June 17, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

GAI News shared the launch of the INVL Sustainable Timberland and Farmland Fund II (STAFF II) by Lithuania’s INVL Asset Management on November 12, 2020. 

Founded in 1991 as part of the Invalda INVL group, INVL Asset Management has 30 years of experience in managing private equity assets and growing leaders across the Baltic and CEE regions. The group’s companies manage pension funds, mutual funds, private equity and alternative investments, as well as individual portfolios for a total AUM exceeding EUR 1 billion (US$1.18 billion).

This fund was launched with the intention of heavily focusing on the sustainable management of forests and arable land, taking into account not just conservation of natural resources, but also corporate social responsibility.

Martynas Samulionis, a partner of the INVL STAFF II, commented, “Investors increasingly want their investments to bring not only a financial return but also be sustainable in nature and so they are showing an increased interest in opportunities based on ecological, social and sustainable management criteria and principles. We therefore seek to become one of the leading and most trusted funds in the European Union working with sustainable alternative investments while also creating long-term benefits not just for investors but also protecting nature for future generations. This is a key investment philosophy for STAFF II.”

By December 2020, the fund had raised US$38.3 million though an initial offering toward its targeted goal of EUR 100 million (US$118 million) from private investors to back sustainably-managed agricultural land and forests in the Baltic Sea region and Central and Eastern Europe. 

Samulionis noted that STAFF II will initially start with a concentrated focus on agricultural land and coniferous forests in the Baltics that show high productivity and potential for consolidation before geographically expanding outward.

“We’ll start the fund’s activities ‘closer to home’, looking for acquisitions in the Baltic countries,” said Samulionis. “We will invest in Baltic coniferous forests and agricultural land with a high level of productivity and big consolidation potential. Later we plan to expand the portfolio in Eastern EU countries where investment returns are attractive and the regulatory environment is stable.”

It was also in December 2020 that STAFF II made its first capital commitment, acquiring seven companies from ag business group Linas Agro Group for EUR13.6 million (US$16.45 million). 

These companies indirectly own approximately 2,000 hectares (4,942 acres) of farmland in central Lithuania, which will be leased back for a period of 25 years by Linas Agro.

Today, GAI News is sharing that STAFF II has successfully raised a further EUR 18.5 million (US$22 million) through a second offering to hold a second close at EUR 51 million (US$60.76 million). 

“The level of interest and trust demonstrated from investors is a welcome recognition for this vehicle and the STAFF II team,” said Samulionis in a press release announcing the fundraise.

“Through this second offering, we have already exceeded half the fund’s initial target size of EUR 100 million. We have already successfully invested in the Lithuanian and Latvian market and with this new capital we will be able to expand our activities both in the Baltic regions and in Central and Eastern Europe.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.