Currently, investments in bonds and private debt offer a relatively high annual return, potentially reaching 10 percent or more, attracting significant interest among investors. In response to investor inquiries, the investment fund “Capitalica Debt Fund,” managed by Capitalica Asset Management, is now accepting investments starting from 25,000 euros. According to fund representatives, this decision will make it easier for investors to deploy their funds in the capital market.
“The asset class of investments in bonds and private debt remains attractive to investors. The relative stability of value and the ability to generate periodic income complements other asset classes well. We established the debt fund earlier this year, seeing an unmet need from companies in our region for financing their business activities, as well as a strong appetite among investors for this investment category. Until now, the minimum investment amount in the fund was 125,000 euros. We have received investments from both individuals and companies. However, we noticed an additional need – the desire of investors to invest smaller amounts in the fund. We decided to meet this demand and have lowered the minimum threshold to 25,000 euros,” explains Ignas Šablevičius, manager of the “Capitalica Debt Fund” at SBA Group’s investment management company Capitalica Asset Management.
According to him, this decision will be most beneficial for clients who are either beginning their journey as investors or already have experience in this field but, due to their chosen strategy or other reasons, are unable to commit to the previously set minimum of 125,000 euros for a single investment.
However, I. Šablevičius adds that this opportunity is temporary. According to the current decision by the fund’s management company, the exception will be valid until the spring of 2025. It’s also important to note that each investor will need to undergo an additional assessment to determine if the investment is suitable for them.
Future Goals and Market Dynamics
Those who invest in bonds and private debt typically seek stable returns and lower risk of investment value fluctuations, says I. Šablevičius. Nevertheless, the fund manager emphasizes the importance of a professional investment selection process to manage risks effectively:
“It’s essential to consider the investor’s lending strategy and risk appetite. This process should also involve a financial and non-financial audit of the target investment and discussions with the company’s management. The “Capitalica Debt Fund” team allocates the fund’s investments across various industries, sectors, and regions, further reducing the risk of each individual investment and aiming for stable returns,” says I. Šablevičius.
Managed by Capitalica Asset Management, the “Capitalica Debt Fund” aims to create a large, diversified, and efficiently managed investment portfolio, independent of any single sector or country, and to periodically share generated returns with investors. The fund’s objective is to achieve an annual return of up to 10% for investors and periodic income distribution of up to 5%.
The fund’s investments are primarily directed toward bonds of small and medium-sized enterprises in the Baltic States and Poland.
