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BaltCap

PRI reporting framework 2019

Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Innovation [SG 18] Communication [SG 19]

Direct – Private Equity

Overview [PE 01 - 02] Fundraising of private equity funds [PE 03 - 04] Pre-investment (selection) [PE 05 - 08] Post-investment (monitoring) [PE 09 - 13] Outputs and outcomes [PE 14 - 15] Communication [PE 16]

Direct - Infrastructure

Overview [INF 01 - 02] Fundraising of infrastructure funds [INF 03 - 04] Pre-Investment (Selection) [INF 05 - 09] Post-investment (monitoring and active ownership) [INF 11 - 16] Overview [INF 11] Infrastructure Monitoring and Operations [INF 12 - 14] Infrastructure Maintenance [INF 15] Stakeholder engagement [INF 16] Outputs and outcomes [INF 17 - 18] Communication [INF 19]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

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Basic information

OO 01. Signatory category and services

01.1. Select the services and funds you offer

Select the services and funds you offer	% of asset under management (AUM) in ranges
Fund management	0% <10% 10-50% >50%
Fund of funds, manager of managers, sub-advised products	0% <10% 10-50% >50%
Other	0% <10% 10-50% >50%
Total 100%

Further options (may be selected in addition to the above)

Hedge funds

Fund of hedge funds

01.2. Additional information. [Optional]

In June 2017, BaltCap established a new investment fund – BaltCap Growth Fund – with the planned size of €50 million that will be making growth equity investments in SMEs. This new fund is a brand-new instrument in the Baltic market with such an investment focus (making €0.5 to €3 million investments, targeting 15-20 companies) aiming to assist small companies to grow into market leaders and also increase exports. For more information about BaltCap Growth Fund please see http://baltcap.com/news/2017/baltcap-launched-a-new-eur-50m-regional-growth-fund.

Our recent most significant contribution to the environmental sustainability is the launch of BaltCap Infrastructure Fund. It is a new €103 investment fund established in June 2017 that is backed by European Investment Bank, European Bank for Reconstruction and Development, Nordic Environment Finance Corporation (NEFCO) and Baltic pension funds (for further information please see http://baltcap.com/news/2017/100-million-baltcap-fund-will-invest-into-infrastructure-of-the-baltic-states, http://www.baltcap.com/press/news/more-steam-for-baltcap-infrastructure-fund-ebrd-invests-20-million).

BaltCap Infrastructure Fund primarily focus on providing development capital for transport, renewable energy, energy efficiency and municipal infrastructure projects in the Baltic States. Infrastructure development is one of the key priority areas for the Baltic region to improve competitiveness, independency and meet environmental targets. At the same time the Baltic countries are facing an estimated funding gap of €6 billion for infrastructure projects. With the strong support from international financial institutions and local pension funds we can address this funding gap. It is the first time in the region when the Estonian, Latvian and Lithuanian pension fund assets will be deployed to develop infrastructure for future generations. What is equally important, the fund will create new jobs and by its focus on renewable energy and energy efficiency it will significantly contribute to the climate change agenda.

At the beginning of 2019, BaltCap together with JBIC IG Partners (a Japanese government backed private equity and venture capital firm) established a new €100m fund focusing on venture capital investments in the Nordic and Baltic region. It targets the so-called New Nordics which in addition to traditional Nordic countries also includes Estonia and other Baltic States. The Fund is called NordicNinja.vc and it focuses on early stage investments into ICT/Deep Tech sectors, including Autonomous Mobility, Digital Health, AR/VR/MR, Artificial Intelligence, Robotics and IoT.

NordicNinja.vc investors will include large Japanese technology corporations like Honda, Omron and others. The Fund will utilize global network in Tallinn, Stockholm, Helsinki and Tokyo.

OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

Estonia

02.2. Indicate the number of countries in which you have offices (including your headquarters).

2-5

6-10

>10

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

28 FTE

02.4. Additional information. [Optional]

OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

Yes

03.3. Additional information. [Optional]

OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2018

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

Not applicable as we are in the fund-raising process

04.4. Indicate the total assets at the end of your reporting year subject to an execution and/or advisory approach.

Not applicable as we do not have any assets under execution and/or advisory approach

04.5. Additional information. [Optional]

100% of activities are related to AIF management

OO 06. How would you like to disclose your asset class mix

06.1. Select how you would like to disclose your asset class mix.

as percentage breakdown

	Internally managed (%)	Externally managed (%)
Listed equity	0 0	0 0
Fixed income	0 0	0 0
Private equity	>50% 62.86	0 0
Property	0 0	0 0
Infrastructure	10-50% 37.14	0 0
Commodities	0 0	0 0
Hedge funds	0 0	0 0
Fund of hedge funds	0 0	0 0
Forestry	0 0	0 0
Farmland	0 0	0 0
Inclusive finance	0 0	0 0
Cash	0 0	0 0
Money market instruments	0 0	0 0
Other (1), specify	0 0	0 0
Other (2), specify	0 0	0 0

as broad ranges

06.2. Publish asset class mix as per attached image [Optional].

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

Yes

06.5. Indicate whether your organisation uses fiduciary managers.

Yes, we use a fiduciary manager and our response to OO 5.1 is reflective of their management of our assets.

No, we do not use fiduciary managers.

06.6. Provide contextual information on your AUM asset class split. [Optional]

BaltCap has three strategies: buy-out, growth capital and infrastructure. Buy-out and growth funds fall under private equity AUM calculation while infrastructure fund assets fall under infrastructure AUM.

OO 07. Fixed income AUM breakdown (Not Applicable)

OO 08. Segregated mandates or pooled funds (Not Applicable)

OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

0 Developed Markets

0 Emerging Markets

100 Frontier Markets

0 Other Markets

Total 100% 100%

09.2. Additional information. [Optional]

We very strongly disagree with the classification of Estonia, Latvia and Lithuania as frontier markets. We understand that you are using MSCI classification, but think this index treats Baltic countries very unfairly. The three countries are members of the OECD and rank high in global business indices. We suggest you consider revising the cathegorisation of countries you are using.

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