News and Analysis

Four candidates apply for the management of the Mezzanine / Growth Fund financial instrument

23.10.2018

Today, 23 October 2018 became an important milestone in the public procedure to select the Financial Instrument Mezzanine/Growth Fund (MGF) manager: the applications submitted by the aspiring MGF managers were opened at a public meeting held in the Fund of Funds (FoF) building. The MGF is funded by Operational Programme ‘Innovation and Competitiveness 2014–2020’ (OPIC) and co-funded by the European Regional Development Fund (ERDF).

The total budget of the MGF will be approximately EUR 55 million, of which EUR 38.5 million in public funding, which should leverage at least EUR 16.5 million in additional private contributions.

The financial instrument supports the enhancement of the competitiveness of Bulgarian Small and Medium-sized Enterprises (SMEs) which have reached a maturity phase in their development. The MGF will provide access to additional funding for SMEs that have a growth potential and plan to expand or improve their operations, enter new markets or develop new products and services. The amount of investments in each SME will range between 2.5 and 7 million euro.

The Mezzanine/Growth Fund is an innovative tool in the capital market. The MGF will provide its support in the form or equity or quasi-equity investments, a major part of which will be mezzanine financing.

Mezzanine is a quasi-equity investment which resides in the space between equity and debt financing. Generally, it enables enterprises obtain venture capital without necessarily transferring any major part of their ownership to the new investor.

The MGF investment period is five years and the lifetime of the Fund itself is 10 years potentially extendable by two additional years.

The following candidates have submitted applications for the public contracting procedure:

  1. DZZD Hemus Capital – Angel Gyaurov, Vasil Chakarov, Alexander Zahariev, Anton Kipitov;
  2. Bulgarian Mezzanine Partners DZZD – Ivan Marcos Hristanov, Evgeni Angelov, Eleonora Hristova Sarbova, Diana Pavlova Aladzhova, Lloyd Frederick Schultz, River Styxx Capital EAD;
  3. JV Mayfair Partners – Andrew Sergio Gazitua, Gavin John Alexander, Gustavo Perota, Iliyan Dimitrov Iliev, Yordan Dimitrov Petrov;
  4. JV CCL Bulgaria – Norman Antony Stalker, Florian Hut, Barush Sivri, Orinbashar Muratovich Kuatov, Dimitar Nikolov Kostadinov, Ivaylo Georgiev Spassov, Dimitar Venelinov Uzunov, Georgi Krastev Vangelov.

The next step now is to review the applications following which the eligible candidates will be invited to submit their initial bids.