BPM Capital

Overview

BPM Capital is an independent investment firm specializing in mezzanine financing for small and medium-sized enterprises in the Baltic region and Poland. Founded in 2014, the firm operates out of offices in Tallinn, Estonia, and Warsaw, Poland. It is managed by a team of four partners: Kalmer Kikas, Martin Reinson, Paweł Zabrzycki, and Priit Veering, all with extensive experience in mezzanine investing and an established contact network in the target region. BPM Capital is supported by prominent international and domestic institutional investors, including the European Investment Fund and the European Bank for Reconstruction and Development. The firm's capital commitments amount to approximately EUR 130 million, managed through BPM Mezzanine Fund and BPM Mezzanine Fund II. BPM Capital is a member of the Estonian Private Equity and Venture Capital Association (EstVCA). BPM Capital focuses on providing mezzanine financing to companies with strong track records and excellent management practices in need of buy-out or expansion capital. The firm does not invest in start-ups, turnaround situations, listed companies, or real estate. BPM Capital has no sectoral focus and can consider a wide range of opportunities, excluding tobacco, alcoholic beverages, firearms, and gambling-related businesses. The firm's investment strategy typically involves mezzanine loans with three components: cash interest, payment-in-kind interest (PIK), and an equity kicker or additional interest. BPM Capital is a purely financial investor and does not take an active role in managing portfolio companies, believing that management teams who have successfully run respective companies for years are more competent than BPM team members in managing their business. The firm monitors the financial performance of portfolio companies on a monthly basis. BPM Capital's portfolio includes companies such as MarkIT, OC Vision (exited), Eskaro (exited), DEAC (exited), Corle, Tahe Outdoors, DenEesti, Smiltenes Piens (exited), Zoo Factory, and iDS (exited). The firm has a track record of successful investments and exits, demonstrating its commitment to supporting the growth and development of its portfolio companies. BPM Capital's investment philosophy emphasizes responsible investing and ESG (Environmental, Social, and Governance) considerations, aiming to be a good corporate citizen and ensuring that environmental, social, and governance issues are evaluated in the debt service capacity of portfolio companies and when managing investment risks. The firm is committed to continuously developing and improving its responsible investment policy and its implementation.