BPM Capital backs DenEesti MBO with mezzanine

The GP provided a mezzanine loan to the managing director of DenEesti, Ryan Jenkins, in a management buyout.

With the capital injection, DenEesti will start operations in new ports along the Baltic sea, and will also be looking across the region to bring cruise ships into new ports, Jenkins told Unquote.

The deal is the seventh transaction from BPM's fund, which held a final close on its hard-cap of €70m in January 2015. BPM Mezzanine Fund invests in mezzanine transactions in Estonia, Latvia, Lithuania and Poland, focusing on high-growth SMEs and lower-mid-cap businesses.

BPM's fund does not focus on specific sectors, and targets mainly sponsorless expansion and acquisition projects aimed at facilitating growth in the Baltic countries and Poland, investing between €2-10.5m per ticket.

The value of the funding for DenEesti is understood to be at the mid-point of its €2-10.5m equity ticket range.

Commenting on the deployment of the fund, BPM partner Martin Reinson told Unquote it will likely make three to five more investments.

Before a further fundraise is considered, the fund will likely see a first exit, although it would be difficult to predict when this may happen as the decision to divest is up to the management teams and companies, which have signed five-year contractual loans with BPM, Reinson added.

Company
Founded in 1999 and headquartered in Tallinn, Estonia, DenEesti was established by British and Estonian tourism professionals to offer shore services to cruise ships in Tallinn. The company serviced 100 ship calls in Tallinn in 2017, according to the firm.

People
DenEesti – Ryan Jenkins (managing director).
BPM Capital – Martin Reinson (partner).

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• Topics
• Expansion
• CEE
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• Estonia
• Mezzanine