Key Takeaways
- • Baltic PE and VC fund managers raised €749 million in 2025, more than double the 2024 total, representing a 126% year-on-year increase and marking a strong rebound in regional fundraising activity.
- • Private equity fund managers dominated fundraising with a record €502 million raised in 2025—exceeding the combined total of the previous three years—while venture capital managers raised €247 million.
- • Baltic fund managers deployed €480 million in total investments during 2025, with outbound investments reaching a record €336 million (70% of total deployed capital), demonstrating expanding global reach and investment scope.
- • The region now has 116 active PE/VC funds with cumulative capital raised since 2010 exceeding €4.6 billion, and funds are holding approximately €1.4 billion in dry powder for future deployment.
- • Estonia led intra-Baltic investment activity with €75 million deployed across 102 transactions (a 70% year-on-year increase), followed by Lithuania at €52 million and Latvia at €11 million; Plural has emerged as the largest Baltic fund manager by outbound capital, deploying €484 million globally (65% of total outbound investment since 2020).
Summary
Baltic private equity and venture capital markets experienced substantial momentum in 2025, with fundraising activity more than doubling compared to 2024. According to the Baltic Private Equity and Venture Capital Market Overview 2025, prepared by KPMG Baltics in cooperation with regional venture capital associations, fund managers across Estonia, Latvia, and Lithuania raised €749 million during the year. This performance represents a decisive turnaround after a more subdued 2024, with the 126% increase underscoring renewed investor confidence in the region's alternative asset management landscape.
Private equity fund managers were the primary growth driver, raising a record €502 million in 2025—a significant achievement that surpassed the combined fundraising totals of the preceding three years. Venture capital managers contributed €247 million to the total, indicating a balanced but PE-dominated capital raising environment. Since 2010, Baltic fund managers have cumulatively raised €4.6 billion, with the number of active funds reaching a record 116 entities, reflecting institutional maturation and diversification across the three countries.
Investment activity totaled €480 million in 2025, with Baltic fund managers demonstrating increasingly global investment orientation. Outbound investments reached €336 million, representing 70% of total deployed capital and marking another record for cross-border deployment by regional managers. Since 2020, Baltic VC funds have collectively invested €742 million outside the region, with Plural emerging as the dominant player, deploying €484 million globally (65% of the outbound total) through the end of 2025. This expanded geographic reach reflects the maturation and institutional capability of Baltic-based fund managers.
Domestically, Estonia dominated intra-Baltic investment, with funds deploying €75 million across 102 transactions—the highest activity level among the three countries and a 70% year-on-year increase in capital deployed. Lithuania received €52 million in Baltic fund investments, while Latvia attracted €11 million. According to Dmitri Ševoldajev, Head of M&A at KPMG Baltics, these metrics underscore the region's "growing global reach" while maintaining significant domestic deployment capabilities. As of year-end 2025, Baltic PE/VC funds held approximately €1.4 billion in dry powder, providing substantial dry powder for deal activity in 2026 and beyond.
Private equity fund managers were the primary growth driver, raising a record €502 million in 2025—a significant achievement that surpassed the combined fundraising totals of the preceding three years. Venture capital managers contributed €247 million to the total, indicating a balanced but PE-dominated capital raising environment. Since 2010, Baltic fund managers have cumulatively raised €4.6 billion, with the number of active funds reaching a record 116 entities, reflecting institutional maturation and diversification across the three countries.
Investment activity totaled €480 million in 2025, with Baltic fund managers demonstrating increasingly global investment orientation. Outbound investments reached €336 million, representing 70% of total deployed capital and marking another record for cross-border deployment by regional managers. Since 2020, Baltic VC funds have collectively invested €742 million outside the region, with Plural emerging as the dominant player, deploying €484 million globally (65% of the outbound total) through the end of 2025. This expanded geographic reach reflects the maturation and institutional capability of Baltic-based fund managers.
Domestically, Estonia dominated intra-Baltic investment, with funds deploying €75 million across 102 transactions—the highest activity level among the three countries and a 70% year-on-year increase in capital deployed. Lithuania received €52 million in Baltic fund investments, while Latvia attracted €11 million. According to Dmitri Ševoldajev, Head of M&A at KPMG Baltics, these metrics underscore the region's "growing global reach" while maintaining significant domestic deployment capabilities. As of year-end 2025, Baltic PE/VC funds held approximately €1.4 billion in dry powder, providing substantial dry powder for deal activity in 2026 and beyond.
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