Invalda INVL invests in INVL Private Equity Fund II

Invalda INVL has signed a Subscription agreement relating to INVL Private Equity Fund II. Invalda INVL has committed to invest EUR 30.8 million in INVL Private Equity Fund II, a closed-end private equity investment fund for informed investors managed by UAB INVL Asset Management, a company wholly controlled by Invalda INVL. This currently represents 10% of the total fund size. Fundraising will continue to reach a hard cap of EUR 400 million. It is expected that funds will be called to the aforementioned fund in stages for the execution of specific transactions.

Completing the first closing of INVL Private Equity Fund II EUR 305 million were raised and its target of EUR 250 million was exceeded. INVL Private Equity Fund II is the second-generation private equity fund of Invalda INVL Group, which will build on the strategy of the INVL Baltic Sea Growth Fund, which has been successfully operating since 2019.

By signing the Partnership Agreement and investing in INVL Private Equity Fund II, as in the case of investing in INVL Baltic Sea Growth Fund, Invalda INVL committed not to invest in private equity assets that are in line with the funds' strategy and will execute its main investment activities through these funds.

By investing in INVL Private Equity Fund II, Invalda INVL is entitled to a future return, if any, a pro rata share of the success fee. The management company of the fund is entitled to a management fee, the amount of which, depending on the size of the fund, will be the maximum INVL Asset Management has received from the management of an alternative investment fund. Cap on management fee paid to the management company over the life of the fund is 17% of total capital commitments.

The impact of the investment in INVL Private Equity Fund II on the results of Invalda INVL cannot be assessed at this stage. The predecessor, EUR 165 million the INVL Baltic Sea Growth Fund, closed the year 2024 with 25% net internal rate of return (IRR), total value to paid-in capital (TVPI) exceeding 2x. It is important to note that the result is not yet realised and is subject to change, and that past performance is no guarantee of future performance and profitability.

Additional information:

Darius Šulnis

CEO of Invalda INVL