VKG Elektrivõrgud is the first infrastructure investment in Estonia under BaltCap’s new EUR 200 million infrastructure fund (BInF II). The acquired power network is located in the municipalities of Narva, Narva-Jõesuu, and Sillamäe. The area covered by the network is home to 71,000 people and several industrial undertakings are located there. The annual electricity distribution volume of VKG Elektrivõrgud in 2022 was approximately 250,000 MWh. The network consists of 951 km of power lines and 372 low, medium, and high voltage substations.
We advised BaltCap on structuring the transaction, performing legal and tax due diligence, as well as negotiating and concluding contracts. We also advised the client on concentration proceedings before the Estonian Competition Authority.
The TGS Baltic team was led by Kadri Kallas and included Helmut Pikmets, Triin Kaurov, Peeter Viirsalu, Triinu Järviste, Mirko Kikkamägi, Sergei Jegorov, Vitali Sipilov, Liisa Levandi, Siret Saks, Merli Mäesalu, Mari-Liis Orav, Marija Toomjõe, and Artur Piisang.
BaltCap is the largest and most experienced private equity investor in the Baltics, active in buyout, growth, venture, and infrastructure investments. Since 1995, BaltCap has invested in more than 100 businesses in various industrial sectors and raised a total of more than EUR 950 million in capital. BaltCap has a team of more than 40 investment professionals working in offices in Tallinn, Riga, Vilnius, Warsaw, Helsinki, and Stockholm.
BaltCap has a new EUR 200 million infrastructure fund (BInF II). The fund’s investments focus on renewable energy and public-private partnership (PPP) transport and infrastructure projects with a high social impact in the Baltic states and Poland. The anchor investor of BInF II is the European Investment Bank, and Swedbank, LHV and SEB pension funds and Citadele Bank have also invested in the fund.
