BlackPeak Capital's 3rd fund hits €125 million at first close

Bulgaria-headquartered private equity firm BlackPeak Capital on Monday announced the first close of its Southeast Europe Growth Equity Fund II (BPSEEF II) at €125 million.

The Luxembourg-domiciled fund is targeting €150 million, with a hard cap of €200 million, and expects to hold its final close in 2027, BlackPeak Capital said in a press release.

BPSEEF II plans to invest between €7 million and €20 million per transaction in fast-growing companies across Southeast Europe, focusing primarily on Bulgaria, Romania, Croatia, Slovenia and Serbia. It may also pursue opportunities in other Central and Eastern European markets, including Poland, Hungary, Slovakia, the Baltic states and the Western Balkans.

The fund will take significant minority or majority stakes, partnering with founders to provide capital, expertise and business networks to support companies' expansion into regional and global markets.

BPSEEF II will pursue a generalist investment strategy, targeting companies in sectors such as e-commerce, healthcare, digitalisation and sustainability. It aims to build a portfolio of 10 to 12 companies diversified across countries, sectors and end markets.

The fund is backed by the European Investment Fund (EIF), the European Bank for Reconstruction and Development (EBRD), Erste Asset Management and the International Finance Corporation (IFC). The EIF has committed €35 million, comprising €10 million under the Romania Recovery Equity Fund and €25 million under the Bulgaria Recovery and Resilience Plan. The EBRD and IFC have committed €30 million and €20 million, respectively. The fund also saw support from new investors, including HBOR, the Croatian Bank for Reconstruction and Development, and Universal Pension Fund Doverie, Bulgaria's largest pension fund, together with regional private investors.

"Five years ago we spent much of our time explaining the investment case for Southeast Europe. Today, the region remains one of the fastest growing in Europe and its success stories increasingly make that case on their own. We see a new generation of ambitious founders who have built leaders in their specific niches. What these companies lack is growth capital at the scale they need and expertise to expand internationally. BPSEEF II is specifically designed to address that gap," - Ivailo Gospodinov, Managing Partner at BlackPeak Capital.

In 2022, BlackPeak Capital completed final closing of Southeast Europe Growth Equity Fund at €126 million, surpassing the original target of €120 million, backed by the EIB, the EBRD, the IFC, Erste Asset Management, and some of the regional pension funds. That fund invested in 11 companies and completed 16 add-on acquisitions.

BlackPeak Capital was established in 2014, and soon after, it launched its first fund, BlackPeak Fund I, which invested in 12 companies, according to BlackPeak Capital's website.

BlackPeak Capital has €150 million of assets under management.