Co-investment growth equity fund

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Executive Summary

BlackPeak Capital (“BlackPeak,” the “Fund”) is a €15 mn co-investment growth equity fund established in August 2014, under the JEREMIE initiative

in Bulgaria. The Limited Partners of the Fund are the European Investment Fund (www.eif.org) and the Fund managers

BlackPeak invests in growth equity or mezzanine in established, high-growth Bulgarian and regional companies. The Fund’s strategy is to support

exporters with unique competitive advantages globally or clear market leaders on the domestic market

The Fund has a generalist approach with preference for specialized manufacturing, IT, business services, and food sectors

BlackPeak typically invests €0,5-4 mn per transaction, which is matched on pari passu terms by another institutional or private co-investor

To-date, BlackPeak Capital has invested €9 mn in 8 companies and has attracted an additional €12 mn from co-investors. Importantly, BlackPeak

Capital has attracted a number of high-profile regional co-investors, including CEE Equity for their first deal in the country

BlackPeak Capital has invested in some of Bulgaria’s most dynamic companies, including Walltopia, Bulpros, International Power Supply, and others.

Most of the portfolio companies have grown with a CAGR of 20-100% over the past 3-5 years

The Fund is managed by Rossen Ivanov and Ivailo Gospodinov (“Management Tem”). Both Rossen and Ivailo have significant deal-making and

investment experience in Bulgaria and abroad. Prior to BlackPeak, Rossen and Ivailo headed Entrea Capital and Raiffeisen Investment, respectively.

Between them, they have attracted more than €1bn in investment in Bulgaria in their previous roles

The Management Team takes a very pro-active role in supporting portfolio companies, especially in the areas of financial management, corporate

governance, recruitment of senior management, and growth through acquisitions

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INVESTMENT STRATEGY Focus on SMEs with proven growth and profitability track record

Generalist industry approach

Attractive industries from FDI perspective

Positive growth even during crisis years and strong future growth prospects

Sectors with opportunities for structural changes and consolidation

Sectors with competitive advantage based on features other than labor cost

Avoid politically sensitive sectors

Top 3 player on local market or potential to become top 3

Proven track record of growth and profitability even in crisis years

Clear strategy for growth and platform for national and regional expansion

Strong niche position in export markets

Sustainable competitive advantages on a global level

Proven track record of investor interest in the industry in CEE

Preference for exit within 3-5 years

Industry knowledge and operational excellence

Proven track record

Clear strategy for development and use of funds

Reputation and integrity

INDUSTRY FOCUS

COMPANY

CHARACTERISTICS

EXIT

OPPORTUNITIES

OWNERS AND

MANAGEMENT

Focus on established firms with annual revenues of €1 - 30m

Opportunistic seed round investmentsINVESTMENT

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BENEFITS FOR THE ENTREPRENEURSHigh value-added for the investee companies during the holding period

Formulation of data-driven strategy

Ability to support growth through M&A

Access to strategy advisors and mentors to provide an independent review

Guidance on best practices for financial management

Help with recruitment of company CFO and other positions

Support in establishing KPIs and reporting procedures

Access to top professionals and executives

Access to and ability to attract Bulgarian professionals from abroad

Participate in interviews for all senior managers

Direct contacts with all leading banks on the market, PE funds, and other sources of funding

Expertise on structuring all types of additional funding

Support in planning for next-stage funding

Support in preparing for a subsequent sale/IPO

Improvement of corporate governance

Continued monitoring in deals and buyers in respective sector

STRATEGIC

DIRECTION

FINANCIAL

MANAGEMENT AND

MONITORING

RECRUITMENT /

OPERATIONAL

IMPROVEMENT

FINANCING

EXIT PLANNING

CAPITAL

Access to equity and mezzanine capital

Possibility to raise additional debt due to stronger capital base

Reputation of having EIF as ultimate shareholder

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TEAM

Rossen Ivanov

(Managing Partner)

Founder, Entrea Capital

McKinsey, New York

European Bank for

Reconstruction and

Development, London

Financial Analyst, Procter &

Gamble, Bucharest

MBA from the Harvard

Business School

BA in Economics from the

American University in

Bulgaria

Ivailo Gospodinov

(Managing Partner)

Managing Director,

Raiffeisen Investment

Director, Forem Consulting

Audit Manager, EY

Audit Manager, Andersen

BA in Business

Administration from

Portsmouth University

ACCA certificate

Kiril Ivanov

(Investment Manager)

Director, Entrea Capital

Associate, Raiffeisen

Investment

Futures Trader, Harrison

Trading, Chicago

Market Maker, Chicago

Board of Options Exchange

MBA from the Stuart School

of Business at Illinois

Institute of Technology

Angel Stefanov

(Investment Manager)

Associate, Entrea Capital

Associate, Raiffeisen

Investment

Intern, BlackRock, NY

Intern, Merrill Lynch, Ithaca

MSc in Accounting and

Finance from the London

School of Economics

BSc (with honors) in

Business Administration

from Ithaca College

Adelina Stambolski

(Finance Manager)

Finance, Entrea Capital

Accountant, SocGen

MA degree in Accounting

from the University of

National and World

Economy in Bulgaria

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A WELL DIVERSIFIED PORTFOLIO…Companies operating across multiple industries on a multitude of markets globally

A world leading climbing walls manufacturing company, with over 1300 projects in 50

countries.CEE Equity Partners

A preferred producer and supplier of flavoring mixtures, spices and other combination

products for the food industry in Bulgaria.Private Investment

A manufacturer of power supply systems, with customers in 34 countries and an award

winning innovative line of products.PostScriptum Ventures

The leading IT services and solution provider in Southeastern Europe, with offices in

Bulgaria, Germany, Poland and the USA.Private Investment

A clothing and fabric recycling company with exports to Africa, Asia, and Europe.Innovation Cloud, Private

Investment

A company providing book printing outsourcing services to over 400 companies on the

French, Swiss and Belgian markets.Private Investment

A company focused on providing energy efficiency solutions in Bulgaria and the

region.PostScriptum Ventures

DESCRIPTION CO-INVESTOR

* Deal under final negotiations

COMPANY

A proprietary software development company, addressing the needs of the HR

services industry.BIG, Angel Investors

A company developing an innovative, cloud based veterinary practice management

software with global application.BIG, Angel Investors

*

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Walltopia (www.walltopia.com) is the world’s leading climbing walls manufacturer (www.walltopia.com). To-date, the company has completed

more than 1,300 projects in 50 countries. Walltopia's climbing gyms have transformed the climbing industry, making indoor climbing more

accessible, safe, and enjoyable

Since 2012, Walltopia has expanded its portfolio of products and services towards the amusement and entertainment industry and has started

offerring complete solutions for family entertainment centers, shopping malls, and adventure parks. Walltopia’s latest concepts such as Funtopia,

Rollglider, Rocktopia have already been installed globally. Walltopia’s full range of innovative active entertainment products is available at

http://walltopia.com/downloads

Walltopia has a dynamic, young team led by Ivaylo Penchev and Metin Musov. Ivaylo Penchev was nominated one of the 6 most dynamic

entrepreneurs globally who were selected for Accelerator discussions in the EY’s “World Entrepreneur Of The Year Summit”

Support M&A strategy and execution (considering 5 acquisitions)

Financial management and reporting

Support with recruitment of key personnel

Support with contacts for global expansion

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

#1 player globally, including 50%+ market share on the US market

Most innovative company in the industry – Walltopia’s products are

literally transforming indoor climbing

High-growth industry on a global scale

Outstanding management team

Proven financial performance (30%+ CAGR; 35%+ EBITDA margin;

low leverage)

DEAL SUMMARY

Co-investor: CEE Equity

Industry: Specialized manufacturing

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Bulpros (www.bulpros.com) is one of the leading IT services and solution providers in Southeastern Europe. Bulpros provides the whole

spectrum of IT lifecycle services – software development in all core technologies, design and development of web and mobile solutions and

applications, infrastructure and cloud services

The company has established successful customer and partner relations with Fortune 500 companies such as Cisco, Microsoft, IBM, Unisys,

VMware, Siemens, T-Systems, etc. Bulpros is a co-founder of the Bulgarian Outsourcing Association and a member of the American Chamber

of Commerce and the German Outsourcing Association

Headquartered in Sofia, Bulgaria, Bulpros has 3 more offices in Bulgaria (Plovdiv, Varna and Burgas), in the USА (Santa Clara Chicago and Las

Vegas), Germany (Frankfurt am Main and Munich) and Poland (Warsaw)

Bulpros has also developed two own products – Staffico and Jabborate

Support M&A strategy and execution (two acquisitions executed

already)

Financial management and reporting

Support with contacts for global expansion

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

One of the leading regional players in IT outsourcing/BPO (500+

staff)

Wide range of delivery capabilities

Top international clients

Strong management team

Proven financial performance (100%+ CAGR; 15%+ EBITDA

margin; low leverage)

DEAL SUMMARY

Co-investor: Private individual (German citizen)

Industry: IT/BPO

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International Power Supply is a manufacturer of power supply systems (www.ips-group.net) with customers in over 34 countries. The Company

manufactures and markets globally a range of power systems with applications in the telecom, energy, defense and other industries

IPS’s flagship product, Exeron, is an innovative off-grid power management solution, which won the 2014 Intersolar 2014 world innovation award

for EES (Electrical Energy Storage) in Munich, Germany

Exeron is the world’s first modular off-grid system and possibly the industry’s most advanced product providing unparalleled reliability, scalability,

and modularity. It aggregates energy from various sources, e.g. sun, grid (if available), diesel generators and has virtually unlimited battery

storage capacity. Its special software allows it to make autonomous decision under many different scenarios to optimize consumption and

minimize cost

Support company with patent application in the US

Financial management and reporting

Support with contacts for global expansion and business

development

Support with planning for construction of new factory

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

Innovative product (Exeron) with proven installations globally

Multiple applications across a range of key industries (telco, energy,

renewables, infrastructure, military)

Solid platform on which to launch Exeron globally

Strong management team

Already received offers to be bought out by a strategic investor

DEAL SUMMARY

Co-investor: PostScriptum/Mark Crandall

Industry: Electrical systems manufacturing

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Rigana is one of the preferred suppliers to the Bulgarian meat processing industry of flavoring mixtures, spices and other combination products

Products are developed in an in-house laboratory by a team of experienced professionals, which apply innovative approach to new recipes

development and experiment with new compositions, improved combinations of spices and additives in accordance with the latest global trends

The company has an extensive line in excess of 50 products spread over 7 categories and services a multitude of local and regional clients

The investment will enable the Company to upgrade its production facilities as well as execute acquisitions in Bulgaria and the region

Support M&A strategy and execution

Financial management and reporting

Support with contacts for regional expansion

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

Jointly with co-investor, Rigana is by far the leading Bulgarian and

regional specialized supplier of ingredients for the food industry

Opportunity for market consolidation

Strong brand name and client recognition

Strong management team with an ambitions M&A growth plan

Guaranteed exit towards co-investor

DEAL SUMMARY

Co-investor: Bulgarian strategic co-investor (confidential)

Industry: Food

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Humanita is a clothing recycling business established by Reiner Ziegmund, a German national living in Bulgaria

The Company is one of the leading second-hand clothing retail chains in Bulgaria, operating both locally and globally. The company exports to

key markets for second-hand clothes including within Europe, Africa, and Asia

It is also the leader in Bulgaria in the fast growing market of cleaning cloths production for industrial usage. The firm produces environmentally

friendly, cotton cleaning items, complying with the requirements of the German standard DIN6150.

The investment will enable Humanita to construct a new sorting and recycling facility with capacity of up to 3 million items per month as well as

establish online presence for the re-sale of second-hand clothing

Work with co-investor on building an online platform for clothes re-

selling

Support plan for manufacturing plant construction

Financial management and reporting

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

Founder with significant experience in the industry

Unique access to sourcing channels of second-hand clothes from

Western Europe

Established multiple channels for global deployment of recycled

clothes

Planning to construct largest recycling facility in SE Europe

DEAL SUMMARY

Co-investor: Innovation Cloud AD

Industry: Clothing recycling

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Pulsio provides book printing outsourcing services to over 400 companies on the French, Swiss and Belgian markets

The company prints and exports over 4000 titles annually and currently holds in excess of 10% of the new titles printed on the French market

Pulsio focuses on small size, new title editions and specializes in hard cover orders

The current investment from BPC will enable to company to extend its reach on other major Western European markets, streamline operations

and increase printing capacity with the aim of becoming the preferred near shore book printing provider to the EU

Work with co-investor on building an online platform for book printing

ordering

Support M&A strategy and execution

Support plan for international expansion

Financial management and control

Improvement of internal processes

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

Leader on a niche market

Outstanding customer service as a major competitive advantage vs.

incumbents

Combination of access to low-cost printing base and understanding

of Western European publishing firm requirements

Strong client base

Strong financials (30%+ CAGR; 30%+ EBITDA margin; no leverage)

DEAL SUMMARY

Co-investor: Bazilisk EOOD

Industry: Business services

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GGE Bulgaria OOD is a company focused on providing energy efficiency solutions in Bulgaria and the region

The Company is run by a team with significant experience throughout the region in implementing custom energy efficiency solutions for a

diversified client base, including hotels, industrials, hospitals, municipalities, shopping malls, and others

GGE’s unique proposition stems from its professional service and ability to invest in energy-efficiency assets on its own balance sheet. This

provides clients with the ability to repay the initial capex investment over a 5-10 year period only with the savings from the reduced energy bills

The investment will enable GGE Bulgaria to establish a portfolio of ESCO contracts

Introduction to multiple clients in Bulgaria

Set up of Bulgarian team

Contacts with banks for project financing

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

Innovative energy efficiency services

Strong team with a combination of engineering, economics, and

marketing/sales experience

Strong pipeline of projects

Solid financial performance

Prospect to become the leading regional energy efficiency company

DEAL SUMMARY

Co-investor: PostScriptum/Mark Crandall

Industry: Energy efficiency services

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Majio develops an HR-matching software, which seeks to address the increasingly complex problem of matching job candidates with available

job offers

The platform can find and match professionals faster, more accurately and cost effectively than existing competitors

Majio’s software enables matching of candidates to job offers based on both technical criteria and candidate cultural traits

In addition, Majio is developing a module to track a candidate’s “job readiness” i.e. his/her online job search activity as a proxy for intention to

seek for a job

Contacts re: product sales and deployment

Strategy and product positioning

Financial management. BlackPeak is de facto CFO for the company

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

Unique technology positioned to take advantage of the shift of

traditional recruitment to online recruitment

Experienced team with successful entrepreneurial experience

DEAL SUMMARY

Co-investor: Bakalov Investment Group; Vasil Terziev

Industry: IT

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Vetcloud provides next generation, cloud-based veterinary practice management system that not only makes day-to-day operations easier, but

also enables managers to see critical business and clinical metrics, and stay in touch with pet owners in a two-way interaction quickly and easily

The company is applying innovative approach to dealing with the ongoing challenges met by veterinary practitioners and is aiming at providing a

comprehensive and user-friendly product currently unmatched by other market players

Initial seed financing was provided by Eleven Accelerator Venture Fund based in Sofia, Bulgaria and Techstars, one of the leading global start

up accelerator funds, based in London

Contacts re: product sales and deployment

Strategy and product positioning

Financial management

COMPANY OVERVIEW

INVESTMENT CONSIDERATIONS

VALUE ADDED

Comprehensive product with advanced features vs. existing

veterinary ERP systems

Better analytics capabilities than existing products in the market

One of the few cloud-based solutions in the industry

Driven team with significant early traction and acceptance to the

Techstarts accelerator in London

DEAL SUMMARY

Co-investor: Angel Investors

Industry: IT

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CO-INVESTORSBlackPeak has already become a trusted partner for a number of high-profile co-investors

PostScriptum Ventures is a venture capital

group which holds a broad portfolio of

investments in start-up and niche situations,

primarily but not exclusively in the energy

sector.

PostScriptum is the founder and largest

shareholder in Continental Wind Partners LLC,

develop of the largest wind farm in Europe -

the 600MW, €1.1 billion Fantanele Wind Farm.

PostScriptum’s Chairman and largest investor

is Mark Crandall. Mr. Crandall co-founded

Morgan Stanley's commodity trading business

in 1984, subsequently he was the head of

Glencore’s oil trading business, and then was

a founder of Trafigura, one of the world’s

largest commodity trading firms.

CEE Equity Partners Ltd is the investment

advisor for the China-CEE Fund with

committed funds of $435m.

The Fund was established by China Exim

Bank in partnership with other institutional

investors from the CEE region to capitalize on

investment opportunities in CEE countries.

The objective of the Fund is to identify and

partner with dynamic businesses and together

contribute to the vibrant growth of the CEE

economies.

In the end of 2015 the China Export Import

Bank dedicated an additional USD 1 billion for

investments in the CEE region during the

Central, Eastern Europe and China Summit

held in Belgrade.

Bakalov Investment Group (BIG) was

established as a special investment fund by

the Bakalov family, with the purpose of

investing and developing high-profile and

innovative product Bulgarian IT and other

companies.

The Bakalov family founded SevOne, a

company providing proprietary solutions in the

area of large network performance monitoring.

Previously, 60% of SevOne was acquired by

Bain Capital Ventures, a premier US venture

fund, for a consideration of ~USD 150 million.

SevOne’s latest fundraising round valued the

company at over $1 billion.

BAKALOV INVESTMENT GROUP

(BIG)

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CORPORATE SOCIAL RESPONSIBILITYBlackPeak proudly supports Boyan Petrov and the Trust for Social Achievement

BlackPeak supported Boyan Petrov’s successful mission to

Manaslu (8,156 m). Boyan is a Bulgarian zoologist and

alpinist. His double climb of Broad Peak (8,047 m) and K2

(8,611 m) within 8 days is a world record. He is also the first

diabetic to climb above 8,000 meters without oxygen.

Boyan Petrov is the first Bulgarian to climb Manaslu. With his

successful climb, he has completed the record that all 8,000+

peaks have been climbed by a Bulgarian.

BlackPeak supports the mission of the Trust for Social

Achievement. The TSA tests and supports innovative,

results-driven approaches that increase self-sufficiency

and improve life outcomes for Bulgaria’s poor, with a focus

on the Roma. Rossen Ivanov sits on the board of the TSA.

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1113 Sofia, Bulgaria I 26, Akademik Metodi Popov Str.

Tel: + 359 2 862 7838 I Tel / Fax: +359 2 962 0588

www.blackpeak-capital.com

Rossen Ivanov

Managing PartnerM: +359 885 046 830

E: ri@blackpeak-capital.com

Ivailo Gospodinov

Managing PartnerM: + 359 889 632 037

E: ig@blackpeak-capital.com

The financing provided hereunder by the Joint European Resources for Micro to

Medium Enterprises (JEREMIE) Initiative is implemented through the Operational

Programme “Development of the competitiveness of the Bulgarian economy” 2007-

2013, co-financed by the European Regional Development Fund and the state budget.

OPERATIONAL PROGRAMME

„Development of the competitiveness

of the Bulgarian economy” 2007-

2013

www.opcompetitiveness.bg

“This publication has been produced with the assistance of Operational Programme „Development of the

competitiveness of the Bulgarian economy” 2007-2013, co-financed by the European Union through the

European Regional Development Fund. The contents of this publication are the sole responsibility of Black

Peak Capital Fund Coöperatief U.A. and can in no way be taken to reflect the position of the European

Union.”