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

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Exited investments

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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

8 April 2025

BPM Mezzanine Fund II provided financing for the acquisition of Medical Mazella

BPM Mezzanine Fund II usaldusfond has provided financing for an MBI transaction in rigid polymer packaging sector – an acquisition of Medical Mazella Sp. z o.o. – a Polish producer of specialized packaging solutions by MBI Team led by dr Jakub Niestrój. Medical Mazella sp. z o.o is a leading manufacturer of PP/PET/PE rigid packaging for the pharmaceutical, laboratory and e-fluid segments. The Company has a long  history of  growth and strong profitability and the new management team will embark on a scaling up path. This strategic financing supports Medical Mazella expansion in the medical sector, reinforcing Company’s market presence and growth potential.

Commenting on the deal, Mr. Jakub Niestrój, the new CEO of Medical Mazella noted: “the buy-out of Medical Mazella is the first step in implementing an expansion strategy in the specialist packaging sector. We look forward to co-operate with Company’s existing clients and vastly increase the business and its client and product portfolio in the future. I believe that consolidation in this market is inevitable and we are in a good position to participate in this process forward.”

For BPM team, it marked next transaction from its second fund – BPM Mezzanine Fund II usaldusfond, which continues the mezzanine strategy of the first fund. Paweł Zabrzycki, Partner of BPM, said: “We are very happy to be able to back an ambitious management team in this exciting expansion project. It is an outstanding opportunity to invest in a specialist packaging business with a prominent customer base and great product quality reputation. We share the view of the management team that there is definitely room for consolidation in this sector in Poland and are very excited to back them in this process.”

For further enquiries, please contact:

BPM: Paweł Zabrzycki, e-mail: pawel.zabrzycki@bpmcapital.eu

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