MICROCAPITAL BRIEF: IFC Places $18m in Equity in BlackPeak Capital to Support SME Growth in Southeast Europe

The International Finance Corporation (IFC), a member of the World Bank Group, recently issued an equity investment of EUR 15 million (USD 18 million) to BlackPeak Southeast Europe Growth Equity Fund (BlackPeak Fund I), which is managed by BlackPeak General Partner SARL Capital. The investment is intended to develop small and medium-sized enterprises (SMEs) in countries such as Bulgaria and Serbia through expanded operations and increased productivity, thus supporting job creation and economic recovery in the region. In particular, BlackPeak Capital will target export-oriented companies as well as those in fields such as retail, healthcare, business services, manufacturing and information technology.

Founded in 2014, BlackPeak Capital is a private equity firm specializing in growth equity in Bulgaria, Croatia, Romania, Slovenia and Serbia. The firm’s goal is to “foster economic development by providing a model for innovation, job creation, and growth.” Its offices are located in the cities of Bucharest, Ljubljana, Sofia and Vienna. Since the firm’s launch, it has deployed capital from its BlackPeak Fund I to invest in 12 companies in amounts ranging from EUR 4 million (USD 4.8 million) to EUR 10 million (USD 12 million).

Founded in 1956, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. During the 12 months ending June 2020, IFC reported total disbursements of USD 26 billion, closing the year with total assets of USD 96 billion.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2021, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2020, the World Bank Group disbursed funds totaling USD 54 billion.

By Teo Lin-Bianco, Research Associate

Sources and Additional Resources

IFC press release
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=26403

BlackPeak Capital homepage
https://www.blackpeak-capital.com/

IFC annual report 2020
https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/annual+report/download

World Bank Group homepage
https://www.worldbank.org/

Previous MicroCapital article on IFC
https://www.microcapital.org/microcapital-brief-ifc-commits-1b-to-msmes-in-africa-recovering-from-pandemic-recession-via-risk-sharing-mezzanine-financing/

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find more at https://www.microcapital.org/products-page/.