We invest in mezzanine transactions in Estonia, Latvia, Lithuania and Poland

BPM considers buy-outs, growth capital and capital restructuring transactions.

BPM backs proven business models and experienced management teams.

Our story

BPM is one of the few funds dedicated to mezzanine investments in the region.

BPM is an independent mezzanine financing provider for small and medium-sized enterprises in Baltic countries and Poland. BPM was founded in the end of 2014. It is managed by a team of four partners Kalmer Kikas, Martin Reinson, Priit Veering and Pawel Zabrzycki, all with extensive experience in mezzanine investing and an established contact network in the target region.

BPM is operating out of two offices in Tallinn, Estonia and Warsaw, Poland.

BPM is one of the few funds dedicated to mezzanine investments in the region.

BPM Mezzanine Fund and BPM Mezzanine Fund II have a combined capital commitments close to EUR 130 million, supported by a prominent investor base, which includes among others, the European Investment Fund and the European Bank for Reconstruction and Development.

BPM is the member of EstVCA.

Strategy

BPM seeks to provide mezzanine financing to companies with strong track record and excellent management practices in need of buy-out or expansion capital.

Clients

Small and medium-sized enterprises and lower midcap companies with strong track record and excellent management practices. BPM does not invest in start-ups and turnaround situations, as well as in listed companies and real estate.

Region

Estonia, Latvia, Lithuania and Poland.

Sectors

BPM has no sectoral focus and can consider a wide range of opportunities, excluding, however, tobacco, alcoholic beverages, firearms and gambling related businesses.

Mezzanine loan components

Typically mezzanine loans have 3 components: cash interest, payment-in-kind interest (PIK) and equity kicker/additional interest.

Day-to-day management of portfolio companies

BPM is purely financial investor, which means that BPM does not take active role in managing portfolio companies. BPM believes that management teams who have successfully run respective companies for years are more competent than BPM team members in managing their business. BPM will follow the financial performance of portfolio companies on a monthly basis. BPM team is motivated to support the investee in every possible way as one part of the Fund’s return is dependent on equity kicker.

BPM is committed to being a responsible investor.

Mezzanine

Mezzanine is an instrument which combines the characteristics of both debt and equity. With the help of mezzanine, the borrower/entrepreneur can:

  • Retain control over the company
  • Decrease or fully avoid dilution
  • Improve return
Advantages of mezzanine loan for an entrepreneur
  • Mezzanine investor might be willing to provide capital in a situation where bank financing is not available due to lack of hard assets to be pledged or too high leverage.
  • Second rank asset pledges behind senior lenders and/or share pledge are accepted. Sometimes personal guarantees are necessary.
  • With mezzanine loan the control over the company remains with the entrepreneur and dilution is limited or avoided, often the opposite with equity investors.
  • Mezzanine loan has less impact on cash flow as compared to senior debt through bullet repayment structure.

Mezzanine ranks behind senior debt in seniority, hence bearing higher risk. Increased risk
tolerance is compensated by higher returns in comparison to bank financing.

Responsible investment policy

BPM invests in sponsorless and private equity sponsored mezzanine transactions in Estonia, Latvia, Lithuania and Poland. BPM provides financing for small and medium-sized enterprises and lower midcap companies with strong track record and excellent management practices.

BPM Mezzanine Fund has a prominent investor base, which includes among others, the European Investment Fund, the European Bank for Reconstruction and Development, pension funds and family offices.

BPM, as a mezzanine financing provider, believes that responsible investing and ESG (Environmental, Social and Governance) are important items evaluating the debt service capacity of the portfolio companies’ and when managing investment risks. In addition, BPM takes into account stakeholders’ ESG expectations and aims to be a good corporate citizen.

BPM considers sustainability an important part of the business strategy. We believe that environmental, social and governance issues can have a material impact on financial performance of our business activities as well as on the companies in which we invest. Consideration of the ESG impact is a part of our day-to-day operations, investment process and governance of our portfolio companies. We are committed to continuously develop and improve our responsible investment policy and its implementation.

BPM team is dedicated to high ethical and professional standards and behaviour.

Portfolio investments
  • BPM does not invest in enterprises engaged in any of the activities appearing on the EBRD Environmental and Social Exclusion List and Category A list.

  • We have pre-investment review, investment portfolio monitoring and reporting process where besides financial and commercial factors all relevant environmental, social and governance issues and risks are considered.

  • We believe that ESG factors such as corporate governance, business relations, social and environmental responsibility, as well as customer and employee satisfaction are important for long term sustainability and good business results of our portfolio companies.
People
  • We comply with relevant regulations governing the protection of human rights, occupational health and safety standards and labour, environmental and business practices of the jurisdictions in which we conduct our business.

  • We offer an international and dynamic work environment, where every employee has an opportunity to develop its professional skills. Our goal is to have committed and motivated staff.

  • In our operations we are committed to provide employee-friendly work environment, based on non-discrimination, equal treatment and good work-life balance.

  • Employees and Partners are trained to ensure that everybody works in accordance with the approved Responsible Investment Policy.
SFDR Disclosures

Portfolio

Read More
Read More

Exited investments

Read More
Read More
Read More
Read More
Read More
Read More
Read More
Read More
Read More
Read More
Read More

Team

BPM Capital has been founded and is managed by a team of four partners, who have extensive experience in mezzanine investing in the region.

Kalmer Kikas
Managing Partner
Martin Reinson
Partner
Pawel Zabrzycki
Partner
Priit Veering
Partner
Külli Kalamäe
Financial Manager

Our offices

Estonia

Roosikrantsi 11, 10119, Tallinn
+372 605 0073
info@bpmcapital.eu

Poland

Zajęcza 15, 00-351, Warsaw
+482 2244 1109
info@bpmcapital.eu

Latest news

3 February 2026

BPM Mezzanine Fund exited investment in Zoo Factory Sp. z o.o.

BPM Mezzanine Fund SICAV-SIF, SCA (BPM) has provided financing for the MBO of Zoo Factory Sp. z o.o back in 2020. Zoo Factory is one of Poland’s leading distributors of pet treats and accessories, with its well known brands (Hilton, CatSi, Animals) and long-established presence and position in the domestic market. This exit transaction marks also the entry of The Nutriment Company (TNC)
into the Polish pet products market.

Commenting on the exit, Paweł Zabrzycki, Partner of BPM, said: “We would like to thank Sławomir Musur (the CEO) and the whole Zoo Factory team for the excellent cooperation during the investment period — open dialogue, strong execution and a shared focus on the fundamentals of the business. This allowes Zoo Factory to thrive in the dynamically changing retail envirnment in Poland. We wish Zoo Factory and its new stakeholders a continued success in the attractive pet products market in Poland.“

The CEO of Zoo Factory, Mr. Sławomir Musur, commented: ”the transaction with TNC is a natural step in the development of our company and will provide a smooth transition going into the future as a part of an international group. With help and support of the BPM team, Zoo Factory was able to solidify its market position and significantly diversify its product offering in the last years.”

For further enquiries, please contact:

BPM Capital: Paweł Zabrzycki, tel: +48 784 695 890, e-mail: pawel.zabrzycki@bpmcapital.eu

Zoo Factory: Sławomir Musur, tel: +48 881 956 537, e-mail: slawomir.musur@zoo-factory.pl

View all news