EBRD contributes up to EUR 20 million to the User Das Fond Eften Special Opportunities Fund The first private equity real estate fund in the Baltics to focus on assets in need of additional capital More sustainable real estate with a focus on energy efficient projects A fund that brings
The European Bank for Reconstruction and Development (EBRD) has focused on special opportunities for the first time in the Baltic Sea region, with a clear focus on investments in assets that require an injection of equity or quasi-equity capital to implement their business plans. We support real estate funds. .
The EBRD will make an equity commitment of up to EUR 20 million to the Eften Special Opportunities Fund (EfTEN SOF), managed by Eften Capital, the largest real estate fund manager in the Baltic States. This is the bank’s second investment in a real estate fund managed by Eften Capital, after the bank made a €30 million capital commitment to Eusaldasfond Eften Real Estate Fund 4 in 2019.
EfTEN SOF was established in January 2024 to invest in all real estate asset classes including residential properties in Estonia, Latvia and Lithuania. The Fund will pursue strategies that target development projects that require additional capital and operational real estate assets facing cash shortages.
The fund aims to achieve very high energy efficiency in its projects. This is the Green Economy Transition (GET) approach.
Thomas Kailis, Head of EBRD for the Baltic States, said: “We are proud to strengthen our partnership with EfTEN Capital through our investment in EfTEN Capital’s new Special Opportunities Fund. Our investment will support improved energy efficiency across the Baltic real estate sector. as well as contributing to the strengthening of the region’s private equity sector, two of the EBRD’s priorities in the Baltic States.”
Vlaho Kojaković, Head of Real Estate at the EBRD, said: Our investments contribute to its continued institutional development and provide the liquidity needed to address specific funding gaps in the market. This project is fully aligned with our new real estate strategy and reflects our commitment to supporting innovative market solutions and strengthening the resilience of the region’s real estate sector. ”
Anne Fossemal, Head of Equity Fund Investments at the EBRD, said: “The EBRD is pleased to be supporting Eften Capital and the Baltic real estate and private equity markets as the financing environment remains challenging.” .
Viljar Arakas, CEO of EfTEN Capital, said: “EfTEN SOF is the first fund in the Baltics to finance real estate projects that are in their early stages or do not yet qualify for full senior financing. It aims to fill the gap created by the decline in foreign investors’ interest in the Baltic real estate sector. The fund’s priority objective is to bring real estate projects to a successful exit under joint management with existing owners. These projects are expected to be completed within three to four years. The fund will be financed through both equity and debt capital. This is proof that the viability of our investment strategy is recognized at the highest international level.”
The EBRD is a major investor in the Baltic States. To date, we have invested more than EUR 1.1 billion in 117 projects in Estonia, more than EUR 1.1 billion in 112 projects in Latvia, and more than EUR 1.6 billion in 133 projects in Lithuania.
