A bevy of international financial institutions have agreed to back Horizon Capital Growth Fund IV (HCGF IV), a fund aiming to support tech and export-oriented small and medium-sized enterprises in Ukraine and Moldova.
The focus industries include the IT sector, e-commerce, innovative consumer goods and financial technologies.
These institutions included the EBRD (which has committed “up to $40 million” at this stage) and the IFC ($30 million) as well as Deutsche Investitions und Entwicklungsgesellschaft (DEG), the Dutch Entrepreneurial Development Bank (FMO), the Swiss Investment Fund for Emerging Markets, the Western NIS Enterprise Fund (WNISEF) and the Zero Gap Fund.
Aiming to raise up to $250 million, HCGF IV will make growth equity investments with tickets ranging $10 million to $ 30million. The fund is managed by Horizon Capital, a leading private-equity manager in Ukraine and Moldova.
“We welcome Horizon’s new fund, which will have an important catalytic effect on the Ukrainian and regional market,” said Hassan El Khatib, EBRD Managing Director, Equity, at the signing ceremony which took place today at the International Finance Corporation’s (IFC) London office.
“The fund will not only improve the resilience of private capital markets in the region by developing private equity as an alternative funding source but also boost inclusion by offering support to businesses affected by the war. Through this investment, the EBRD and its international partners are effectively bridging a financing gap caused by adverse market conditions, by bringing in a private equity fund to add to the pool of financing available.”
Sources: EBRD, Ukraine Business News