BaltCap Revenue Hits €1.25bn as Baltic Private Equity Shows Growth

James Sterling Author

2026-05-13 08:35 • 4 min read

The Baltic private equity market has signaled a period of robust recovery and consolidation, according to the latest financial disclosures from BaltCap, the region’s largest fund manager. In 2025, companies within BaltCap’s portfolio reported a combined revenue of €1.25 billion, marking a 6.5% increase over the previous year. This growth comes despite a backdrop of significant geopolitical uncertainty and fluctuating interest rates that have historically cooled investment activity in Eastern Europe.

While the 6.5% annual growth indicates steady progress, the longer-term trajectory is even more striking. Since the start of 2023, portfolio revenues have surged by 52%, while earnings before interest, taxes, depreciation, and amortization (EBITDA) have climbed by 35%. For international observers, these figures serve as a barometer for the underlying health of the Baltic economies—Estonia, Latvia, and Lithuania—which have transitioned from emerging markets to sophisticated hubs for tech and infrastructure investment.

A Resilient Performance in Volatile Times

The performance of BaltCap’s funds suggests that the regional private equity ecosystem is maturing. Simon Gustainis, a partner at BaltCap, noted that the team remained focused on value creation during a period characterized by an “unpredictable geopolitical environment.” This resilience is particularly visible in the firm’s ability to maintain a combined EBITDA of €88.5 million in 2025, nearly matching the previous year’s high-water mark despite increased operational costs across the continent.

However, the data also reveals a nuanced picture of the market. While revenue growth is strong, the slightly slower pace of EBITDA growth (35% vs 52% revenue growth since 2023) suggests that companies are navigating a high-inflation environment where top-line gains are partially offset by rising input costs and labor expenses.

Breaking Down the Portfolio Performance

BaltCap currently manages 28 companies across six distinct funds. The heavy lifting in 2025 was primarily driven by the Private Equity Fund III (BPEF III), which accounts for the lion’s share of both revenue and earnings.

The dominance of BPEF III, contributing nearly €1 billion in revenue, highlights the firm’s shift toward larger, more established mid-market enterprises. Conversely, the infrastructure funds, while smaller in revenue, often represent long-term, stable cash flows that provide a hedge against market volatility.

Strategic Exits and the ‘Baltic Exit’ of the Year

For UK-based investors and analysts, the most compelling aspect of the 2025 report is the evidence of successful liquidity events. The sale of Ridango—a provider of intelligent public transport software—to the European growth capital firm Bregal Milestone was a standout moment. The transaction was officially recognized as the “Baltic Exit Deal of the Year,” underscoring the demand for Baltic-grown technology within the broader European private equity landscape.

Additionally, the sale of the organic food retailer “Livin” in 2025 achieved the highest cash multiplier in the history of BaltCap’s growth investments. These exits demonstrate that despite the region’s proximity to geopolitical flashpoints, high-quality assets continue to attract premium valuations from international buyers.

Future Horizons and Investment Commitments

Looking ahead, BaltCap has committed over €150 million to add-on acquisitions and growth capital between 2023 and 2025. This strategy of “buy-and-build” is most evident in the Piletilevi Group, a ticketing platform where expansion investments exceeded €90 million.

The firm is also betting heavily on the silver economy. Expansion in the senior care sector was executed simultaneously across all three Baltic states through the Pihlakodu (Estonia), Gemma (Lithuania), and Adoro (Latvia) brands. By consolidating fragmented sectors like elder care and ticketing, BaltCap is attempting to create regional champions capable of eventually attracting global interest or public listings.

While the 2025 results are positive, they do not prove that the Baltics are entirely insulated from global headwinds. The modest 6.5% annual growth rate suggests a transition from the hyper-growth phase seen in 2023-2024 to a more sustainable, albeit slower, pace of expansion. For now, the data confirms that the Baltic mid-market remains a viable and growing destination for institutional capital.

Source: ELTA