INVL Asset Management, a subsidiary of Invalda INVL, launches its second alternative investment fund for retail investors

INVL Asset Management, a company of the INVL Investment Management and Life Insurance Group, has launched its second alternative investment fund for non-professional investors, with investments starting from EUR 5,000.

INVL Alternative Investment Fund II gives retail investors access to private alternative asset classes by investing in private companies, corporate private debt instruments and real assets such as land, forests and infrastructure.  The Fund will aim for an average annual return of at least 8%.

"The success of the INVL Alternative Investment Fund I, which we launched last year, has shown that there is a strong demand in Lithuania for such funds, where nonprofessional investors can grow their wealth. Last year such a fund attracted more than 560 investors and over EUR 5 million. 

Alternative investments are carried out in private rather than public markets and are more complex and less regulated. They are relatively high-risk but can provide stability when public markets fluctuate. For example, one of the alternative asset classes – real assets – has the ability of retaining their value during periods of high inflation. Investments in alternative assets are being chosen by an increasing number of professional investors both globally and in Lithuania because of the opportunity to diversify their portfolios.

However, most funds investing in alternative assets are usually only available to large institutional investors or informed investors who can spend up to EUR 125 000. INVL Alternative Investment Fund II opens this opportunity to everyone again", – says Vaidotas Rūkas, Head of Investment Management at INVL Investment Management and Life Insurance Group.

Public opinion polls also show that more people are discovering investment funds. According to the survey on the investment, saving and retirement habits of the population conducted by Spinter for INVL in April last year, one in four (25%) of the population said that they invest. Of these, 17% choose investment funds, which is higher than the share of respondents who consider real estate or rental housing as an investment. Moreover, the number of people who invest is growing consistently year on year.

Aims to attract  EUR 5 million

"INVL Alternative Investment Fund II launches on 2 May. It is expected to attract between EUR 5 million and EUR 8 million of investment. The fund units are planned to be distributed within 7 months, by 30 November, but the distribution will be suspended if the EUR 8 million is raised before then. Alternatively, the Fund may organise a second distribution round at a later date, but in any case, the value of the funds raised will not exceed EUR 8 million.