Lords LB Asset Management has established Lithuania‘s first fund that will specialise in investments in energy and infrastructure projects in Lithuania, Latvia and Estonia. The Baltic Energy and Infrastructure Fund (BEIF) is expected to accumulate €200 million in assets under management within three years.
Tore Sandvald, Board Chairman of BEIF, said:
“As funding from European Union structural funds is decreasing, alternative sources of financing will be required by infrastructure and energy project developers. Meanwhile, long-term investors are interested in this type of projects. We have established the Baltic Energy and Infrastructure Fund with a view to combining assets and generating value across the different sectors. In addition, the Fund will contribute to the aim of the European Commission to give a new impetus to private sector infrastructure investments."
BEIF’s investment priorities will be in the transport and energy sectors of the three Baltic states, with special emphasis on renewable energy and energy efficiency projects.
Mr Sandvald said:
“With their moderate public debt and budget deficit figures, the Baltic economies are stable, whereas their GDP growth has been faster than in many other EU member states. These countries are seeking to diversify their energy sectors, but there has been almost no private investment in infrastructure projects recently. In this situation, we see ample opportunities for the Fund. Global investors are discovering the Baltic states on their investment maps, but have been unable to enter infrastructure projects due to public sector dominance in our markets. Drawing on its local expertise and vast investment experience, BEIF will bring local, regional and institutional investors together with project developers.”
BEIF is an investment fund for institutional and professional investors. The fund’s strategy is to invest in long-term projects offering stable returns, such as renewable energy or public-private partnership projects. The fund has been established for a period of 15 years, with a possible extension for an additional five years. The fund is expected to make its first investments in Q2 2016.
Lords LB Asset Management has been serving institutional and private investors since 2008. The company manages six real estate and two private equity funds with total assets under management in excess of €233 million.
Lords LB Asset Management is licensed and regulated by the Bank of Lithuania and is audited by PwC and KPMG. The custodian banks of the company’s funds are SEB and Swedbank. The shareholders of Lords LB Asset Management and three individuals and their companies, with 47 percent of the stock held by Mindaugas Marcinkevičius, 44 percent by Andrius Stonkus and 9 percent by Antanas Vainauskas.