COBALT advised BaltCap Growth Fund (BGF) on investing close to €3 million of growth capital in Viru Haigla AS to expand the Pihlakodu chain of modern elderly care homes and to eventually increase the number of beds to one thousand. This is the first investment of BGF in Estonia. As a result of the transaction, BaltCap will acquire a minority shareholding in Viru Haigla AS.
BaltCap established BGF in cooperation with the Baltic Innovation Fund (BIF) to invest in rapidly growing sector leaders. BIF is a fund-of-fund created by the Estonian, Latvian, and Lithuanian governments and the European Investment Fund (EIF) to boost equity investments into Baltic companies.
Pihlakodu is the leading chain of modern elderly care homes in Estonia, providing social care services in Tapa, Kohtla-Järve and since last year also in the Nõmme district of Tallinn. After completing the Tabasalu elderly care home in September 2019, the Pihlakodu chain can offer close to 500 nursing home places for the elderly.
Our work comprised advising the client on all aspects pertaining to drafting and negotiating the investment documents. The client was advised by partner Peeter Kutman, senior associate Karl Kull and assistant lawyer Tiit-Gregor Mets.