INVL Asset Management, a subsidiary of Invalda INVL, launches its second alternative investment fund for retail investors
03 Mayo 2023 - 8:29AM
INVL Asset Management, a subsidiary of Invalda INVL, launches its
second alternative investment fund for retail investors
INVL Asset Management, a company of the INVL
Investment Management and Life Insurance Group, has launched its
second alternative investment fund for non-professional investors,
with investments starting from EUR 5,000.
INVL Alternative Investment Fund II gives retail
investors access to private alternative asset classes by investing
in private companies, corporate private debt instruments and real
assets such as land, forests and infrastructure. The Fund
will aim for an average annual return of at least 8%.
"The success of the INVL Alternative Investment
Fund I, which we launched last year, has shown that there is a
strong demand in Lithuania for such funds, where nonprofessional
investors can grow their wealth. Last year such a fund attracted
more than 560 investors and over EUR 5 million.
Alternative investments are carried out in
private rather than public markets and are more complex and less
regulated. They are relatively high-risk but can provide stability
when public markets fluctuate. For example, one of the alternative
asset classes – real assets – has the ability of retaining their
value during periods of high inflation. Investments in alternative
assets are being chosen by an increasing number of professional
investors both globally and in Lithuania because of the opportunity
to diversify their portfolios.
However, most funds investing in alternative
assets are usually only available to large institutional investors
or informed investors who can spend up to EUR 125 000. INVL
Alternative Investment Fund II opens this opportunity to everyone
again", – says Vaidotas Rūkas, Head of Investment Management at
INVL Investment Management and Life Insurance Group.
Public opinion polls also show that more people
are discovering investment funds. According to the survey on the
investment, saving and retirement habits of the population
conducted by Spinter for INVL in April last year, one in four (25%)
of the population said that they invest. Of these, 17% choose
investment funds, which is higher than the share of respondents who
consider real estate or rental housing as an investment. Moreover,
the number of people who invest is growing consistently year on
year.
Aims to attract EUR 5
million
"INVL Alternative Investment Fund II launches on
2 May. It is expected to attract between EUR 5 million and EUR 8
million of investment. The fund units are planned to be distributed
within 7 months, by 30 November, but the distribution will be
suspended if the EUR 8 million is raised before then.
Alternatively, the Fund may organise a second distribution round at
a later date, but in any case, the value of the funds raised will
not exceed EUR 8 million.
"We choose to invest in alternative assets that
have the potential to grow in value and generate stable returns
over the life of the Fund. We also seek a balance between risk and
return by investing in assets that are normally subject to lower
fluctuations in value.
We intend to allocate a third of our funds to
private equity through collective investment vehicles (CIUs),
investing in companies in the Baltics and worldwide. The other
third will be allocated to private debt, both in the region and
globally. We intend to invest the rest amount in real assets such
as forests, agricultural land and infrastructure such as renewable
energy - solar, wind farms and others. INVL is offering a rather
unique opportunity for everyone in the market to invest in a
portfolio of these asset classes," – says V. Rūkas.
The fund will be open for 10 years, with an
option to extend it for another two years. Participants will have a
limited ability to withdraw from the fund early. In addition,
investors wishing to acquire units in INVL Alternative Investment
Fund II must not have acquired more than 50 ha of agricultural land
and 150 ha of forest land.
The fund will have a distribution fee of up to
2% - the earlier the investment and the higher the amount, the
lower the fee. An average annual return of 8% will be targeted, but
actual investment performance may be different and the management
company does not guarantee investment returns or that the fund's
performance objectives will be met. This fund has been approved by
the Bank of Lithuania and will be distributed by INVL Group
itself.
The formation of the first alternative
investment fund is completed
INVL Alternative Investment Fund I, launched in
January 2022, is now finalizing its investments. As planned, a
quarter of the fund's assets have been allocated to INVL
Sustainable Timberland and Farmland Fund II, which invests in
forests and land, and INVL Renewable Energy Fund I, which invests
in energy projects, and 20% has been allocated to Brookfield
Strategic Real Estate Fund IV, a global fund of real estate manager
Brookfield. The remaining one third comes from three private equity
investments: General Atlantic, a global private equity manager,
Blackpeak, investing in South East Europe, and the last planned
investment, EQT, a global private equity manager.
Even during the investment period, the fund is
already generating returns, with a return of 4.3% since inception.
The main contributors to the positive performance were the
investment in the INVL Sustainable Timberland and Farmland Fund II,
which gained 10.9%, and the temporary investments in GTC bonds
(4.2% gain) and the INVL Emerging Europe Bond Fund (+3.9%).
About the INVL group
INVL is the leading investment management and
life insurance group in the Baltic region. Its companies manage
pension and mutual funds and life insurance directions, individual
portfolios, private equity, and other alternative investments. Over
300,000 clients in Lithuania, Latvia and Estonia and international
investors have entrusted the group’s companies with the management
of more than EUR 1.9 billion of assets. In the business for more
than 30 years now, the group has solid experience in managing
private equity assets and building market players that are leaders
in their respective fields in the Baltic countries and Central and
Eastern Europe.
Contact person for further information: Vaidotas Rūkas, Chief
Investment Officer at INVL Asset Management, E-mail
vaidotas.rukas@invl.com
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