Fund ZGI-4 has signed an agreement to invest EUR 3 million in Estonian company Corle OÜ
ZGI Capital is one of
the most experienced risk capital fund managers in the Baltics and has been
operating since 2005. Currently, ZGI Capital manages the fourth-generation
venture capital fund ZGI-4, whose largest investor is ALTUM.
The core business of
Corle OÜ is the design, construction and maintenance of electrical and internet
optical cable engineering systems. The company's turnover in 2018 reached EUR
7.1 million (27% increase over the
previous year) and is projected to be more than doubled over the next few
years. The company's home market is Estonia and Finland, and the first pilot
project has been completed in Sweden. Currently negotiations have started to
launch first project also in Germany.
The company is not a typical
development story, as only recently at the end of 2017, current owner and CEO,
Priit Uuemaa, who previously gained a high level management experience in one
of Estonia's largest companies, Graanul Invest AS, saw potential, and acquired
Corle OÜ using mezzanine debt (leveraged buyout).
Priit Uuemaa comments:
"The company does not want to stop
at current achievements and plans to expand further in the Baltics and
Scandinavia, and ZGI investments are an important step towards achieving these
goals".
Edgars Cimermanis,
Investment Director of ZGI Capital: "The
strategy of the fourth generation fund" ZGI-4 "managed by ZGI Capital
provides an opportunity to diversify the fund's operations by investing in
prospective companies also from other European Union countries outside of
Latvia. We highly value Corle managements experience, qualifications and
achievements shown during the previous year very successfully working in an
engineering-solution-intensive industry with extensive development capabilities.
The company has ambitions to continue expanding its business by expanding
operations internationally, including in Latvia. We are pleased that, with this
investment, we also have opportunity to
take part in the company's growth story.”
The capital raising
process was led by Auctus Capital. Auctus Capital partner Ēriks Reņģītis
comments: “Auctus Capital specializes in
capital raising for fast-growing companies, where traditional financing source are not enough.
Considering that ZGI is backing ambitious companies with high growth potential
also outside of Latvia, we believe that the fund is the right partner for Corle
OÜ management goals”.
Juris Vaskāns, Member
of the Board of ALTUM: “The Growth Risk
Capital Fund ZGI-4 provides an opportunity for companies that need investment
for further growth but who do not qualify for traditional commercial banking
products. A quarter of the fund's investments are made in European Union
companies outside Latvia, and one such perspective investment is made in Corle
OÜ.”