ALTUM

ALTUM predominantly draws funding from European Union structural and cohesion funds, allocated through Latvia's national budget. The institution blends grants, loans, and guarantees with its EU-backed balance sheet. During the 2014–2020 period, it absorbed roughly €1.5 billion in such programming, and it continues to channel NextGenerationEU and 2021–2027 cohesion funds into domestic enterprises.

It functions as a fund-of-funds limited partner through its ALTUM Capital subsidiary. Commitments target early-stage Baltic-focused managers. ALTUM co-anchors cross-border vehicles like the Baltic Innovation Fund II alongside sister institutions in Lithuania and Estonia. Direct startup equity investment is rare; the preferred route is backing VC general partners with a Baltic mandate.

The Board, chaired by Jānis Rozenblats, sets strategic allocation. Day-to-day investment committees operate at the subsidiary level—ALTUM Capital for venture fund commitments, and separate credit committees for the direct-lending and guarantee books. Board composition includes representatives from Latvia's Ministry of Economics and Ministry of Finance, reflecting the state-ownership structure.

ALTUM's governing regulation excludes speculative real-estate development that lacks an energy-efficiency component. Pure-play arms manufacturing and gambling enterprises are ineligible for financing. The institution also avoids direct-listed equity portfolio management, concentrating solely on instruments that deploy into the real economy rather than secondary-market trading.

ALTUM coordinates with commercial lenders through guarantee products, covering up to 80% of loan principal on qualifying SME credits. During the 2020 liquidity shock, it directed over €400 million in state-backed guarantees and moratorium-adjusted loans through partner banks. The institution supplements, rather than competes with, the commercial banking system—operating where private credit gaps emerge.