BPM invests 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

Mezzanine

Mezzanine ranks behind senior debt in seniority, hence bearing higher risk. Increased risk tolerance is compensated by higher returns in comparison to bank financing. On the other hand, mezzanine ranks above equity in terms of seniority, as it is protected by covenants the equity holder does not have (such as second rank asset pledges behind senior lenders and/or share pledge). Accordingly, the mezzanine lender does not demand a return as high as the equity holder. Mezzanine has advantages compared to both debt and equity. From an entrepreneur's perspective, a mezzanine investor might be willing to provide capital in a situation where bank financing is not available (lack of hard assets to be pledged, too high leverage for banks), whereas control over the company remains with the entrepreneur and dilution is limited or avoided (often the opposite with equity investors).

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

Our offices

tallinn

Estonia

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

Poland

Zajęcza 15, 00-351, Warsaw
Phone +48 22 244 11 09
pawel.zabrzycki @ bpmcapital.eu
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