GILD Bankers, an investment banking and asset management group headquartered in Tallinn, Estonia, has launched its second private equity vehicle to invest in the Baltics. The firm is hoping to garner €50 million over a 12-month fundraising period.
GILD is pinning its hopes on growth in the Baltic region being driven by economic ties with Sweden. “Swedish parent banks have long-term business interests in the Baltics and are likely to engineer a gradual reduction of the economic imbalances,” the firm said in the fund’s marketing materials.
The firm also pointed to the fact that the Baltic economies are “small, flexible and resilient with well educated labour forces”.
GILD Long Haul II, on which the managers hope to hold a first close by the end of 2008, will make growth investments of between €3 million and €5 million in companies in the Baltic States, Central and Eastern Europe, the Commonwelath of Independent States – excluding Russia – and the Nordics.
GILD Bankers has committed a €5 million anchor investment.
According to the firm, the funds’ predecessor, which began investing in 1999 and made seven investments in the new media and technology sectors, generated a net internal rate of return of 31 percent.