Published: January 11, 2013
Eastern Europe-focused asset manager sells stake in Latvian IT company.
East Capital, an asset manager specialising in Eastern Europe, has sold its stake in ELKO Grupa, a Latvian IT company operating across the region.
East Capital took an 8.8% stake in the Latvian business in 2005 via three of its funds: East Capital Bering New Europe Fund, East Capital Bering Russia Fund, and East Capital Bering Ukraine Fund.
Its exit gives East Capital a return of 107%; the firm notes that during the same period the Baltic benchmark index remained flat. Furthermore, it exited ELKO at a valuation 36% higher than the value at which its funds held the investment on their books.