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.