Livonia reaps 10x selling Qvalitas from legacy portfolio

The pan-Baltic private equity firm Livonia Partners sold its minority stake in Estonia’s biggest occupational healthcare provider Qvalitas Arstikeskus – the last remaining asset in Livonia’s legacy portfolio.

“We are very pleased with what we achieved with developing and exiting Qvalitas.” said Mindaugas Utkevičius, a founding partner at Livonia Partners. “Our legacy private equity investment vehicle helped us establish a strong track record and build a strong team for a fully institutional private equity fund.”

Utkevičius and another Livonia Partners co-founder Rain Lõhmus started investing €15 million in private equity capital in 2005, mainly focused on business service companies across the Baltics. In 2009 they seized an opportunity to buy the then-in-distress occupational healthcare company in Estonia, Karell Arstikeskus, and after a merger and one add-on acquisition,  helped build today’s Qvalitas – the undisputed leader in its industry.

“We started working with Mindaugas in 2009 and much enjoyed the years of successful cooperation. I appreciate everything he and his team were able to contribute towards the development of company,” said Tõnu Velt, CEO and majority shareholder of Qvalitas.

“While the Qvalitas investment was small relative to other investments from the vehicle, it produced an IRR of 44% and a multiple on invested capital of more than 10x.” Utkevičius shared. The value of the Qvalitas sale is not public.

The Livonia Partners Fund I held a €70-million first close in August 2015. The fund has a strategy of investing in medium-size companies in the Baltics, with a focus on business services, manufacturing, TMT, healthcare and other sectors. Livonia made its first investment in February 2016, taking a majority stake in the Estonian sauna and thermo-treated wood products manufacturer Ha Serv.

For further information please contact:

Mindaugas Utkevičius, Livonia Partners, +370 620 71777

Livonia Partners is a private equity investment firm based in the Baltics currently managing €70 million as part of Livonia Partners Fund I. Founded and run by Mindaugas Utkevičius, Kristine Berzina, Rain Lõhmus, and Kaido Veske, the fund’s investors are domestic and international institutional investors. Livonia was partly initiated via the Baltic Innovation Fund (BIF), a joint initiative of Estonia, Latvia and Lithuania to strengthen access to capital for Baltic companies, and the European Investment Fund.

Qvalitas Arstikeskus AS provides occupational healthcare services to companies in Estonia, including assessments for high-risk professionals such as pilots. With over 100 employees at eight locations and mobile units throughout the country, Tallinn-based Qvalitas performed 60,000 health checks in 2015.

Share this