Mezzanine Fund

The Mezzanine Fund will provide mezzanine funding to enterprises. Mezzanine is a hybrid debt/equity financing combining a loan component with an equity or equity-like instrument. The financing may be used to finance increased production capacity market or product development or enterprise restructuring.

The allocated amount under the JEREMIE Initiative to the Mezzanine Capital Fund amounts to EUR 30 million or 50% of the target fund size. The fund manager will attract at least 50% of private investments resulting in total funding of EUR 60 million.

Key Terms

Funds’ investment period: until the end of 2015.
Enterprise focus: The fund will invest 70% of its capital in Small and Medium-sized Enterprises (SMEs ) and 30% of its capital to Mid-Cap companies.

Eligibility Conditions:

  • The applicant must be must be registered under the Commerce Act of Bulgaria.
  • The applicant or the investment to be financed must not be in the sectors stipulated by Section A – Agriculture, forestry and fishing as listed in NACE Rev2. Furthermore, investments are subject to restrictions in relation to SMEs active in the following sectors:
      vi. Arms production and trading;
      vii. Gambling;
      viii. Tobacco;
      ix. Human cloning;
      x. Genetically Modified Organisms;

Selected Financial Intermediaries

Bulgaria Mezzanine Capital – a joint venture between Growth Capital Partners AG (GCP) and Rosslyn Capital Partners (RCP). GCP was founded in 2010 by 6 experienced fund managers that have invested around EUR 400 m of mezzanine in mid-market companies in Central and Eastern Europe including 9 transactions in Bulgaria. RCP was established in 2002 and since then has raised and/or managed five equity funds with more than 30 direct investments, mainly in Bulgaria.

The mezzanine fund with a target size of EUR 60m will provide mezzanine financing for growth expansion, external growth and capital restructurings in the Bulgarian lower mid-market, across a wide range of sectors. The targeted investment size per transaction is EUR 2 – 5 million.

Bulgaria Mezzanine Partners

Vassil Georgiev

Daniel Alexandrov
e-mail: office@mezzanine.bg

13, Slavianska Str.
1000 Sofia
Tel: (+359 2) 915 80 10
Fax: (+359 2) 981 58 12
www.mezzanine.bg

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