For the Baltic private equity (PE) and venture capital (VC), the year 2025 marked a strong rebound in fundraising, with Baltic fund managers raising €749 million, more than double the 2024 total. The activity was driven primarily by private equity fund managers, who raised a record €502 million, surpassing the total raised over the previous three years combined, while venture capital fund managers raised €247 million. Since 2010, Baltic PE and VC fund managers have raised €4.6 billion, and the number of active funds has reached a record of 116, according to the report Baltic Private Equity and Venture Capital Market Overview 2025, prepared by the M&A team of KPMG Baltics in cooperation with the Estonian, Latvian and Lithuanian venture capital associations.
About 70% of investments went outside the Baltics
“According to the report, Baltic fund managers have a growing global reach. In 2025, total outbound investments reached €336 million, another record-breaking year for Baltic fund managers, as these made up 70% of the total €480 million invested during the year,” said Dmitri Ševoldajev, Head of M&A at KPMG Baltics.
Since 2020, Baltic VC funds have made outbound investments totaling €742 million. Plural has invested the largest amount of capital outside of the Baltics, with €484 million (65% of the total) deployed by the end of 2025.
In 2025, Baltic funds invested €75 million into Estonian companies across 102 transactions, the highest activity among the Baltic states and a 70% year-on-year increase in value. The investments into Lithuania companies by Baltic funds amounted to €52 million, while the respective figure for Latvia was €11 million.
Investment activity to remain buoyant
By the end of 2025, Baltic PE/VC funds held about €1.4 billion in dry powder, with fund managers estimating that in the coming years approximately €671 million of this will be deployed in the Baltics and over €600 million to be invested internationally. This demonstrates both strong support for local companies and the growing global ambition of Baltic fund managers.
“Looking ahead, fund managers remain cautious on fundraising prospects in 2026, particularly with respect to attracting foreign limited partners. However, sentiment around investment opportunities is improving, with 60% of respondents expecting stronger deal flow. With substantial capital available and a growing international presence, the Baltic PE/VC sector enters 2026 increasingly mature and resilient,” Ševoldajev commented.
