Total assets managed by the Baltic real estate fund manager EfTEN exceeds €1bn
By the start of 2022, the volume of assets managed by the fund management company EfTEN Capital broke the threshold of one billion euros. In total, EfTEN manages seven funds that invest in Baltic real estate.
“After mandatory pension fund management companies, EfTEN is the largest fund management company in the Baltics when measured by the size of assets under management. There is nothing confidential about EfTEN’s success. As a manager of funds, we have always put investors’ business interests ahead of an asset manager’s business interests, and so far, we have succeeded in remaining a step ahead of our closest competitors. We hope that this success story will continue, and we are making an effort for this to happen,” said Viljar Arakas, CEO of EfTEN Capital.
EfTEN was established in the spring of 2008 by six investors – Arti Arakas, Olav Miil, Peeter Mänd, Jaan Pillesaar, Olari Taal, and Hannes Tamjärv – who all promised to invest 50 million Estonian kroons (approximately 3.2 million euros at the time) per investor in a new real estate fund. A year later, Vello Kunman joined the partnership.
In 2010, LHV pension funds, managed by Andres Viisemann, became the first institutional investors to invest in an EfTEN fund. LHV’s pension funds are still the largest investors at EfTEN Kinnisvarafond AS.
In addition to the seven founding investors mentioned above, EfTEN Capital’s current partners include four founding partners who work for EfTEN on a daily basis – Marilin Hein, CFO; Maie Talts, lawyer; Tõnu Uustalu, investment manager; and Viljar Arakas, CEO. In 2013, a joint asset management company was established with Viktors Savins, Latvia’s country manager and EfTEN’s Latvian business partner. Another management company was established in Lithuania two years later with Laurynas Žilys, Lithuania’s current country manager and EfTEN’s Lithuanian business partner.
In 2017, EfTEN Real Estate Fund III AS, which was established two years earlier, entered the main list of the NASDAQ Tallinn Stock Exchange. Its share price has been growing year by year. In 2018, two internationally renowned institutions – the Vienna Insurance Group and the EBRD – invested in EfTEN’s fourth fund. Last year, the fund management company established a unique EfTEN United Property Fund, which aims to become somewhat of a Baltic real estate market index.
EfTEN Capital Group (EfTEN Capital AS and its subsidiaries) operates 58 commercial buildings with close to 1,300 tenants.