INVL Asset Management, one of Lithuania’s leading asset management companies, completed the initial offer of the INVL Baltic Forests Fund I for informed investors. The maximum of EUR 5 million was raised during the offer.
“We’re pleased that an asset class which until now was hard to access has captured investors’ attention. Due to the strong interest, investors’ subscriptions were only partially satisfied,” said Asta Muraškaitė, the head of financial brokerage firm INVL Finasta which executed the offer.
A total of 47 investors invested in the INVL Baltic Forests Fund I in the initial offer. Seeking to align the interests of investors and the management company, INVL Asset Management itself invested EUR 0.5 million of its own money.
“Investments in the Baltic region’s forests offer a chance to broaden an investment portfolio with an asset class that’s characterised by stability and attractive returns with little correlation to global markets, and that additionally stands out for natural annual increment,” said Sigita Bizulienė, the manager of the INVL Baltic Forests Fund I.
Having completed the initial offer, the managers of the INVL Baltic Forests Fund I continue the purchasing of forests, aiming to consolidate a significant parcel of forest land plots. The fund invests in forests suited to forestry activities in the Baltics, first of all Lithuania, buying forests of varied ages and conditionsin all the country’s regions.
“Once we’ve invested most of the money that’s been raised, we plan to announce another offering. The investors who took part in the initial offer will have a pre-emptive right to acquire fund units,” Bizulienė said.
INVL Asset Management’s closed-end INVL Alternative Assets Umbrella Fund for informed investors and its INVL Baltic Forests Fund I subfund began operations on 13 February 2017. The INVL Baltic Forests Fund I will have 5-year investment period; the subfund itself will operate for up to 8 years with possible extension for 2 more years.
INVL Asset Management was authorised by the Bank of Lithuania to manage investment funds intended for informed investors in October 2016. The company is part of the Invalda INVL group. Companies in the group manage pension and mutual funds, alternative investments, private equity assets, individual portfolios and other financial instruments. As of the end of 2016, they had been entrusted with over EUR 500 million of assets by more than 170 000 clients in Lithuania and Latvia and international investors.