Baltic Partnes joins forces with 1 Asset Management to launch €50+ million Baltic Capital Markets Acceleration Fund

The Fund’s goal is to stimulate the development of the Baltic capital markets by improving access to growth financing for small and medium-sized enterprises and small or innovative mid-cap companies. The Fund will provide financing for pre-listing and listing stage companies operating in the Baltic market through investments in newly issued share capital or bond issuances. By guiding these businesses toward public markets, the fund will seek to unlock growth opportunities, increase market liquidity, and attract a broader investor base to the region.

The Fund will take an industry-agnostic approach and will target already established and commercially viable companies with enterprise valued at €5–100 million. Most of the capital will be allocated to Lithuanian and Latvian businesses, while the remaining part may be allocated to investments in the broader CEE region.

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, contributing €18.8 million, plays a central role in strengthening Lithuania’s private capital markets and supporting long-term economic growth by investing in funds and financial instruments that address financing gaps. “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.

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.”

ALTUM, Latvia’s state-owned development finance institution, is investing €20 million into the fund. ALTUM focuses on fostering innovation, competitiveness, and sustainability in the Latvian economy through financial instruments and advisory services. Its participation highlights a shared regional commitment to accelerating the development and integration of the Baltic capital markets. “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.

The fund is expected to make a significant impact on the region’s financial ecosystem. Over a planned 10-year duration, it anticipates facilitating several new equity and bond listings on Nasdaq Baltic exchanges. These efforts are expected to enable between €200 million and €250 million in equity capital to be raised via public markets in Lithuania and Latvia.

“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 Dobava, CEO of Nasdaq Riga.

About 1 Asset Management
1 Asset Management is a licensed investment management company regulated by the Bank of Lithuania, providing services to institutional and private investors and focusing on niche asset classes and value-creation strategies. The company invests in modern student housing, historic and airport-adjacent hotels, veterinary clinics, forests, private debt in the CEE region, and large-cap companies listed on U.S. stock exchanges. It manages assets worth more than €400 million and serves over 400 investors. In 2025, the company expanded internationally by establishing a presence in Luxembourg through the acquisition of a local management company, enabling more flexible fund structures, access to global opportunities, and stronger partnerships with international investors.

About Baltic Partners
Baltic Partners is an independent regional financial advisory firm focusing on capital raising transactions with private equity funds, cross-border corporate M&A in the Baltic States and selected CEE countries. Transactions advised by Baltic Partners were designated with Private Equity Investment of the year (multiple times) and Best International IPO of Warsaw Stock Exchange awards. Most recently Baltic Partners team has received Financial Advisor of the Year in Latvia award from The Latvian Business Angel Network LatBAN and the Latvian Private and Venture Capital Association (LVCA).

About ILTE
ILTE is Lithuania’s national development bank, supporting the country’s strategic economic objectives and sustainable growth. Working directly, through ILTE Group companies, and in cooperation with other financial market participants, the institution focuses on improving access to financing for businesses, the public sector, and clients in agriculture and fisheries. ILTE plays a key role in attracting private capital to support domestic enterprises and invests in projects that drive innovation, enhance competitiveness, promote sustainability, and strengthen energy efficiency.

About ALTUM
ALTUM is Latvia’s state-owned development finance institution, providing enterprises and households with access to financial resources through loans, guarantees, and investments in venture capital funds. Its activities focus on sectors and initiatives defined as strategic priorities by the Latvian government, fostering economic growth and supporting the mobilisation of private capital. ALTUM administers state aid programmes financed through European Union funds, national public resources, and funding raised from international institutions and capital markets. The company is jointly owned by the Ministry of Finance (40%), the Ministry of Economics (30%), and the Ministry of Agriculture (30%).