Signet Bank signs investment agreement with FlyCap Mezzanine Fund II AIF

Signet Bank has signed an agreement with KS FlyCap Mezzanine Fund II AIF stipulating a placement of EUR 1.1M with the investment fund. Coupled with the contribution made by the ALTUM financial institution, this will lead to an overall increase in capital under management by EUR 2.9M.

FlyCap Mezzanine Fund II AIF is a growth capital fund providing mezzanine loans to local businesses. The fund prefers companies in healthcare, business services, IT, manufacturing and exports that have proven their market value, and focuses on environmentally friendly business and CO₂ mitigation projects in particular.

Aiming to increase the amount of financing available to local entrepreneurs, Signet Bank relies not only on traditional lending – we continually seek alternative solutions as well. The investment strategy of FlyCap Mezzanine Fund IIAIF is consistent with the goals of Signet Bank, and its management team consists of professionals who have vast experience in financing local businesses. Our stake in this fund is a consistent step on the path towards developing the entrepreneurial environment in Latvia and facilitating socially responsible projects. FlyCap Mezzanine Fund IIAIF has the mission of promoting business development in Latvia, which is consistent with Signet Bank’s priorities and philosophy.

Roberts Idelsons, CEO at Signet Bank

FlyCap Mezzanine Fund II AIF intends to make about 15 investments in companies active within the Baltics, issuing loans to businesses with turnover of at least one million euros within the past 12 months and exhibiting good growth and profit potential. The fund is currently valued at EUR 21.3M. The intended amount of investment is EUR 1–3 per company.

We are glad to have another institutional investor from Latvia. Signet Bank is an active and professional player in Latvia’s financial market. We have had some experience working with Signet Bank already, and we see that our priorities are well-aligned.

Jānis Skutelis FlyCap Chairman of the Board

Currently, investors in the fund include the ALTUM state development finance institution, a number of private institutional investors, and the FlyCap team themselves.