“It is clear that the pandemic crisis partly influenced the fund’s establishing. For some businesses, alternative financing sources could become vital, considering that bank credit opportunities are not always available to everyone. However, this will not be a short term solution – the demand for alternative capital has been growing naturally as of late, and this comes as no surprise – the debt levels of Lithuanian companies are still relatively low compared to Western European states and shareholder capital in the financing source structure comprises a disproportionately large part – an entire 65 per cent. We hope to become a visible non-bank credit market player,” BRAITIN partner Rytis Davidovičius said.
According to him, both private individuals and legal entities in Lithuania and abroad have expressed interest in investing in the fund; agreements have been reached on the fund’s starting capital with an institutional investor actively operating in the region. The fund’s founders predict that the majority of BRAIT Private Debt Fund I loans will be issued as working company capital, investment and procurements will also be financed. The fund will invest in private business debt, secured by a primary or secondary mortgage.
The typical planned fund loan is to be 2-3 years in duration, ranging from 200 thousand to 2 million euro in size.
Currently, BRAIT manages real estate funds, with the value of managed property valued at almost 60 million euro. 67% of the company’s shares are held by Audrius Žiugžda, 33% - R. Davidovičius. A. Žiugžda is the former head of the banks SEB and Šiaulių Bankas, while R. Davidovičius oversaw the Lewben business group’s business development in 2016-2019 and prior to this, led the investment management company Orion Asset Management for five years, in 2007-2010 having led the Private Banking and Institutional Investor departments in the investment bank Finasta.
