OREANDA-NEWS. January 27, 2015. The 70 million euro BPM Mezzanine Fund which is to start operating this year in the Baltic countries and Poland is planning to invest about a third of its volume into Estonian enterprises in five years.

The most preferred size of an investment into one enterprise is 3-7 million euros but other possible sizes remain between two and 10.5 million euros, leading partner of fund Kalmer Kikas said on Friday at the fund's presentation event. According to Kikas the period of investments is five years and taking into account that the fund operates of four markets, that would mean the fund's average annual investment capacity on each market would be 3-4 million euros.

According to Kikas BPM is planning to make 2-3 investments a year but depending on the abundance of investments the fund may make more. According to the fund's plans a third of its capacity is to be invested in Estonia, a third in Poland and the rest in Latvia and Lithuania.

The new mezzanine fund is to invest into medium-sized growth companies, finance management buyout, and mergers and takeovers. The fund will not finance reverse mergers or startup companies.

The investor base of the fund which offers mezzanine financing includes through the Baltic Innovation Fund the European Investment Fund, the European Bank for Reconstruction and Development, investment company of Estonian shareholders of Skype, Ambient Sound Investments, LHV pension funds and Swedbank Investment Management. Operations of the fund with a capacity of around 70 million euros will be managed from offices in Tallinn and Warsaw by BPM Capital which was founded by fund managers of Estonia and Poland.