May 4, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Launched in November 2020 under the management of INVL, the leading investment management and life insurance group in the Baltics, with an initial target of EUR100 million (US$110.5 million), the INVL Sustainable Timberland and Farmland Fund II (STAFF II) operates 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.

INVL is the leading investment management and life insurance group in the Baltic region managing pension funds, private equity and alternative investments, life insurance interests, and mutual funds.

In business for 30 years, the group engages with more than 290,000 clients across Lithuania, Latvia, and Estonia, along with international investors that have entrusted the group to manage more than EUR1.7 billion (US$1.73 billion) in assets.

The fund targets sustainably developed forest and farmland in the Baltic Sea region and the countries of Central and Eastern Europe on behalf of qualified European investors. Choosing to deploy capital in EU countries that offer attractive returns and have a stable regulatory environment, INVL stated that STAFF II adheres to global standards of sustainable management practices and in consolidated high-quality forests and land holdings, places a strong emphasis on sustainable forest and farmland management and social responsibility. 

By December 2020, the fund had raised US$38.3 million through an initial offering toward its targeted goal of EUR 100 million (US$102 million) from private investors to back sustainably-managed agricultural land and forests in the Baltic Sea region and Central and Eastern Europe.

At the same time, STAFF II made its first capital commitment, acquiring seven companies from ag business group Linas Agro Group for EUR13.6 million (US$13.88 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.

Within months, in June 2021, STAFF II raised a further EUR18.5 million (US$18.9 million) through a second offering to hold a second close at EUR 51 million (US$52 million).

Vaidotas Rūkas, CIO at INVL, noted in July of last year that investors see the alternative asset investment class as an attractive option for diversifying an existing portfolio given their greater stability and favorable risk-return ratio when faced with market volatility.

The thesis continues to prove out, as the INVL STAFF II fund announced it has secured an additional EUR9.4 million (US$10.4 million) in capital commitments to reach a size of EUR 90.7 million (US$100.2 million). 

“Investors’ trust in our fund opens up more opportunities for growth and creates long-term value for investors,” said Martynas Samulionis, managing partner, STAFF II.

“At present we have put investor money to work in the Lithuanian, Latvian, and Romanian markets, and we continue actively seeking further acquisitions in Central and Eastern European countries.”

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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