UPDATE NO. 13
APRIL 2025
Greetings from Merito Partners
We’ve reached a key milestone: over EUR 100 million now trusted to Merito Partners by more than 170 private and institutional investors. In just 2.5 years, this trust has been built by offering a fresh and flexible approach to private equity in the Baltics — through 15+ tailored investment opportunities with strong returns and controlled risk. From funds and HoldCo to high-yield bonds, our investors value the range and quality of opportunities we deliver. Thank you to our investors and partners for trusting our vision. This milestone is just the beginning. There are many more ideas and projects in the pipeline that will be shared with you soon.
Mikus Janvars
Managing Partner & Co-Founder of Merito Partners
Should you be interested in joining our ever-growing investor base, don’t hesitate to reach out to investor.relations@meritopartners.com.
Succesion-Driven Opportunities:
Unlocking the Next Wave of Investments in the Baltics
The Baltics are entering a new phase of succession-driven deals. With many first-generation entrepreneurs approaching retirement, ownership transitions are accelerating. At the same time, geopolitical shifts have led some international investors to exit, creating unprecedented opportunities for local capital. At Merito, we are capitalizing on this trend. We identify high-potential businesses at key transition points and open the door for our investors to participate early. We scout the market for the next wave of succession-driven opportunities. We are eager to share two fresh investment cases where more than 40 investors have already committed over EUR 20M.
Baltic Family Capital (BFC)
Inspired by over 100 successful consolidators in Scandinavia (e.g., Visma, Indutrade, Lifco), BFC is the first permanent equity house designed for Baltic SME founders seeking a credible exit route. Using a buy-and-build strategy, BFC aims to create a EUR 100M revenue group by 2030, built from 2 to 4 platform companies and many decentralized businesses.
BFC targets resilient companies with high, stable margins, offering mission-critical products or services and serving diverse customer bases. Preferred sectors include business services, niche manufacturing, and value-add distribution, with EBITDA between EUR 500K and EUR 5M.
BFC is led by Alex Prokofjevs — a true Baltic citizen (born in Lithuania, raised in Latvia, married to an Estonian) — and a dedicated team already actively mapping the market. Company plans to list within the next 5 years, opening new growth and liquidity opportunities for the investors.
Lignord Group
Lignord Group is the first Baltic consolidator focused on mid-sized sawmills — a core sector of the region’s traditional, export-driven wood processing industry.
These businesses are often facing succession challenges, with founders nearing retirement age (average 60+), low investment appetite, outdated sales models, and a lack of digital adaptation and long-term strategy. At the same time, they offer robust access to raw materials, strong long-term client relations and high-quality asset base. Moreover, the market is deep with tens of companies fitting the description in Latvia alone.
By consolidating 5–8 regional players, Lignord Group aims to create a strong group with professional management, focused on proactive sales, process digitalization, strategic financial planning, and unlocking synergies.
Within 5 years, Lignord Group targets to become a stock exchange candidate, offering retail investors a chance to co-own a player in one of the Baltics’ most sustainable industries.
We continue to seek similar succession-driven investment opportunities and are excited about the value these trends can unlock for our investors. We believe this is the momentum!
Latvia`s Solar PV Champion:
Focus on operations and portfolio resilience
As many already know, this is one of our earliest projects. It is now fully developed, with 86 investors contributing EUR 20M in equity. Together with the bank financing, a total of EUR 44M was invested to develop 8 solar PV parks with a total capacity of 71.6 MW.
The project was completed in Q3 2024 and is now fully operational. In 2024, consolidated PV plant revenue exceeded EUR 2.2M and EBITDA was EUR 1.8M, in line with the budget given that some of the plants were commissioned during the year.
Given the strong performance and in line with initial plans, we started exploring the sale of the portfolio in the second half of 2024. While we received interest, negotiations have been slow—mainly due to geopolitical tensions, high interest rates, and uncertainty around the PPA market in the Baltics. The current conditions do not support a sale that would meet our investors’ expectations.
Meanwhile, a major shift has occurred in the market: the disconnection from the BRELL network has added uncertainty to the energy landscape but has also improved revenue projections for producers with existing capacity, including Merito and Saules Energy. The new situation has opened up an opportunity to increase long-term revenue potential and resilience of the portfolio by adding battery capacity. We are currently in discussions
Leading Self-Storage Operator in the Baltics:
BOX Storage Scaling
In 2023, Merito launched Merito Self Storage Fund with a clear mission — to build the leading self-storage operator in the Baltics. Just a year later, BOX Storage project has achieved impressive milestones and is building strong market momentum.
The timing could not be better. In the Baltics, self-storage space per capita is around three times lower than the European average and more than five times lower than in the Nordics. Meanwhile, across Europe, the self-storage sector has shown consistent growth: rentable space has increased at a compounded annual growth rate of over 8% since 2015, with the number of facilities growing by 13%. Importantly, the sector is resilient — even through the market growth the occupancy rates have remained above 78% over the last eight years, showing strong and increasing demand.
BOX Storage is positioned right at the center of this opportunity. By early June, we anticipate the opening of our flagship Go Planet location in Riga — offering over 4,000 m² of self-storage space. At the same time, we are finalizing our first locations in Vilnius and Tallinn. By then, BOX Storage’s operational network will cover six prime locations across the Baltics, offering over 12,000 m2 of leasable self-storage space across the Baltics.
But this is just the beginning. By the end of the year, we plan to add up to four more locations, expanding our footprint to approximately 30,000 m² of rentable space. This will complete the establishment phase and mark the start of a new stage — active marketing and client acquisition.
Our growth strategy combines the transformation of underused spaces with targeted M&A deals. The Baltic self-storage market remains significantly underserved, and we see a clear path toward consolidation, value creation, and eventual exit, whether through a strategic sale or a potential listing.
What makes us confident about this project?
- Low-risk profile: The real estate we acquire typically holds market value exceeding acquisition cost, providing strong downside protection.
- Experienced team: Our management team brings proven experience in scaling operations and delivering results.
- Multiple growth levers: We are growing organically by converting spaces and through smart acquisitions.
- Attractive industry dynamics: Self-storage valuations are compelling, supported by strong demand, stable cash flows, and multiple exit scenarios.
- Future-ready model: We are committed to sustainable principles and leverage tech-driven solutions for efficiency and better customer experience.
Investors still have a window to join the BOX Storage journey as we continue raising investments through the summer. With clear market leadership within reach and a platform built for long-term value creation, BOX Storage is set to become the undisputed self-storage champion of the Baltics.
Welcome to Go Planet BOX Storage opening
Save the Date – May 27
We’re excited to invite you to the kickoff event for our Merito Self-Storage Fund flagship location – Go Planet, at Gunāra Astras Street 2B, Rīga. This will be the largest and most advanced self-storage facility in the region, setting a new standard for the market. We’d be glad to have you join us for this milestone celebration.
First Liquidity Event Confirmed:
Adaptive Media Sets the Stage for Target Fund II Investors
2025 is shaping up to be a milestone year for Target Fund II investors. We are pleased to announce the first liquidity event from our investment in Adaptive Media, marking a major achievement for the Fund.
In 2024, Target Fund II raised EUR 4.3M in capital and acquired a 74% stake in Adaptive Media SIA.
Adaptive Media’s strong financial performance drives this momentum. The company closed 2024 with a consolidated net profit of EUR 1.26M — a 26% increase compared to 2023. Growth was fueled by a significant expansion of gross profit in key markets, including France, Spain, Romania, Brazil, and Mexico, with most of these markets more than doubling their gross profit year-over-year.
These results validate our investment approach: acquiring businesses with solid fundamentals, enhancing operational efficiency, and accelerating international growth.
Importantly, the first regular dividends for all shareholders are expected to be paid already in Q2 2025 — a major step towards delivering early and consistent liquidity to our investors.
Special Real Estate Investments:
Finalizing Restructurings and Exploring Exit Opportunities
We continue working dynamically across our real estate projects, pushing through restructurings, optimizing operations, and carefully reviewing different exit scenarios to unlock value for our investors.
Kaleju Street 18/20 – Riga Old Town
At our residential property on Kaleju Street, the focus is on completing renovation and furnishing works ahead of the summer high season. Four rental units are currently under construction, and the last long-term tenants are preparing to vacate soon.
Our goal is clear: maximize the building’s rental potential and optimize running costs during the most active rental period. In parallel, we have initiated exit discussions (building sale) and are carefully reviewing all available options to ensure the best outcome.
Pasta Street 6 – Riga Old Town
At our second residential project on Pasta Street, commissioning is in its final stages. We are preparing to launch 86 fully furnished, ready-to-rent units into the high-season short-term rental market.
Once operations are fully underway, we will start evaluating and processing different exit opportunities. The strategy is to capture the strong market momentum and deliver a well-timed exit once the building’s revenue potential is fully demonstrated.
Ulmaņa Gatve 2 – Riga Industrial Asset
At our industrial property on Ulmaņa Gatve, work continues to optimize cash flow and strengthen the tenant mix. We are actively renewing agreements with existing tenants and onboarding new ones to improve cash flow stability.
In parallel, we are preparing several development and renovation scenarios, including sketches, cost estimates, and potential project roadmaps. The upcoming quarter will be focused on selecting the optimal value-creation path and preparing the building for its next development stage.
Across all properties, the main objective remains the same: move fast, drive operational improvements, and explore the best exit scenarios to deliver strong results for our investors.
We are actively working to prepare new real estate investment opportunities for our investors.