International financial institutions commit record $254 million to Ukraine-based PE fund

Horizon Capital, a leading private-equity manager in Ukraine and Moldova, announced today the interim closing of Horizon Capital Growth Fund IV (HCGF IV). The new fund has received $254 million in commitments — above the initial $250 million target — from a bevy of financial institutions.

Ukrainian president Volodymyr Zelenskyy personally attended the signing ceremony today held in Kyiv.

Initial backers include the IFC, the EBRD, German DEG, Dutch FMO, Swiss SIFEM and USAID-backed Western NIS Enterprise Fund, as well as Zero Gap Fund, an impact investing vehicle backed by the Rockefeller Foundation and the MacArthur Foundation.

New backers joining HCGF IV at this interim closing include the US International Development Finance Corporation (DFC), Finnish Finnfund, Danish IFU, French Proparco, and Swede Swedfund. 

Under plans, HCGF IV will support “high-growth, high-impact tech and export-oriented companies” in Ukraine and Moldova in the fields of “light manufacturing, food processing, innovative consumer goods, fintech” and others. 

Horizon Capital pledges to “contribute to Ukraine’s ongoing resilience, including supporting growth and job creation, expanding the tax base, increasing availability of capital for SMEs, and promoting gender equality.”

“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,” stated Hassan El Khatib, EBRD Managing Director, Equity. 

“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,” he added.

As it announced its interim closing, HCGF IV was awarded the 2X Flagship Fund distinction a first in Central and Eastern Europe in recognition of efforts or commitments to improve gender diversity in the investment industry and to build “gender-smart” portfolios.

Horizon Capital touts itself as “the leading private equity firm in Emerging Europe with $1.4 billion in assets from investors with a capital base exceeding $630 billion, raising over $700 million in growth capital to back visionary entrepreneurs.” Its funds have already backed more than 160 companies in the region.

Topics: Venture/Private equity, Finance, International, News
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