The EIF pledge to SG Capital Baltic Private Credit Fund aims to expand credit for small and medium-sized enterprises (SMEs) and Mid-Caps in Estonia, Latvia and Lithuania.
“This initiative is pivotal in providing essential financing to small companies in the Baltics, fostering economic growth and innovation,” said EIF Chief Executive Marjut Falkstedt. “Our investment not only bridges a critical funding gap but also signals our confidence in the region’s potential and the capabilities of SG Capital.”
“SG Capital Baltic Private Credit Fund, which will be managed by a dedicated team within SG Capital, aims to raise €100 million from a diversified pool of institutional investors, to support companies that lack sufficient bank lending. It will provide senior financing to SMEs and small Mid-Caps mainly in Latvia and Lithuania,” SG Capital said in a release.
The Fund will be classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), with 15% of its investments dedicated to climate action and environmental sustainability criteria.
SG Capital Baltic Private Credit Fund expects its first closing in April 2025.
Harijs Švarcs, Founding Partner at SG Capital Partners AIFP said: “Building on the commitment by EIF, by introducing private credit that is a well-known and increasingly popular financing alternative in Europe and the US, we expand our financing solutions to empower Baltic businesses to pursue sustainable and profitable growth.”
SG Capital has €200 million gross assets under management among two strategies, investing for 9 institutional investors over last 10 years.
The European Investment Fund is part of the European Investment Bank Group and is intended to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance.
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