Baltic Investment Fund III

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The Baltic Investment Fund III LP is a private equity fund that will invest in medium-sized companies in Estonia, Latvia and/or Lithuania. The fund has a target size of €50 million. The fund will invest cash equity in medium-sized companies, with the objective of promoting the growth of the portfolio companies and achieving an attractive return over the medium term. Investment proceeds will be used to finance expansion projects. The investment advisor will take an active role in restructuring portfolio companies as required, and will demonstrate that small and medium-sized enterprises in the Baltic states can be restructured successfully. The fund will be represented on the Board of each portfolio company, and will impose high standards of corporate governance. The fund's behaviour will demonstrate that business conduct within a market-oriented economy must be legitimate, transparent and in accordance with sound business practices. The fund is a limited partnership registered in Jersey, the Channel Islands. Investors are limited partners. The investment advisor is BaltCap Management Ltd, a fund management company registered in Finland. The fund sponsors include SITRA (Finland), CapMan Capital Management Oy (Finland) and Suprema Securities Ltd (Baltics). The EBRD will commit up to €10 million to the fund. In addition, the Baltic Investment Special Fund, managed by the EBRD, will commit up to €5 million to the fund. Target size is €50 million. The fund will follow the EBRD's Environmental Procedures for Private Equity Funds. In implementing these procedures, the fund will assess potential environmental issues associated with its investments which are required to comply, at a minimum, with local and/or national health, safety, environmental and public consultation requirements. None. Mr Jarmo Rautiainen BaltCap Management Oy Tel. +358 9 6226 9041; Fax +358 9 6226 9040 E-mail: jarmo.rautiainen@baltcap.inet.fi