Livonia reaps 2x on exit of legacy asset Archyvų Sistemos

The company was one of four assets held in a legacy portfolio managed by Livonia, built before the firm raised its first institutional fund, Livonia founding partner  Mindaugas Utkevičius told unquote". Utkevičius and Livonia co-founder Rain Lõhmus had raised around €15m of private capital in 2005-2006 for Baltic SME investments, as a means of building a track record to leverage in the ultimate goal of raising an institutional fund.

Utkevičius said Livonia had been approached by multiple prospective buyers for AS in the years leading up to the exit, as the GP's investment had matured, but had not run an active process to unload the company at any point.

Utkevičius says part of the proceeds from the investment – which brought in around 2x its initial investment – will be returned to the GP's Livonia Partners Fund I, as part of an agreement with the fund's LPs. The Baltic-dedicated vehicle is targeting €70m and expected to hold a final close later in 2016.

The exit of AS leaves one active legacy asset in Livonia's portfolio, according to Utkevičius: an Estonian occupational healthcare clinic. The legacy portfolio had consisted of a total of four assets, including a 30MW wind park and a Baltic ticketing business. Utkevičius says the theme of the investments – with the exception of the wind park – had been B2B services, focusing on smaller niches in which the investors could operate because of the relatively limited amount of capital available to them.

Livonia recently completed the first acquisition from its institutional fund in February: Estonian sauna and thermal wood products manufacturer Ha Serv.

Company
Founded in 2001, AS is an outsourced document storage and archiving company in the Baltic region.

Vilnius-headquartered AS also offers records destruction, digital archiving, scanning and further supplemental archiving-related services.

The company has around 20,000 cubic meters of physical records stored currently, across secure facilities in all three Baltic countries.

Employing a staff of 124, AS generated revenues of €3m in its most recent financial year, with EBITDA in excess of €1.2m.

People
Livonia Partners – Mindaugas Utkevičius (partner, co-founder).

Advisers
Equity – PwC (tax).

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