UAB Orion Asset Management, one of the longest-running asset management companies operating in Lithuania, is preparing to offer the market a new private capital fund “ORION Private Equity Fund I” in the near future.
The private capital fund is prepared to invest up to 15 million EUR in small and medium-sized enterprises in the Baltic region which have a good basic business model and development opportunities. The management of the fund has been entrusted to Skirmantas Miliauskas who is a partner of the fund and a well-known professional in the Lithuanian financial market and business.
S.Miliauskas has 18 years of experience in financial markets. Over the past five years, he provided consultations to business clients in the Baltic States in matters regarding company finances. And before that, he held high-level positions in companies belonging to Finasta group and in BaltCap which is the largest private capital management company in the Baltic region.
“We are preparing so that, in addition to finances, the Fund would also be able to offer our extensive business management experience to small and medium-sized enterprises in Lithuania and in the entire Baltic region which lack capital for development. We will participate in both the management of the companies and in making key business decisions in order to grow and strengthen companies in which we will invest”, says partner of the planned fund S. Miliauskas.
ORION Private Equity Fund I will aim to acquire minority shareholdings or majority shareholdings of the company in which it will invest (34-67%). These shareholdings would be purchased from existing shareholders or via new share issues.
“The entire process of investment and involvement in the management of a company will be carried out based on the experience of the private capital sector, while control rights and protective measures will be discussed in detail in the shareholder and investment agreements between the fund and the company in which investments are made”, says Ramūnas Baranauskas, CEO of Orion Asset Management.
- Baranauskas points out that negotiations with future investors of the fund are already underway and should be complete within the next six months.
“Currently, discussions are carried out with future investors and financial partners of the Fund which should join the already identified anchor investor and a well-known player in the financial market of the Baltic region. It is planned that ORION Private Equity Fund I will sign agreements regarding its first investments this autumn”, says R. Baranauskas.
- Miliauskas does not reveal any specific companies in which investments will be made, however he assures that discussions with potential companies have been going on for some time.
“We plan to invest in sectors and companies which could significantly grow if they are provided with better opportunities to use financial resources and our accumulated experience in order to achieve greater efficiency in expanding and consolidating their activities, developing international connections, as well as modernizing and optimizing their business processes. The aim of the fund is to develop and significantly increase the value of the companies in order for them to become attractive investment opportunities for large enterprises operating at a regional level”, says manager of the new fund.”
He also points out that investment coverage may not be simply limited to the geographic boundaries of Lithuania and companies operating in our country.
“Even though Lithuania is the target investment market of the fund, we do not rule out investment opportunities in Baltic and Scandinavian countries, particularly in consolidation projects. In all cases, the main focus would be on small and medium-sized enterprises operating in technology-intensive manufacturing sectors with higher added value in information technology, infrastructure maintenance, medical and food production or trade industries, as well as in export industries”, says S. Miliauskas.”
Heads of Orion Asset Management also point out that there are no changes in the direction of activities of the company offering a wide range of niche investment funds to is clients, and the investment committee of the fund will include a team of asset managers who successfully closed the Orion Alternative Energy fund and earned its investors a return of over 100%.
“There are also no changes in the management company’s strategy: we are continuing to plan the expansion of the basket of managed assets and offer products and solutions to investors which would best suit their risk profile. We can see that the market is already mature enough for private capital investments and investors are also showing great interest. Therefore, next to the main investments which comprise of real estate and securities for most investors, we are already searching for investment solutions in private capital investment funds”, says Saulius Garbaravičius, Chairman of the Board of Orion Asset Management.”
According to the heads of Orion Asset Management, the chosen fund strategy, management experience, contacts in various business sectors and financial markets, as well as the trust of the anchor investor enable them to believe that the fund will become a competitive financing and development instrument for companies in the Baltic region, and an attractive investment opportunity for potential investors.
For more information contact:
Manager of Orion Private Equity Fund
Brief information about UAB Orion Asset Management:
Orion Asset Management is one of the most experienced asset management companies in Lithuania. The company entered the Lithuanian market in 2000 as UAB Investicijų portfelių valdymas. Its core business is the management of customer assets and investment funds.
Currently, the value of assets managed by the company is over 80 million euros. The company manages 17 investment funds with over 650 investors from more than ten different countries.