Lithuania’s development bank ILTE and Latvia’s ALTUM have established the Baltic Capital Markets Acceleration Fund, managed by 1 Asset Management, with a total size exceeding €50 million. The fund is intended to provide long-term financing for Baltic companies preparing for stock market listings and to support the broader development of local capital markets. It will invest in small and medium-sized enterprises and mid-cap firms through newly issued shares or bond placements, focusing mainly on Lithuanian and Latvian businesses. Over its 10-year lifespan, the fund aims to facilitate new equity and bond listings on the Nasdaq Baltic exchanges, contributing to stronger market liquidity and improved access to growth capital in the region.
The fund takes an industry-agnostic approach, targeting commercially viable companies valued between €5 million and €100 million. Its overarching goal is to help these firms transition from private to public capital, fostering a deeper and more integrated Baltic financial market.
Rokas Žemaitis, Partner at 1 Asset Management, commented: “Capital markets in the Baltic region remain underdeveloped relative to their potential, limiting growth opportunities for both local companies and investors. This fund is designed to change that. By combining institutional backing from ILTE and ALTUM with private investor participation, we can create a meaningful catalyst for market development. Institutional involvement is critical in achieving this breakthrough, and we are proud to have strong partners aligned with our shared vision.”
ILTE is contributing €18.8 million, underscoring its long-term commitment to strengthening Lithuania’s private capital markets.
“We are committed to strengthening private capital markets in the Baltic States. Our role is not only to mobilize capital but also to foster long-term economic growth and resilience for businesses and communities. By acting as a region rather than as individual small countries, we can build scale more effectively, attract investor confidence, and unlock greater opportunities,” said Inga Beiliūnienė, Head of International Affairs and Partnerships and Acting Head of the Business Development Unit at ILTE.
ALTUM, Latvia’s state-owned development finance institution, is investing €20 million in the fund as part of its broader strategy to promote innovation, competitiveness, and sustainability in the Latvian economy.
“The development of Baltic capital markets is essential to ensure that our companies have access to the financial instruments they need to grow and compete globally. With ALTUM’s €20 million investment in this first-of-its-kind initiative, we are helping Latvian and Baltic companies bridge the critical gap from private to public capital. We expect strong interest from companies and healthy competition among them, opening new opportunities for growth and attracting international investors,” said Reinis Bērziņš, Chairman of the Management Board of ALTUM.
According to Dmitrijs Smirnovs, Partner at Baltic Partners, the initiative will allow high-quality local firms “to grow and become public while keeping ownership in the hands of domestic private and public investors.”
Dmitrijs Smirnovs, Partner at Baltic Partners, commented: “The Baltic Capital Markets Acceleration Fund will seek to provide development capital to high quality local companies which have ambition to grow and become public. This will allow companies that want to keep long-term company ownership in the hands of domestic private and public investors. Furthermore, strengthening of investor confidence in local public capital markets shall unlock access to new sources of capital for domestic market leaders and ambitions entrepreneurs.”
The fund’s long-term impact could be transformative. It is expected to enable €200–250 million in equity capital to be raised via public markets in Lithuania and Latvia over its 10-year lifespan.
“The Baltic Capital Markets Acceleration Fund is a timely and strategic step toward deepening the Baltic capital markets. By supporting companies on their journey to a public listing, it not only unlocks growth and liquidity but also reinforces trust in our regional financial ecosystem, something essential for attracting long-term institutional investment” said Gediminas Varnas, President and Chairman of the Management Board at Nasdaq Vilnius.
“Having a strong local capital market is a game-changer for the whole economy, and the stock exchange is where it all comes together, connecting companies with investors and helping everyone grow. We are excited to see such strong collaboration between public and private partners driving the Baltic markets forward,” said Liene Dubava, CEO of Nasdaq Riga.
By aligning public institutions and private investors, the Baltic Capital Markets Acceleration Fund represents a major step toward creating a more liquid, resilient, and globally attractive regional financial ecosystem.
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Read the orginal article: https://arcticstartup.com/ilte-and-altum-baltic-capital-markets-acceleration-fund/
