INVL Private Equity Fund II, the largest private equity fund in the Baltics and part of the Invalda INVL group, signed an agreement to acquire 75% stake in Eesti Keskkonnateenused (EKT), Estonia's largest waste management group.
The transaction is expected to be completed by the end of 2025. It is subject to approval by the Estonian Competition Authority and fulfilling other conditions stipulated in the agreement. Current EKT's shareholders (management) will retain a 25% stake.
The EKT group provides a wide range of waste management and municipal services, including the collection and processing of household waste, secondary raw materials, construction waste, hazardous waste and bio-waste, as well as street cleaning. The group had consolidated revenue of EUR 77 million in 2024 and approximately 800 employees.
"Having the largest private equity fund in the Baltics become a shareholder opens more opportunities to successfully implement our growth strategy. The group is currently working on a major hazardous waste incineration project which will boost the existing capacity from 2,000 to 15,000 tonnes a year. We also see potential opportunities to expand our sorting and recycling capabilities to contribute even more substantially to Estonia's circular economy goals," says Argo Luude, the CEO of EKT.
INVL Private Equity Fund II Partner Vytautas Plunksnis says: "We have significant experience in the waste management business and in strengthening corporate leadership. We believe that together with EKT's current management team we can take the company to the next level."
"This deal continues one of the fund's fundamental investment themes - investing in leading Baltic region companies with further growth potential. It will be the first investment in Estonia by our private equity funds. We believe that investing in and developing the circular economy is important for the sustainable growth of the entire Baltic region," says Deimante Korsakaite, the Managing Partner of the INVL Private Equity Fund II and the INVL Baltic Sea Growth Fund.
The buyer was advised by EY (financial due diligence), EY-Parthenon (commercial due diligence), Sorainen (legal advisor) and Nomine Consult (environmental due diligence), while the sellers were advised by Eversheds Sutherland as its legal advisor.
The current nine-company portfolio of the INVL Private Equity Fund II's predecessor, the INVL Baltic Sea Growth Fund, which was established in 2019, includes Eco Baltia, the largest environmental management group in the Baltics.
The INVL Private Equity Fund II seeks to seize attractive opportunities across the Baltics, Poland, Romania and the broader EU. Its strategy is to make investments of EUR 10-60 million in companies from any sector which have the potential to become regional leaders in their industries, focusing on the acquisition of majority or significant minority stakes. Through active investment management, the fund aims to drive long-term value creation.
About INVL Private Equity Fund II
The INVL Private Equity Fund II, which held its first closing in February 2025 at EUR 305 million, is the largest private equity fund in the Baltics. It aims to build a diversified portfolio by acquiring majority or significant minority stakes in high-growth companies with investments of EUR 10 million to EUR 60 million. The fund focuses on businesses with strong potential to grow and compete amid intensifying global competition, targeting investment opportunities in the Baltic countries, Poland, Romania and the broader Europe Union.
The fund is managed by INVL Asset Management, the leading Baltic alternative asset manager, which is a part of the Invalda INVL Group with over 30 years of experience. The group's companies manage or have under supervision EUR 2 billion in assets across various investment strategies, including private equity, forests and agricultural land, renewable energy, real estate, and private debt. Additionally, the group provides family office services in Lithuania, Latvia and Estonia, manages pension funds in Latvia and invests in global third-party funds.
Asmuo papildomai informacijai:
Vytautas Plunksnis, Head of Private Equity at INVL Asset Management,
Vytautas.Plunksnis@invl.com
