EIF Teams Up with Estonia Latvia and Lithuania to Mobilize €700 Million for Private Equity and Venture Capital Expansion

The European Investment Fund (EIF) has joined forces with Estonia, Latvia, and Lithuania to roll out the Baltic Innovation Fund 3 (BIF 3), a €225 million program designed to energize the private equity and venture capital landscape across the Baltic region.

Strong National and EU Backing

EIF is putting €75 million on the table, while each of the three Baltic countries is contributing €50 million.

The fund aims to support both emerging and experienced fund managers, creating a strong anchor for regional investment activities.

Analysts expect BIF 3 to mobilize up to €700 million in total investments targeting growth-stage companies.

Investment Focus and Strategy

BIF 3 plans to invest roughly 70% of its portfolio in private equity growth strategies, leaving the remainder for late-stage venture capital.

The initiative also earmarks up to 20% of investments for climate-aligned projects, signaling a commitment to sustainable growth.

Over the next five years, the fund expects to back eight to 11 individual funds, with the EIF serving as the fiduciary manager, overseeing fund selection, governance, and due diligence.

Building on Previous Success

This new initiative expands on the success of BIF 1 and BIF 2, which together have mobilized over €1.19 billion for Baltic companies since 2013 and attracted more than €900 million in private capital.

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“BIF 3 continues a strong tradition of public-private collaboration, strengthening the Baltic investment ecosystem,” said Marjut Falkstedt, EIF Chief Executive.

National Partners in the Region

In Estonia, the fund is backed by SmartCap, the state-owned national fund manager.

Latvia’s contribution comes from ALTUM, a state-owned organization that provides businesses and households with loans, guarantees, and venture capital investments.

Lithuania joins through ILTE, the country’s national development bank.

Together, these institutions aim to ensure robust support and management of the BIF 3 portfolio.

Impact and Consequences

The launch of BIF 3 is expected to significantly boost private equity and venture capital activity in the Baltics, offering early-stage companies access to funding and expertise.

By focusing on growth-stage businesses and climate-aligned investments, the initiative may also accelerate innovation and sustainable business practices in the region.

What’s Next?

Over the next five years, EIF and its national partners will monitor fund performance, select new investment opportunities, and aim to attract additional private capital.

The initiative will also track the climate impact of funded projects, ensuring alignment with sustainability goals.

Summary

BIF 3 represents a €225 million public-private investment effort across Estonia, Latvia, and Lithuania.

The fund seeks to mobilize up to €700 million, support 8–11 growth-focused funds, and dedicate part of its portfolio to sustainable initiatives.

With backing from EIF and national institutions, the initiative builds on previous successes to further energize the Baltic investment ecosystem.

Bulleted Takeaways

• EIF commits €75 million; Estonia, Latvia, Lithuania contribute €50 million each.
• Goal: Mobilize up to €700 million in total for growth-stage businesses.
• Investment split: 70% private equity growth, 30% late-stage venture capital.
• Climate focus: Up to 20% of investments dedicated to climate-aligned projects.
• National partners: SmartCap (Estonia), ALTUM (Latvia), ILTE (Lithuania).
• EIF role: Fiduciary manager, overseeing fund selection, governance, and due diligence.
• Historical impact: Builds on BIF 1 & 2, which mobilized €1.19 billion and attracted €900 million private capital.