New bond fund – Capitalica Debt Fund – is established
Additional investment opportunities are opening for investors – the new investment fund Capitalica Debt Fund of the SBA group’s investment management company Capitalica Asset Management is starting to operate. Ellex’s in Lithuania Banking & Finance practice associate partner Gytė Maleckaitė and senior associate Domantas Gudonis advised the client on the legal issues of the establishment of the fund and the issue of obtaining permission from the Bank of Lithuania.
The fund will invest in high-yield bonds of companies from the Baltic region and other European countries. Priority will be given to small and medium-sized enterprises with limited access to conventional bank financing. The fund will aim for an average annual return of 10 per cent and plans to distribute up to 5 per cent of funds periodically to investors. The fund will promote investments with positive environmental or social qualities, or a combination of such characteristics.
Ellex’s expert in ESG Tadas Kavaliauskas assisted the company in the implementation of the complex regulation requirements when it comes to promoting investments with an ESG focus.
The target size of the fund during its activity period is up to 100 million. euros. This capital will be collected by attracting funds from private and institutional investors and investing them in target companies.