NEW FUND: BPM Mezzanine Fund II held the first close to invest in mezzanine debt in the Baltic and Polish growth companies

11 April 2022

Photo: BPM team Kalmer Kikas, Martin Reinson, Priit Veering, Külli Kalamäe, Pawel Zabrzycki

BPM has reached the first close of its second investment fund, BPM Mezzanine Fund II with the first close commitments close to €60m. The target size of BPM Mezzanine Fund II is €70m.

BPM is an 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 more than two decades of experience in mezzanine and equity investing 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 financings and recapitalizations. 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 €3 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 II is supported by a prominent investor base, which includes the European Investment Fund (through the Baltic Innovation Fund 2 and partly through the Equity Facility for Growth Programme Cosme), the European Bank for Reconstruction and Development (EBRD), Swedbank Investment Funds and family offices. Deca Legal acted as legal advisor to the Fund.

Kalmer Kikas, Managing Partner of BPM said: “We are delighted to receive the backing of our limited partners allowing BPM to reach the first closing in this turbulent environment. Our ability to reach the first close shows the attractiveness of our investment model and the growth prospects of the Baltic countries and Poland. We aim to provide the SME companies with flexible and tailor-made mezzanine and equity financing solutions.”

More information about BPM

BPM (www.bpmcapital.eu) is an independent investment manager operating out of two offices, in Tallinn and Warsaw. It has been founded and is managed by Kalmer Kikas, Martin Reinson, Paweł Zabrzycki and Priit Veering. BPM is supported by prominent international and domestic institutional investors. BPM‘s first fund portfolio companies include Markit (exited), OC Vision (exited), Eskaro (exited), DEAC (exited), Corle, Tahe Outdoors, DenEesti, Smiltenes Piens (exited), Zoo Factory and iDS (exited).

About Baltic Innovation Fund 2

Baltic Innovation Fund 2 is a EUR 156m Fund-of-Funds initiative launched by the EIF in co-operation with the Baltic national promotional institutions – KredEx (Estonia), Altum (Latvia) and Invega (Lithuania). It is building on the success of its predecessor programme, BIF 1.

Further enquiries:

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


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Photo credit: BPM; EIF; https://unsplash.com/@markuslaanisto


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