The private debt fund Nucapital extended until 2029 – 77% of investors remain in the fund

The private debt fund Nucapital, managed by 1 Asset Management, has been extended for an additional four years. The new fund rules came into effect on September 1, and the fund will now operate until September 1, 2029, with the option to extend for a further two years until September 1, 2031.

Nucapital is a closed-end fund intended for informed investors, meaning participation is limited to a select group of investors. However, subject to eligibility and availability, investments can be made throughout the fund’s lifetime.

The fund was established in 2019 and over seven years has become one of the most active players in the private debt market. The updated fund rules provide greater flexibility in project financing, allowing for a broader range of investments than before. Another key development is the introduction of two investment classes, enabling investors to tailor their investment approach: one offers periodic distributions, while the other allows for reinvestment of generated returns.

The success of the extension is best reflected in investor decisions: as much as 77% of fund units were rolled over by existing investors, representing a very high level of confidence. Fund partner Ernestas Juozapaitis emphasized that this decision demonstrates long-term trust in the fund’s strategy and management quality: “Investor loyalty is the best recognition of our work. It shows that they value the results we have delivered and trust the direction we have taken. This decision confirms that the private debt market in Lithuania is strengthening and has significant potential.”

New investors who joined the fund during the extension have further strengthened its stability and growth prospects. The investment portfolio continues to generate consistent results, providing a solid foundation for further development. The fund remains committed to its strategy, focusing on reliable investments, most of which are secured by real estate collateral.

In recent years, private debt funds have become an increasingly important alternative investment option both globally and in Lithuania. This asset class enables investors to diversify their portfolios and reduce reliance on equity and bond markets, while also providing opportunities to participate in financing business projects. While such investments do not eliminate risk, they allow for effective risk diversification.

Globally, private debt returns have remained attractive in recent years, although they vary by region. In Lithuania, investors typically expect annual returns of around 8–12%, and such levels have largely been sustained over the past several years.

For companies, private debt funds offer greater flexibility compared to traditional banks: decisions are made faster, non-standard financing structures can be arranged, and terms can be tailored to the specific needs of each project. This is particularly relevant for businesses seeking capital for growth or new projects but facing stricter bank requirements or longer approval processes.

1 Asset Management is a Bank of Lithuania-licensed investment management company providing services to institutional and private investors. The company manages more than €400M in assets and serves over 400 investors. It focuses on niche asset classes and value creation strategies, investing not only in private debt but also in modern student housing, hotels near international airports, forests, veterinary clinics, education infrastructure, and large-cap companies listed on U.S. stock exchanges.