BPM Mezzanine Fund holds first and final close at hard cap of €70m

BPM Capital is a new independent investment manager operating out of two offices, in Tallinn and Warsaw. It has been founded and is managed by a team of four partners with an extensive experience in mezzanine investing and an established contact network in the Baltic countries and Poland.

BPM will invest in mezzanine transactions in Estonia, Latvia, Lithuania and Poland. The investment focus will be on high growth small and medium-sized enterprises (SMEs) and lower midcap companies, as they are the main driver of the economic expansion, market share gains and earnings growth in the region and constitute the most attractive investment space. The Fund has no sectoral focus and can consider a wide range of situations such as buyouts, expansion financing, capital restructurings or shareholding reorganisations. BPM backs proven business models and experienced management teams aiming to take a company to the next level of development and wanting to retain a controlling stake. The Fund will invest between €2 and €10.5 million per transaction. BPM targets mainly sponsorless expansion and acquisition projects facilitating growth in the Baltic countries and Poland.

BPM Mezzanine Fund is supported by a prominent investor base, which includes the European Investment Fund (through the Baltic Innovation Fund and the Mezzanine Facility for Growth), the European Bank for Reconstruction and Development (EBRD), Ambient Sound Investments investment group (ASI), LHV Pension Funds and Swedbank Investment Funds. Van Campen Liem acted as legal advisor to the Fund.

Kalmer Kikas, Managing Partner of BPM Capital said: “We are delighted to receive backing of our limited partners allowing BPM to reach the final closing in this challenging fundraising environment. Our ability to reach the hard cap shows attractiveness of our investment model and the growth prospects of the Baltic countries and Poland. Our aim is to fill the evident gap in the capital markets for SMEs by providing tailor made mezzanine and equity financing solutions.”

European Investment Fund’s Chief Executive, Mr. Pier Luigi Gilibert stated: “We congratulate the team at BPM for achieving this significant milestone. The BPM Mezzanine Fund has emerged as a result of the cornerstone investments made by the European Investment Fund and will be the first such fund for this region in several years. This is another major step in the emergence of fully functional market infrastructure for the Baltic region.”

EBRD’s Director of Equity Funds, Anne Fossemalle: “The EBRD is pleased to support BPM in the Baltic States which will provide much needed alternative sources of finance to SMEs. BPM Mezzanine will contribute to SME development not only by offering capital but also by offering small entrepreneurs the expertise of experienced investors, thus improving SMEs’ corporate governance and providing assistance beyond finance. The EBRD is committed to supporting the development and growth of innovative local teams with far-reaching potential through its strategy and activities for the venture capital and private equity sector.”

The CEO of ASI Mr. Tauno Tats commented: „Prior positive work experience with the BPM Capital team has motivated ASI investment group to invest in BPM which we view as value possibility and useful risk diversifier.“

Mr. Harijs Svarcs the CEO of Swedbank Investment Management said: „We believe that BPM Capital team’s unique experience in mezzanine financing arena in Latvia and Baltics will provide outstanding platform to leverage existing investment opportunities in the region. Our previous experience shows that investment in Latvian and Baltic companies can provide both lucrative returns for pension plan beneficiaries and much needed capital investment for economic development with far-reaching positive implications.“

More information about BPM Capital

BPM Capital team has been working together for years gaining unique mezzanine investing experience in the region. Kalmer Kikas, the managing partner, has distinguished investment track record in mezzanine lending for SMEs in the Baltics and senior level investment and operational management experience since 1999 at Hanseatic Capital and Baltic Mezzanine. Martin Reinson has worked on numerous mezzanine transactions for Baltic Mezzanine and Nordic Mezzanine funds since 2006. Prior to that, he has worked as a management consultant. Pawel Zabrzycki has mezzanine investing experience since 2009 at Baltic Mezzanine and Nordic Mezzanine funds. He has worked also a number of years in corporate and investment banking in Warsaw and London. Priit Veering has over ten years of a senior level investment management experience. He has been active in mezzanine lending since 1999 at Baltic-American Enterprise Fund and Hanseatic Capital. 

About Baltic Innovation Fund

The Baltic Innovation Fund is an innovative investment initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF that is unique in its nature across Europe. Within this initiative EIF is partnering with three national agencies – LGA (Latvia), KredEx (Estonia) and INVEGA (Lithuania). The Baltic Innovation Fund will invest EUR 100 million into private equity, mezzanine and venture capital funds focused on the Baltic States during 2013-2016.

Further enquiries:
BPM Capital: Kalmer Kikas, tel: +372 50 19 745, e-mail: kalmer.kikas@bpmcapital.eu

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