The International Finance Corporation (IFC) is considering an equity investment of up to 20 million euros ($22.6 million) in a Southeast Europe-focused private equity fund managed by BlackPeak, as development finance institutions look to channel more institutional capital into underserved emerging European markets.
The proposed investment would support BlackPeak SEE Growth Equity Fund II SCSp, also referred to as BlackPeak III, a Luxembourg-domiciled private equity vehicle targeting total commitments of 150 million euros, according to an IFC disclosure.
The fund plans to invest mainly in small and medium-sized enterprises and lower mid-market companies across Bulgaria, Romania, Serbia, Croatia and other Southeast European markets.
It will pursue a generalist strategy focused on sectors including information technology, niche manufacturing, business services, retail and consumer industries — segments where many companies remain constrained by limited access to long-term growth capital.
IFC said its proposed commitment would be critical in helping the fund reach its first close and final target size, reflecting the continued difficulty of fundraising in Southeast Europe.
Fundraising activity in Southeast Europe accounted for only about 6% of Europe’s overall fundraising between 2020 and 2024, IFC said, highlighting the region’s relatively shallow institutional private capital market.
The World Bank Group member said the project is expected to improve access to private equity financing for SMEs while supporting value creation and expansion opportunities for portfolio companies, including women-led businesses.
Beyond financing individual companies, IFC framed the investment as part of a broader market-building effort aimed at strengthening local private equity ecosystems and encouraging greater institutional investor participation in future regional funds.
BlackPeak is an existing IFC client. IFC and other development finance institutions backed BlackPeak’s previous fund, launched in 2021, helping the manager evolve into a regional fund platform.
Under IFC’s environmental and social framework, the fund has been classified as FI-2, meaning potential environmental and social risks are considered low to medium. The fund will exclude coal-related activities, radioactive materials, involuntary resettlement, and higher-risk projects with significant environmental, community, biodiversity, cultural heritage, labour or occupational safety impacts.
As part of the proposed investment conditions, BlackPeak will be required to strengthen its environmental and social management system, improve tools for managing gender-based violence risks, update grievance procedures, maintain ESG capacity, and provide due diligence reports for the fund’s first three investments.
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