Last week Horizon Capital, a US-registered, Kyiv (Kiev)-based fund manager, announced that it closed a new private equity fund. Dubbed ‘Emerging Europe Growth Fund III’ (EEGF III), the fund has attracted as much as $200 million, a hard cap which is “far surpassing the $150 million target.”
The completion of the fundraising campaign marks “the largest private equity fund raised for Ukraine in a decade,” according to Horizon.
Horizon says that around 70% of total capital raised were contributed by US and Europe-based investors, with the remainder coming from other international investors.
Both existing EEGF investors and new investors were “attracted by the excellent value, fast growth and abundance of opportunities that Ukraine offers,” according to Horizon’s press release. With an anchor commitment from WNISEF, a USAID-backed enterprise fund, EEGF III has been backed by institutional investors, foundations, family offices and other private investors. Among the backers are the EBRD, FMO, IFC, PROPARCO, DEG and IFU.
From IT, to manufacturing, to food industries
The new fund invests in “fast-growing, export-oriented companies that leverage Ukraine’s cost competitive platform to generate global revenues.” The targeted sectors include primarily IT, light manufacturing, food and agriculture. EEGF III also targets “select, high-growth domestic market segments” – from e-commerce, to healthcare and pharma, to consumer goods and financial services.
Horizon expects the investments to be made “over the next 2-3 years”, ranging from $5 million to $20 million.
The fund has already made six investments to date, covering IT, light manufacturing as well as the food and agro sectors. Thus, in the Ukrainian IT sector, EEGF III has backed Genesis, a company which develops various Internet and mobile projects, and Intellias, a major IT service provider, as reported earlier by Ukraine Digital News.
Horizon Capital originates and manages investments in mid-cap companies in Ukraine and the region. Currently, Horizon Capital manages three funds, Emerging Europe Growth Fund, Emerging Europe Growth Fund II, and Western NIS Enterprise Fund, with over $850 million under management. The firm claims that its Ukraine-focused funds have invested “over $650 million in 140 companies employing over 46,000 people.”
