of nearly 8% to investors. In 2024, the fund’s net return to the investors was 5.6%, though its normalized net return was 9.6%. Over the next 12 months, INVL Bridge Finance is projected to deliver a net return of 9-10% to the investors.

“For investors seeking portfolio diversification, investing in private debt funds is an attractive option, since they can expect a relatively bigger return while posing comparatively lower risk than if they put their funds in standard bond or other fixed-income products. The average duration of the bonds in the fund’s portfolio ranges from 5 to 7 months, which helps to maintain liquidity and respond quickly to the ever-changing situation in the market,” Viktorija Vaitkevičienė notes.

Updated strategy

At the end of 2024, when INVL Asset Management assumed direct management of the INVL Bridge Finance fund, the fund also updated its investment strategy.

“The updated strategy enables our fund to offer businesses funding for longer periods – up to 3 years now as opposed to 1 year previously. In addition, accounting for the fund units is now carried out at a depositary, enhancing credibility for investors,” the fund’s executive partner says.

INVL Bridge Finance invests in privately placed corporate bonds. Such investments in non-public bond issues allow the fund to directly scrutinize companies, structure transactions, to negotiate the terms of the investment, and to supervise and control investments on an ongoing basis. This process ensures effective risk management, maintains high quality investments for the fund, and avoids the additional expenses related to bond offerings and prospectus preparation for the companies that are seeking financing.

Private debt’s attractiveness to investors as a product is further enhanced by the fund’s quarterly liquidity offering to investors: they can acquire units of the INVL Bridge Finance fund each month and sell them to the fund every quarter after a 12-month freeze period.

About INVL Asset Management

INVL Asset Management is the leading Baltic alternative asset manager. We strive to deliver superior risk-adjusted returns to our investors while positively impacting our region’s economic development.

We are part of the Invalda INVL group with a track record spanning over 30 years. Our group manages or have under supervision more than EUR 1.6 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. Our scope of activities also includes family office services in Lithuania, Latvia and Estonia, management of pension funds in Latvia, and investments in global third-party funds. Further information www.invl.com/en/.

Important information

This is a marketing communication of an information nature, which is not and shall not be construed as an offer to purchase investment units of a collective investment undertaking, an investment recommendation, or investment research, as it is not designed to take into account the investment objectives, financial situation, or needs any individual investor.

When investing, the investors assume the risk associated with the investment. The value of investments can both rise and fall, and an investor may recover less than he/she/it has invested. Past investment results do not guarantee the same results or profitability in the future. Past performance is not a reliable indicator of future performance. Before making a decision to invest, potential investors should, on their own or with the help of investment advisers, assess the suitability of the investment for them along with the taxes and fees related to the investment, consider all the risks related to the investment, and carefully read the rules, prospectus and other documents of the respective collective investment undertaking.

Units of this collective investment undertaking, mentioned in this press release may only be distributed to informed investors as defined in the Law on Collective Investment Undertakings for Informed Investors of the Republic of Lithuania, as amended and supplemented from time to time, and may not be distributed and transferred to any other clients.