The European Investment Fund (EIF) said it is teaming up with the national promotional institutions of Estonia, Latvia and Lithuania to launch a Baltic Innovation Fund 3 (BIF 3) – a €225 million initiative to boost the region’s private equity and venture capital market.

The EIF will commit €75 million and each Baltic country will provide €50 million.

“BIF 3 aims to anchor both first‑time and experienced fund managers and is expected to mobilise up to €700 million in total investments in Baltic growth‑stage businesses,” said the EIF.

“The initiative will seek to develop a portfolio comprising around 70% private equity growth strategies, with the remainder going to late‑stage venture capital.

“The goal of BIF 3 is to support eight to 11 funds over five years, with up to 20% dedicated to climate‑aligned investments. The EIF will act as fiduciary manager, overseeing fund selection, due diligence and governance.

“The initiative builds on two previous initiatives – BIF 1 and BIF 2 – that since 2013 have mobilised more than €1.19 billion for companies in the region. The first two initiatives also attracted over €900 million in private capital.”