Second offering of INVL Baltic Forests Fund I raises EUR 10 million

INVL Asset Management, one of Lithuania’s leading asset management companies, completed a second non-public offering of the INVL Baltic Forests Fund I for informed investors. The maximum amount of EUR 10 million for this round was raised. The fund’s units were distributed by the financial brokerage firm INVL Finasta.

“We’re pleased that this fund which was introduced to our clients last year attracted a lot of attention this year also. This offering was even more successful – although we offered investors the opportunity to invest twice as much as last year, we only partially satisfied their demand. We plan to continue searching out and offering exclusive investment ideas,” said Asta Muraškaitė, the director of INVL Finasta. She said that most of those who invested in the first offering used their right of pre-emption to acquire fund units.

During the second offering, a total of 88 investors invested in the INVL Baltic Forests Fund I. Just as it did during the initial offering round, INVL Asset Management invested EUR 0.5 million of its own money, increasing its total invested amount to EUR 1 million. Following the second round, the fund has a total of 93 investors.

“Having successfully launched the fund, in the first year we invested most of the money that was raised and formed a quality forest portfolio. This year we continue actively purchasing forests and are also looking to increase the forests’ value – there’s an opportunity to do so through the consolidation of plots and quality maintenance,” said Sigita Bizulienė, the manager of the INVL Baltic Forests Fund I.

From its inception through April this year, the fund purchased a total of 1 539 hectares of forest. In terms of timber volume, 70% of the portfolio comprises conifers, 17% birch, and the remainder aspen, black alder and gray alder. The fund’s net asset value at the end of April this year was EUR 7.2 million.

The goal of the INVL Baltic Forests Fund I is to form a balanced forest portfolio with a focus on outstanding quality. The fund invests in Lithuanian forests which are suited to forestry activities. It is seeking to form a consolidated parcel of forest plots, thus increasing their value. The fund targets an average annual net return on investments of 8% after expenses.

The INVL Alternative Assets Umbrella Fund for informed investors and its INVL Baltic Forests Fund I subfund began operations in February 2017. The first offering of the fund’s units took place in the first half of 2017 and raised the maximum amount of EUR 5 million. The INVL Baltic Forests Fund I will have 5-year investment period, while the subfund itself will operate for up to 8 years with possible extension for 2 more years. It is envisaged that the fund’s assets under management may reach up to EUR 50 million.

INVL Asset Management is part of the Invalda INVL group whose companies manage pension and mutual funds, alternative investments, private equity assets, private debt assets, investment portfolios and other financial instruments. Over 190 000 clients in Lithuania and Latvia and international investors have entrusted the group’s companies with more than EUR 600 million of assets.