U.S. should be the most attractive market for Lithuanian high-tech expansion

30/09/2024

“If a company is looking for expansion opportunities through acquisitions, one of the most attractive markets right now is the American one,” said Šarūnas Šiugžda in an interview with LRT.lt.

During the interview, Šarūnas discussed how Lithuanian companies are making strategic acquisitions in the U.S., particularly in high-tech sectors like the supply chain of semiconductor industry. These moves go beyond expansion – they’re about leveraging innovation and technology to compete on a global scale. Lithuanian businesses are positioned to play a key role in the development of advanced technologies, such as medical and defence, especially as the U.S. seeks reliable partners to reduce dependency on China.

Šarūnas also shared more insights about Altechna’s acquisition of Alpine Research Optics – a high-precision optics manufacturer based in the US, which was acquired last year.

“The semiconductor industry is probably the most promising sector. Both Altechna and ARO have many clients in this segment. This area is highly sensitive in US foreign policy, with very large investments being made to bring it back to America and make it as independent from Taiwanese or Chinese suppliers as possible. We have a large customer base, so as the semiconductor industry further develops in the U.S., very good growth opportunities for our business open up,” added Šarūnas Šiugžda.

Read a full article here.

Horizontal Media Group Plans to Lead in E-commerce: Sena.lt and Tempo.lt Have Ambitions in the European Market

23/09/2024

Two years ago, after successfully acquiring the used book platform Sena.lt, Horizontal Media openly shares its ambition to create a unique regional e-commerce player. Sena.lt prides itself on a strong position in the book market, which grew out of a reader community established 15 years ago. Currently, Sena.lt is the largest used book selling platform in Lithuania, with 176,000 active users.

After becoming part of the Horizontal Media group, Sena.lt implemented several business model changes — transforming from a traditional classifieds portal into a fully functional marketplace, offering significantly more trading functionalities and opportunities for users. These changes have doubled the volume of goods, attracted 44% new users, and increased revenue by four times compared to the same period last year.

“We quickly realized that Sena.lt solves a real problem — helping users sell their read books that often gather dust on shelves. At the same time, we give a large number of users the opportunity to find new books, helping publishers and small bookstores reach their audience and connect with a vast number of book buyers,” says Šarūnas Šiugžda, Chairman of the Board of Horizontal Media, Executive Partner, and Founder of LitCapital.

Sena.lt Creates a New Trading Model

Sena.lt operates as a seamless technological solution — integrating buyers, physical sellers, retail, courier, and payment systems. This means that Sena.lt creates a complete trading ecosystem, where both peer-to-peer (P2P) and business-to-consumer (B2C) models can coexist, offering buyers a wide range of choices.

“Our goal with Sena.lt is to create a full trading ecosystem so that users can find all relevant product categories in one place,” reveals Šarūnas Šiugžda.

Strengthening the Core Functions of Publishers While We Handle Sales

The Sena.lt model is unconventional — thanks to technology, the platform doesn’t need its own warehousing or logistics service system, making it attractive to businesses of various sizes, like publishers, by bypassing traditional intermediaries. This not only increases competition in the market but also provides consumers with a wider selection.

“Publishers can focus on book publishing, and we take care of attracting buyers, fulfilling orders, customer service, and all the necessary functions for business on one platform,” says Šarūnas Šiugžda.

Expansion into Other Product Categories

Sena.lt’s expansion doesn’t stop with books — interior items, music records, board games, and electronics categories are also being expanded on the platform.

“We have identified the refurbished electronics market as highly promising. In Lithuania, this market’s potential is still untapped, which is why Horizontal Media recently introduced Tempo.lt, which has already become the largest platform for selling refurbished phones in Lithuania,” notes Šarūnas Šiugžda.

Considering rising electronic device prices and the diminishing resources needed for their production, secondary device consumption is becoming an essential part of today’s life. Tempo.lt offers a wide selection of professionally refurbished phones, and the platform will also provide an opportunity to conveniently sell used devices, which will be refurbished and reintroduced to the market. In this way, consumers can enjoy lower prices without compromising quality. This sustainable consumption model significantly extends the lifespan of electronic devices.

Space for E-commerce Business Expansion in Lithuania

E-commerce in Lithuania has been growing rapidly in recent years, with several prominent trends reflecting this. In 2023, around half of Lithuania’s population purchased something online at least once. By 2024, it is forecasted that e-commerce revenues in Lithuania will reach approximately EUR 1 billion, with an annual growth rate of around 3.8%.

“As for the market share of e-commerce leaders, it’s about 10-15%, so there’s plenty of room for growth and competition in Lithuania, which is why Sena.lt has ambitions to expand both in terms of book sales and strengthening its position in other product categories,” says Šarūnas Šiugžda.

The Importance of Technology and Data

Looking to the future, Sena.lt will become even more personalized and data-driven. The platform’s success is supported by the technologies behind it. Advanced algorithms and artificial intelligence-based recommendation systems will ensure that users are offered products that match their consumption habits and preferences.

“The creation of an innovative P2P and B2C platform is changing the rules of commerce. By shortening the supply chain and promoting direct relationships between buyers and sellers, we are fundamentally changing the long-standing trading model in Lithuania, which has been based on intermediaries and logistics control,” summarizes Šarūnas Šiugžda.

Expansion Potential in the European Market

Horizontal Media is not hiding its plans to have Sena.lt become not only one of the leaders in e-commerce in Lithuania but also to expand its model to other countries. By 2029, the European e-commerce market is expected to reach around EUR 950 billion. The largest segments are fashion, electronics, and leisure products. Cross-border e-commerce is growing, though still underutilized — only 15% of European consumers purchase from other countries. These market trends indicate that innovative e-commerce models can meet the existing trade demand and have significant expansion potential.

LitCapital invests €1 million in Cargo Stream’s vision to disrupt logistics industry

10/08/2023

LitCapital, an independent growth capital fund dedicated to investing in high-growth companies in the Baltic region, has completed an investment into the supply chain logistics management platform, Cargo Stream.

Founded in 2019, Cargo Stream’s modular cloud-based workspace integrates supply chain processes to enhance control, resource efficiency, and communication from freight sourcing to transport execution and auditing. It offers shippers a streamlined tendering process, facilitates triangulation for maritime, and provides forwarders with an integrated direct booking interface. The investment will accelerate Cargo Stream’s growth by supporting its global expansion through further product development and customer acquisition, as the platform has already shown its ability to attract the interest of major international supply chain market participants.

“We are excited to partner up with LitCapital, an established institutional investor, for our next phase of growth. This investment represents a significant milestone for Cargo Stream as it will further broaden our geographical reach: accelerate growth into Poland and bolster operations in the United Kingdom,” said Šarūnas Belickas, COO of Cargo Stream.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, commented: “Cargo Stream exemplifies all the qualities we look for in an investment, including entrepreneurial spirit, robust product quality, speed of multinational customer adoption and a competitive position in a fast-growing market. Cargo Stream has identified a unique opportunity in the logistics market, effectively developing and launching an innovative and technologically sophisticated supply chain management platform. The demand for efficient and digitized logistics management is continuously growing and its significance will only increase in the future. We are extremely happy to be able to work with the team of Cargo Stream.”

LitCapital led the investment round in an electric powertrains designer and manufacturer Elinta Motors

07/11/2022

LitCapital, a growth capital fund focusing on investments in high-growth enterprises, invested in Elinta Motors, which designs, develops, and manufactures turn-key powertrain components and battery systems for commercial vehicles.

Using their extensive background in engineering and electronics, ELINTA began working on the development of e-mobility solutions for electric vehicles in 2010, with the first prototypes of electric trucks introduced a few years later. In 2017, after receiving a positive response from the market participants, ELINTA transferred the invention’s intellectual property rights (IPRs) to the newly created company – ELINTA MOTORS. Ever since its inception, ELINTA MOTORS has been developing and improving its electric mobility offerings, not only enhancing the power and range but also showing extraordinary attention to the durability of its products. ELINTA MOTORS growth will be accelerated by the investment, which will further strengthen its position as an EV powertrain provider across multiple markets along with improving its current manufacturing capabilities.

“We believe that electric mobility is the way of the future, and the electric vehicles market offers plenty of opportunities for further developments and growth. By partnering up with our investors and making use of their knowledge and expertise in enterprise growth we’ll be able to further scale up the production and develop new products” said Laurynas Jokužis, CEO of ELINTA MOTORS.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, commented: “The engineering talent of the ELINTA MOTORS and the innovative solutions that they have created astounded us from the very start. Furthermore, the increasing prominence of Electric Vehicles and the overall shift in mobility markets toward renewable energy have also played a key role in LitCapital’s decision to invest. We believe that the market is going to grow further and become more mature, with ELINTA MOTORS being positioned to utilize this opportunity to the fullest”.

ELINTA MOTORS is planning to triple its revenue in 2022 while at the same time maintaining a healthy double-digit EBITDA margin. Attracted funding will be invested in R&D, efficiency improvement solutions, and capacity expansion. The company has an ambitious business growth plan with the aim to become the market leader in selected market segments in the coming years.

Law Firm TGS Baltic advised the Investors and Trinity Jurex advised the Company during the investment process.

Horizontal Media completes acquisition of online classifieds portals Autogidas and Domoplius

12/10/2022

Horizontal Media (“HM” or the “Company”), which had recently received investment from LitCapital, today announces that it has completed its acquisition of online classifieds portals for automotive and real estate – Autogidas and Domoplius. It is expected that the transaction will increase the number of services offered by the Company, enhance customer experience, and strengthen its market position.

Together with the Company’s CEO, Per Moller, LitCapital invested in the closed joint-stock Company Horizontal Media. After the acquisition, the Company now manage online classifieds portals Autogidas and Domoplius as well as peer-to-peer (P2P) book trading platform Sena.lt.

“A devoted customer base, years of experience in digital product management, and an emphasis on providing high-quality services have all led to the conclusion that the platforms acquired have the potential for further grow. We are currently looking into making additional acquisitions that are comparable to those we have already made,” says Per Moller, CEO of Horizontal Media.

“Due to the highly competitive nature of the Lithuanian online classifieds market, we are under constant pressure to develop and implement innovative new services and functionalities for our users. Both Autogidas and Domoplius are well-known for being the second most popular option among local businesses and general population. The primary objective of online classifieds is to provide users with the highest possible quality of services. The expertise of investors in the digital marketing, along with additional financing, will make it possible to enhance the experience of customers more quickly, as well as to simultaneously expand product offerings,” says Evaldas Narbuntovičius, CEO of Autogidas and Domoplius.

Over the course of the transaction, the buyer was advised by the commercial law firm Walless. The seller was represented by the M&A advisory firm Oaklins, while legal advice was provided by Sorainen.

LitCapital invests in an online P2P/B2C market facilitator

18/08/2022

LitCapital, an independent growth capital fund focusing on investments into high-growth companies in the Baltic region, completed the investment in Sena lt UAB (Horizontal Media, “HM”) HM is currently managing a peer-to-peer (P2P) and business-to-customer (B2C) platform for used books in Lithuania and planning to execute an ambitious business plan aimed at growing the business via expansion into new products and services.

HM is currently developing the platform, with close to 130 thousand users. After the initial investment from the entrepreneur – Per Moller, a new strategy to grow through organic development with heavy emphasis on acquisitions was developed. LitCapital investment will be used to implement the plan.

HM intends to supplement the current platform with more sophisticated functionalities for its users and at the same time will expand into other business areas and new products like vertical classified advertisements segments. The fund’s investment will make it possible to strengthen HM financially, improve the quality of customer service and develop functionalities. It is expected that HM revenue in 2023 will reach EUR 4m.

“The changing market trends and increasing focus on the circular economy means that more products will enjoy a second even a third, fourth or more lives as people become more used to buying used products instead of new ones. Various online platforms that are ready to help people on this pathway are on the course to reap significant benefits. There are additional complementary business segments where we are going to expand. Some acquisitions are planned too,” said Per Moller, co-owner and CEO of HM.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, commented: “Current market trends show that HM is very well positioned to function as a backbone for further market growth. That’s why we are glad to work with the company and Per Moller on the quest to become a horizontally integrated media group“.

Law Firm Walless advised the Company during the investment process.

LitCapital announces an investment into EV charging technology designer and manufacturer Elinta Charge

14/07/2022

LitCapital announces an investment into Lithuania-based award-winning electric vehicle (EV) charging technology designer and manufacturer Elinta Charge to support the expansion and development of state-of-the-art EV technology and the company’s vision of durable e-mobility.

Elinta Charge designs and assembles EV charging stations for commercial and residential use. The company provides charging stations for individuals, fleet managers, as well as operators of public spaces, offices, hospitality and other facilities in over 25 countries worldwide. By offering cloud-based software as part of the product, Elinta Charge provides a comprehensive, universal and durable EV charging solution. The company’s mission of enhancing the e-mobility infrastructure within cities without compromising the aesthetics and functionality received public recognition in 2018, when the CityCharge V2 station earned Elinta Charge the prestigious RedDot award for Product Design.

“While Elinta Charge has registered outstanding growth to date, the potential in the EV technology space is still far from tapped. With the growing support of individuals, businesses and regulators, electric vehicles are becoming an increasingly inevitable part of our daily lives. This is an exciting market to be in, and our focus on refined design and sophisticated technology offers a functional yet elegant solution, capable of meeting the needs of even the most discerning clients,” – comments Ignas Mikutis, Founder and CEO at Elinta Charge. “With the financial support of the investors, as well as their expertise and network, we stand ready to embrace the lucrative EV technology market opportunity, simultaneously improving green infrastructure within communities.”

“In addition to the outstanding achievements of Elinta Charge, and their ability to successfully navigate this technologically dynamic market, LitCapital’s investment is motivated by sustainable green mobility trends and the growing overall prominence of electric vehicles. We see high fragmentation within the European electric vehicle market, which is currently entering the consolidation phase. Considering solid market potential, coupled with our strong belief in the engineering talent of Elinta Charge and the outstanding product they have built, we are extremely glad to be able to join as investors,” – comments Šarunas Šiugžda, Founder and Managing Partner at LitCapital.

The investment will be used to expand the team and to bolster the company’s R&D and marketing capacity, thereby supporting expansion in new and existing markets as well as across product groups. The round proceeds will also be used to develop fast DC chargers, an inevitable leap forward for the company as a provider of EV charging technology. Further funding rounds are planned in the future.

LitCapital backs Ondato in its €3.6M seed extension to support rapid expansion of its Compliance-as-a-Service model

27/10/2021

LitCapital, along with previous round investors OTB Ventures and Startup Wise Guys, backs Compliance-as-a-Service startup Ondato in its €3.6M seed extension round, bringing the total amount raised by Ondato so far to €5.6M. Being experienced institutional investors, LitCapital will provide strategic support as the startup continues to scale rapidly. The funds will be used to expand the team with a focus on high-calibre hires to support new market expansion, product development and operations.

Ondato provides highest standard compliance tools to help its clients turn compliance into a competitive advantage. The company offers a multi-functional compliance management suite designed specifically for financial institutions, offering integrated solutions for identity verification, data monitoring, screening, due diligence, risk scoring, and case management, all under a single software as a service (SaaS) model.

“We have grown 4X in the last 10 months and substantially expanded our team size and range of services. The data shows us that there is a need to both deepen and widen the use of KYC services. The additional funds will help us sustain a pace of growth that has beaten our expectations. We are also excited to welcome LitCapital on board to enter our next expansion stage. With their backing as experienced institutional investors, we are well positioned for continued growth and a strong Series A in 2022,” said Liudas Kanapienis, co-founder and CEO of Ondato.

“Ondato has identified a unique opportunity in a booming market and successfully built and marketed a product that goes beyond what any other KYC provider has – a truly comprehensive compliance management software to financial companies making use of the latest technology. We are impressed with what Liudas and his team achieved during such a short period of time, and we are extremely happy to be able to work alongside them,” commented Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, who is also joining Ondato as a Board Member.

Founded in 2016, Ondato has developed software enabling banking institutions to onboard new clients and manage other compliance functions. The company serves over 200 clients in more than 30 countries operating in fintech, banking, insurance, telecommunications, and other related sectors.

Ondato aims to use the additional backing to further focus on product development and customer acquisition in Europe and the US ahead of a planned Series A in early 2022.

LitCapital Becomes Signatory to United Nations-Supported Principles for Responsible Investment

11/10/2021

LitCapital, growth capital fund focusing on investments into high-growth companies, become a signatory to the United Nations-supported Principles for Responsible Investment (the “UN PRI”), as part of its ongoing commitment to Environmental, Social and Governance (ESG) issues. LitCapital acknowledges the investment implications of ESG factors and pursues in incorporating these factors into its investment decisions.

LitCapital believes that ESG management is critical to achieve sustainable development. Therefore, LitCapital actively promotes ESG practices within its portfolio companies by supporting internal ESG practices and encourages to enhance ESG capabilities. By joining the PRI LitCapital emphasizes its duty to act in the best long-term interests of its investors and seeks to participate in creating a more sustainable ecosystem.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital said: “LitCapital has incorporated ESG considerations into its investment process for a long time. Joining the PRI is to help promote this philosophy in the investment community worldwide. As a leading private equity investor, we strongly believe that it is necessary to set a standard for responsible investing.”

“With a strong emphasis on stewardship, and close contact between the GP and company management, private equity is naturally suited to responsible investment. A systematic and informed approach to identifying and managing ESG issues across the portfolio will protect, and can significantly enhance, investment value. Responsible investment is also a marker of the operational excellence of the fund itself, demonstrating transparent and strategic fund management,” as commented by PRI.

LitCapital joins over 4,000 existing signatories to the Principles for Responsible Investment, including asset owners, asset managers and service providers, who collectively oversee more than US$121 trillion in assets under management.

LitCapital led Series A funding round into tech-enabled services for cross-channel marketing reporting firm Whatagraph

29/09/2021

LitCapital, an independent growth capital fund focusing on investments into high-growth companies in the Baltic region, completed the investment in Whatagraph. Whatagraph is one of the fastest growing B2B Software-as-a-Service (SaaS) platforms for marketing analytics and social media reporting.

Launched in 2015, Whatagraph serves more than 1000 customers and has a well-diversified global subscriber base with substantial share of revenues generated in the US. The platform has already attracted the attention of international investors and has been maintaining a steady growth pattern. The investment will accelerate Whatagraph’s growth by financing a global expansion through customer acquisition and product development.

Fund’s investment is based on positive market drivers, including the increasing complexity in the digital marketing space and the pandemic-induced growth of e-commerce, among other factors. The global digital advertising market is valued at USD 350-400 million and is expected to grow.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, commented: “LitCapital is supporting Whatagraph as the company pursues their vision of fast growth by creating and delivering a great product to its customer base. Whatagraph has all the qualities we look for in an investment, including a dedicated team with an entrepreneurial spirit and a strong competitive product position in a fast-growing market. Whatagraph has already demonstrated credible results. This is another example of a Lithuania-based business, which was founded and backed by an ambitious team.”

Invest Europe recognizes the excellence of private equity in CEE

03/03/2021

Invest Europe recognizes the excellence of private equity in the CEE region by publishing a special report “Private Equity in CEE: Creating Value and Continued Growth”. The report highlights and describes the best selected private equity investments during 2015-2019.

LitCapital is proud that the turnaround of its portfolio company Baltik Vairas was also mentioned (the only investment from Lithuania this time). Our focus was on building the top management team, transforming the client base, digitalizing and automating production; thereby growing the company’s sales 4x and transforming Baltik Vairas into a future-proof market leader. This investment was also granted the RealDeals European Private Equity Deal of the Year 2020 award (the first such award for the most successful deal from Lithuania).

Link to the report: Invest Europe “Private Equity in CEE: Creating Value and Continued Growth”

2020 marked a decade of LitCapital’s EUR 25 million debut-fund LitCapital I

11/02/2021

2020 marked a decade of LitCapital’s EUR 25 million debut-fund LitCapital I, which was raised in 2010 together with the EIF (European Investment Fund) under the JEREMIE (Joint European Resources for Micro to Medium Enterprises) program.

Over the lifetime of the fund, the net average annual return exceeded the Cambridge Associates Emerging Markets Private Equity & Venture Capital Index returns in Europe by 9 percentage points. In addition, according to the PME (public market equivalent) measure, which reflects the fund manager’s skill to generate returns (Alpha) and equates the fund’s cash flows to respective investments into the OMX Baltic Benchmark, the fund outperformed the public market by 7 pp on the fund level and by more than 19 pp on the private LPs’ level net of fees over the period of ten years.

In 2020 alone, the fund generated EUR 6.83 million net income (EUR 12.7 million in 2019), and the EBITDA of the portfolio companies grew at an average of 40%.

The fund has already realized a major portion of its investments. With seven investments sold, the cumulative net income of the fund has reached EUR 33.1 million, generating 3.2 CoC multiple and 25% gross IRR.

LitCapital – first private equity fund from Lithuania to win Central and Eastern European Deal of the Year 2020 Award

03/11/2020

Winner

LitCapital fund becomes the first private equity fund from Lithuania, to win the European Private Equity Awards. LitCapital winds in Central and Eastern European Deal of the Year 2020 category for the outstanding investment in Baltik Vairas.

The Awards

The 19th annual Private Equity Awards are the longest running and most prestigious Private Equity awards ceremony in Europe.

Deal of The Year Category

Finalists for the Deal of the Year awards are established through research undertaken by Real Deals, in association with Cass Business School and Preqin.

Baltik Vairas investment

The investment was done in 2013 into Baltik Vairas, the largest electrical and city bicycles developer and producer in Nordics and CEE. In 2019 the Company had revenues in excess of EUR 70M. The investment delivered 5.7x CoC and >34% IRR.

LitCapital has signed an agreement to acquire remaining stake in optical technology company UAB Altechna

23/10/2020

LitCapital makes additional investment into Altechna by acquiring 60% of shares and increasing the ownership up to 100% of share capital. This investment will allow the company to implement ambitious development plans and will allow it to grow even faster. The founder of the company dr. Gintas Šlekys and other shareholders will continue to invest and develop other laser product focused companies which are owned by them.

Altechna is an innovative optical technology company that has been demonstrating sustainable and consistent growth for a long time. We sincerely thank dr. Gintas Šlekis and his brothers Alfredas and Petras for many years of developing the business and building the team of UAB Altechna. Altechna will continue to actively invest in attracting top talents, developing cutting edge technology, acquisition of technological equipment, developing customer service and supply chain management.

The Group consists of Altechna UAB, a producer and supplier of custom laser optics and laser accessories, and Altechna Coatings UAB, a producer of optical coatings and supplier of services in the optical technology field. The Group provides innovative technological solutions and custom design of laser optics for industrial and R&D customers.

LitCapital LcX Opportunity Fund successfully closed at EUR 34 million

12/10/2020

Private equity fund management company LitCapital successfully closed its second fund — LitCapital LcX Opportunity Fund at EUR 34 million. All investors of the predecessor fund have made commitments into the new fund, almost all of them have increased their commitments.

In addition, LitCapital managed to attract key institutional Baltic pension fund investors. Solid fund size and willingness of Fund investors to co-invest provides LitCapital with opportunities to provide substantial growth capital investment to companies in the range of EUR 3-10 M per company. In addition, LitCapital LcX Opportunity Fund geography has expanded into all Baltic countries, Nordics and Poland.

LitCapital I fund exists NNL

15/02/2020

Private Equity Fund LitCapital I, has sold all of its interest in NNL. NNL is a Lithuanian company, which provides warehousing and logistics services, mainly specializing in distribution of chilled and frozen products. The company which has been partly acquired in November, 2012, owns and operates frozen and chilled products warehouses with approximately 20 000 sq. m. in Lithuania and Latvia. NNL is the only independent temperature-controlled food products logistics company in Lithuania that is not involved in product trade/wholesale. The Company also provides international forwarding services. In 2018, the company’s revenue stood at 16.1 m. Eur, with a total number of personnel exceeding 250.

Since being established in 2004, NNL has grown to be a regionally known player. Currently, the company operates within several business sectors: 3PL (or third party) logistics under Nordnet in Lithuania and Latvia, warehousing services and real estate under NNL Termo, and international forwarding (LitCargo). On a yearly basis, NNL handles up to 200 000 picking and transportation orders, transports 30 million kilograms of frozen foods, up to 8 million kilograms of chilled foods, and up to 1 million kilograms of fish on ice.

Further, Litcargo which deals with partial truckload freight and international logistics services throughout Europe, serves over 400 producers and importers. This includes the largest retail chains in Lithuania such as Maxima or Norfa. As of today, the company delivers goods to Latvia and Estonia on a daily basis, and to Western Europe at least once a week.

Litcapital I’s Founder and Managing Partner Mr Šarūnas Šiugžda, said that “It was a true pleasure to work with NNL’s management team. Both Mr Česlovas Kazlauskas and Mr Danielius Merkinas have shown an exceptional level of professional throughout our partnership giving me sufficient confidence that the company is in good hands.” Whilst summarizing the achieved results, Mr Šiugžda added, that “NNL has has not only surpassed the market in terms of growth, expanded portfolio of high quality services, but developed a unique and effective approach to sales and achieved operational excellence well above expectations, all thanks to knowledgeable team of managers”.

LitCapital’s Fifth Successful Exit – MPG

02/07/2019

LitCapital, a dedicated private equity growth investor in the Baltics, has fully exited and closed the transaction of a share sale of UAB Medicinos Paslaugų Grupė (“MPG” or the “Company”) to Affidea. MPG is a leading private healthcare service provider in Lithuania with a presence in vaccination & occupational services (through affiliate UAB Endemik), diagnostic imaging and second level consultation clinics. This is the fifth exit from LitCapital I KŪB fund.

LitCapital invested in MPG in 2015 to support its ambitious growth plan and finance substantial part of company’s investments in the equipment, service quality and brand strengthening. In addition to that, the investment allowed to acquire the oldest privately-owned laboratory test and vaccination market leader in Lithuania – Endemik UAB.

„During a short period of more than three years MPG demonstrated impressive growth. Investments in the newest equipment, renovation of existing clinics and opening of modern new ones allowed to significantly improve service level and customer satisfaction. Now the company is ready for its new chapter and further growth with a support from international player – says Šarūnas Šiugžda, Founder and Managing Partner of LitCapital.

Demand for high quality healthcare services in Lithuania has been growing at a healthy pace during the last few years. Ambitious management team with a focus on customer satisfaction and business efficiency has led to continuous improvements in the company’s financial results. Business revenues increased nearly by 50% and EBITDA grew by more than five times during the ownership of LitCapital. An exit process attracted strong interest from strategic and financial investors.

Swedbank Investment Banking Lithuania acted as a financial adviser and TGS Baltic was a legal counsel to the seller. Law firm WALLESS was a legal advisor to the buyer.

LitCapital Fourth Exit – Baltik Vairas

01/07/2019

LitCapital, a dedicated private equity growth investor in the Baltics, has successfully exited Baltik Vairas, a leading e-bike and bicycle manufacturer in Nordics and CEE. Baltic Bicycle Trade, a parent company of Baltik Vairas was acquired by a KJK Management advised fund. This is the fourth and so far the largest exit from LitCapital I KŪB fund.

LitCapital together with a Co-Investor Asgaard A/S invested in Baltic Bicycle Trade in 2013. The goal of the investment was to finance the venture for development and manufacturing of electric bicycles in Lithuania. Baltic Bicycle Trade took over Baltik Vairas after one of the venture partners decided to withdraw from it. All operational e-bike activities were moved to Baltik Vairas afterwards with the aim to create a leading e-bike and bicycle manufacturer in Europe. Baltik Vairas focused on becoming a preferred production partner to European brands with a perfect position to offer large scale and highly efficient service accompanied by a deep product development experience and know-how.

“With continuous support from LitCapital and Asgaard A/S the company focused on adopting LEAN principles by transforming its processes and culture and became one of the most efficient companies in the industry. It now is perfectly positioned to grow further to become an even more serious player in Europe’s cycling industry” – commented Niels Peter Pretzmann, Chairman of the Board at Baltik Vairas

„We invested more than 6 years ago with the aim to create a sizeable company within a relatively short period of time. With the help of a great management team, we supported building core competencies that the company didn’t have at the time, specifically, in areas like international sales, customer support, purchasing & supply chain management, finance and human resources.” – says Šarūnas Šiugžda, Founder and Managing Partner of LitCapital.

The demand for electric bicycles in Europe has been growing at a very fast pace for the last few years and is expected to increase further as a result of increased environmental awareness and ever growing need for convenient and clean transportation in urban areas. Furthermore, advances in e-bike technology allows to tap previously unavailable opportunities in such niches like cargo e-bikes. Favorable market conditions and management focus on operational excellence led to continuous improvements in the company’s financial results. The company’s revenues reached more than EUR 70M and EBITDA increased by more than 4 times during the ownership of LitCapital and Asgaard A/S. An exit process attracted a very strong interest from strategic and financial investors. All management team members of Baltik Vairas are staying with the company and will continue to execute the growth strategy going forward.

Swedbank Investment Banking Lithuania acted as a financial adviser and TGS Baltic was a legal counsel to the sellers.

LitCapital invests into Audimas AB

02/08/2018

LitCapital investment management company has acquired a controlling stake of Audimas AB shares (60%). According to the shareholders’ agreement, from now on 92% of Company’s shares will be managed jointly with Mr. Rimvydas Povilaitis, Mr. Arvydas Povilaitis and Mrs. Ona Balžekienė. Raised capital will allow the company to implement ambitious development plans by using additional competences of the new investor.

Audimas AB is the most well-known sportswear brand in Lithuania. The company is also the leader in the premium sportswear market segment, providing product development and production management services to the world-class premium sportswear brands. Company’s strong competitive advantage is short lead time and exceptional product quality. The largest value-added services such as product development, production resource planning and management, customer services are managed by the company, while lower value-added services are sourced from external service providers in EU or EU associated countries.

To maintain Audimas’ competitive edge, the company will continue investing into the most advanced manufacturing technologies, customer service systems and production capacity development. “Our goal is to invest in the most advanced technologies to be technologically integrated with our customers and to become the most modern premium class sportswear manufacturer in Europe. We will also be looking for new production resources in other countries, because of the lack of labour force in Lithuania. Audimas own brand retail business will also be actively looking for various opportunities to expand to foreign markets” says Šarūnas Šiugžda, LitCapital Founder & Managing Partner.

LitCapital Successfully Exists Brolis Semiconductors

18/09/2017

LitCapital, a dedicated growth equity investor in the Baltics, has successfully exited Brolis Semiconductors. This is the third successful exit completed by LitCapital I KŪB fund.

LitCapital was the very first investor in „Brolis Semiconductors“ technology company which was founded in 2011 after two brothers Kristijonas and Augustinas Vizbaras completed PhD studies in physics at Technology University of Munich (TUM). The company develops semiconductor infrared technologies focused on laser and sensing markets. LitCapital invested close to EUR 3M.

„We invested almost 6 years ago because of high competence the founders gained in TUM and unique technology which they were developing. The application of this technology could be very wide and this was the opportunity and curse at the same time. You can’t afford trying too many opportunities when you are very small company. Second, we invested into this company because of the semiconductors technology, which is a huge global market with high growth potential. Traditionally, Lithuanian laser sector competence is based in relatively narrow solid state laser segment with applications mostly in science and R&D areas. Semiconductor technology is new competence in Lithuanian laser sector.

LitCapital investment allowed achieving all important initial milestones for the company, such as establishing laboratory, assembling a team of researchers, patenting its technology and starting a relationship with global blue-chip technology customers and finally reaching to international blue-chip investors. We see Brolis Semiconductors as an extremely successful investment that has strengthened high tech sector in Lithuania.

We are impressed by the speed of technological improvements and business growth and wish them to maintain same pace in the future. Especially because our exit is part of a new investment round when one of the leading global laser system technology companies would join as a new investor. In case it is completed successfully, it will mark a new step not only in this company, but will make a huge positive effect to the whole laser sector of Lithuania in a comparable way like it already happened to biotech sector more than 10 years ago. “- says Šarūnas Šiugdža, Founder and Managing Partner of LitCapital.

LitCapital achieved return on investment exceeding 20% IRR. In 2016 LitCapital has divested its holdings in Putokšnis and Lignoterma, which also generated solid positive returns to LitCapital investors. Currently LitCapital has ownership in NNL LT (warehousing, logistics), Altechna (optics, optical coatings), Eldes (smart intrusion alarm systems), Baltik Vairas (electric and city bicycles), MPG (healthcare clinics chain).

LitCapital’s Second Exit – Lignoterma

22/07/2016

Growth capital fund LitCapital has signed UAB “Lignoterma“ share sale agreement with AB “Amilina”, controlled by international company „Roquette Freres“ and Mr. Danas Tvarijonavičius. This is a second full exit from LitCapital I KUB fund.

Lignoterma was the first investment of LitCapital I KŪB fund made back in the beginning of 2011 Lignoterma is a renewable energy generation company that started its activities in 2013. The company is based in Panevėžys and supplies heat to AB “Amilina”, one of the largest producer of starch, glucose, gluten and feedstuff in Northern and Eastern Europe. The power of biomass thermo power plant exceeds 32 MW and total investment amount including borrowed funds into the Company was more than EUR 15M.

“We are very pleased with another good investment. Lignoterma is very successful company that allowed to optimize production expenses and ensured diversified and independent energy supply to its customer. In addition to that, there is a number of technological innovations implemented in the power plant. For instance, it can use various inputs and produces hot water, steam and hot oil” – says Šarūnas Šiugžda, Managing Partner of LitCapital.

Lignoterma is a second fully exited investment from LitCapital I KŪB fund. In January 2016 the fund divested shares of Putokšnis and in the middle of 2015 it reduced its stake in Brolis Semiconductors.

LitCapital has invested into the development and manufacturing of electric bicycles

15/03/2013

Sixth investment has been added to LitCapital’s investment portfolio after the investment agreement with Baltic Bicycle Trade, UAB was signed. Until 2013 BBT has been involved in bicycle wholesale and retail sales in Baltic region distributing Panther branded bicycles. Currently the company is owned by Panther International and company’s management. In 2012 the decision was made to concentrate all activities related to the development, manufacturing and sales of electric bicycle in BBT. Fund will invest between 5 to 10 m LTL into the company.

The purpose of the investment is to finance the development and manufacturing of electric bicycles in Lithuania and to create strong brand name in targeted markets. Until now Panther International has been concentrating the development of electric bicycle in Germany. Manufacturing took place in a company Baltik Vairas, UAB based in Šiauliai, Lithuania. According to the investment agreement electric bicycle development functions are going to be transferred to BBT in Lithuania. Invested capital will be used to finance the development of electric bicycle technology, own brand creation, working capital and sales & marketing expenses

The decision to increase efforts dedicated to the development of electric bicycle fully reflects trends observable in Western Europe. Sales of electric bicycles are growing at a much faster rate than the sales of conventional bicycles. It is expected that more than 90% of production is going to be exported to Western Europe.

LitCapital has signed the investment agreement with NNL LT UAB

02/10/2012

LitCapital added a fifth company to its investment portfolio by signing an agreement to invest into a third party logistics (3PL) company NNL LT UAB. The investment will be used to support and facilitate further business expansion. Main business activities of NNL LT are logistics, warehousing, and expedition services. NNL LT is comprised of two companies – Nordnet UAB and Tehoreal UAB. The investment is particularly attractive because NNL LT UAB is the only independent temperature controlled food products logistics company in Lithuania covering the full service range.

Nordnet UAB is specialized in services for chilled and frozen products logistics. Currently, Nordnet mainly serves Lithuanian market, offering daily warehousing, order picking and transportation services as well as providing on-demand cargo forwarding and transportation for freights. The integrated company’s services’ offering reflects the developing markets’ trends, where one-stop logistics solution providers acting as full supply chain managers are increasingly more popular.

Nordnet UAB now has approximately 130 employees. Top Management have been with the company since its founding as the same people are its shareholders too. They have educational background in logistics and business management as well as many years of experience in logistics sector, successfully leading and growing Nordnet business even during the general economic down turn.

Currently the main clients of Nordnet UAB are the biggest Lithuanian retailers, producers, importers and distributors of frozen and chilled food products. Lithuanian frozen and chilled products markets in 2011 increased by 11% and 8% respectively. Because of changing general life style and the need for convenience the frozen and chilled foods market substantial growth is forecasted for the upcoming years in the whole of Europe.

LitCapital invests into Brolis Semiconductors

19/01/2012

Venture capital fund LitCapital further expands its investments’ portfolio. The newest investment agreement was recently signed with a semiconductor technologies company Brolis Semiconductors UAB that specializes in the design and development of long-wavelength mid-infrared laser diodes. The company also plans to use financing from the EU Structural Funds for the development of lasers’ production technology in order to apply it to the commercial market.

Brolis Semiconductors’ UAB founders are scientists with the background in nanoelectronics, at the moment finishing their PhD studies at the Walter Schottky Institute, Technische Universität München, where they were engaged in the research of complex semiconductor compounds’ growth technology and these compounds’ application in the development of novel optoelectronic devices. Mastered technology led to a breakthrough in the development of world-record long-wavelength mid-infrared semiconductor and quantum cascade lasers of unique specifications.

The company plans to further improve and optimize this technology to make it reproducable and reliable, which will allow its application to the commercial market. Brolis Semiconductors UAB has already attracted the attention of several high-tech companies from US and EU, which have expressed serious intentions of buying their products.

Prof. Markus-Christian Amann, Brolis Semiconductors UAB co-founder‘s scientific advisor and Director of the Walter Schottky Institut and Dean, Dept. of Electrical Engineering and Information Technology, Technische Universitat Munchen:

“Brolis Semiconductors UAB commercializes high-tech compound semiconductor materials and devices for advanced infrared applications. Already during their research work at this institute, the co-founders attracted high international visibility and acknowledgement in this rapidly growing field. With their leading semiconductor technology and processing skills, Brolis Semiconductors UAB is expected to become a major international supplier for innovative compound semiconductor wafers and devices.”

LitCapital Enters the Market

31/05/2010

This Growth Capital Fund is a key part of the Holding Fund’s activity and will result in a total of up to EUR 20 million being invested into Lithuanian micro, small and medium enterprises over the next few years. Investments by LitCapital will be made in enterprises with high growth potential during their early growth stages (seed, start-up and expansion phases).

The EUR 20 million Fund will consist of EUR 14 million provided by the EIF managed JEREMIE Holding Fund and EUR 6 million raised from institutional and private investors.

Mr. Richard Pelly, Chief Executive of the European Investment Fund stated, “Through the JEREMIE Holding Fund, the Lithuanian Government has wisely established a platform which will stimulate the growth of the venture capital industry in Lithuania. EIF is pleased to have been able to make this happen through managing the Holding Fund which will deliver long term benefits to the whole SME sector.”

The Fund will invest up to EUR 3 million into single SMEs with the aim to build a diversified portfolio of high growth enterprises selected by the professional and committed management team of LitCapital.