Sofia, Bulgaria, June 14, 2021—A private equity investment by IFC will increase access to growth capital for small and medium businesses in Southeast Europe. IFC's €15 million investment in BlackPeak Southeast Europe Growth Equity Fund—managed by BlackPeak General Partner SARL Capital—will help companies across the region expand operations and boost productivity, thereby creating jobs and accelerating economic recovery.
"This is a major milestone for BlackPeak Capital and for the regional private equity ecosystem," said Rossen Ivanov, Managing Partner of BlackPeak Capital. "Southeast Europe is already home to entrepreneurs who have built global or European leaders in specific niches, and we are very excited about the opportunity to be able to partner with some of them and help them grow both organically and via add-on acquisitions."
A wall-climbing center in Sofia, Bulgaria, built by Walltopia, the world`s #1 wall manufacturer and a BlackPeak Capital investee company. Photo credit: Walltopia
The Fund which aims to raise up to €120 million will invest in small and medium companies in Southeast Europe, primarily in Bulgaria, Romania, Serbia, Croatia, and Slovenia. The Fund will focus its investment in export-oriented companies with unique products or services and those operating in a range of areas, including information technology and software, niche manufacturing, business services, health care, consumer, and retail.
While private equity fundraising in the region remains challenging, small and medium companies face an increasing need for long-term capital, especially with the COVID-19 pandemic widening the gap for equity financing.
In addition to providing capital, BlackPeak Capital will help its investees implement IFC's environmental and social policies and promote corporate governance through board seats and positions on key management committees.
"In addition to providing growth capital, private equity funds also bring operational experience and industry expertise, transforming small and medium businesses into institutionally managed companies, thus increasing their competitiveness and productivity," said IFC's Wiebke Schloemer, Director for Europe and Central Asia.
IFC has supported the development of private equity funds in Europe and Central Asia for over 20 years, with commitments of over $600 million in the region as of April 2021.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
Stay Connected
www.facebook.com/IFCwbg
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts
www.ifc.org/SocialMediaIndex
www.instagram.com\ifc_org
About BlackPeak Capital
BlackPeak Capital is a private equity firm focused on investing growth equity in Bulgaria, Romania, Slovenia, Croatia, and Serbia. BlackPeak Capital focuses on partnering with Southeast Europe's outstanding entrepreneurs who have the ambition to build world-class companies on the basis of continued innovation, organic growth, and add-on acquisitions. BlackPeak Capital was established in 2014 to manage BlackPeak Fund I which invested in 12 companies, including global innovation leaders such as Walltopia, International Power Supply, Software Group, and Bulpros. The investment team consists of professionals with significant investment, investment banking, consulting, and operational experience gained in CEE, Austria, the UK, and the US. BlackPeak Capital operates out of offices in Sofia, Bucharest, Ljubljana, and Vienna.
