The 1 Asset Management private debt fund NuCapital has been prolonged for another four years. The new fund rules came into effect on September 1, and the fund will operate until September 1, 2029, with the option to extend for another two years, until September 1, 2031.

NuCapital is a closed-end fund intended for informed investors, so it includes only a limited number of participants. However, those who meet the criteria can invest at any time during the fund’s operation, as long as places are available.

The fund was launched in 2019 and over seven years has established itself as one of the most active players in the private debt market. The updated rules give more flexibility to finance a broader range of projects than before. Another innovation is the introduction of two investment classes, allowing investors to tailor their participation to individual needs: one provides for periodic payouts, while the other reinvests earned profits.

The success of the extension is best illustrated by investors’ decisions: as much as 77% of the fund’s units were extended by existing investors, an exceptionally high level of trust. Fund partner Ernestas Juozapaitis emphasizes that this shows long-term confidence in the fund’s strategy and management quality: “Investor loyalty is the best recognition of our work. It means they value the results achieved and trust our chosen direction. This decision confirms that the private debt market in Lithuania is strengthening and has significant potential.”

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

In recent years, private debt funds have become an important alternative investment avenue both globally and in Lithuania. This investment form allows investors to diversify their portfolios, reduce dependence on equity or bond markets, and participate in financing business projects. While such funds do not offer complete risk protection, they allow for risk diversification.

In global markets, private debt investment returns remain attractive, although they vary by region. In Lithuania, investors typically expect around 8–12% annual returns, results that have been largely maintained for several years.

For companies, private debt funds offer more flexibility than traditional banks: decisions are made faster, non-standard financing structures can be proposed, and conditions can be adapted to specific project needs. This is particularly relevant for businesses seeking capital for expansion or new projects but facing stricter bank requirements or longer approval processes.

1 Asset Management is an investment management company licensed by the Bank of Lithuania, providing services to institutional and private investors. The company manages assets worth more than EUR 400 million 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, educational infrastructure, and large-cap companies on US stock exchanges.