On operating results
In 2021 Capitalia reported turnover of EUR 1.19 million and profit of EUR 174 thousand. The Company reported a very strong financial results in the last quarter of the year because of very high interest in business financing. In addition, as an important milestone, Capitalia raised another alternative investment fund in this period, a feeder fund for Change Ventures. Although our funds are not expected to provide significant revenue contribution in the near term, they mark an important strategic step in the direction of asset management and are expected to open new business opportunities in the future. 

On key events
In the last quarter of the year Capitalia issued new financing in the amount of EUR 5.91 million (EUR 3.86 million in the previous quarter). Among the financed businesses during this period were, for example, such companies as Aerones Engineering (industrial drone manufacturing), Prosport (sporting goods retail), RCG Lighthouse (industrial lighting solutions) and Visual Media Group (digital outdoor advertising). Altogether, interest in the business loans has been very strong and is expected to continue such. 

With regards to corporate finance activities, we have finished the transaction advisory project on the sale of an IT distribution company TVG Baltic to a strategic investor from the USA. At the same time, we have been engaged in two new business sale projects. In the alternative fund management, we have completed three venture capital investments – Inzmo (Estonia), Aerones Engineering (Latvia) and Cenos Platform (Latvia). The pipeline for new investment opportunities is very strong and we are actively continuing our fundraising and seeking new investors. Lastly, we have raised a feeder fund for investment in the second fund managed by Change Ventures. 

On plans for the next quarter
We believe that over the first quarter of 2022 the business financing activity will be relatively calm as typically characteristic to this season. We will focus on building the operating and administrative capacity to continue growing our loan and equity investment portfolio in the remainder of the year. Capitalia expects to complete the process for acquiring brokerage license in the first quarter of 2022 as well.