news - FMO invests USD 20 mln in the first fund raised for Ukraine since February

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FMO invests USD 20 mln in the first fund raised for Ukraine since February

September 26, 2022

FMO announces today a new USD 20 million commitment to Horizon Capital Growth Fund IV (HCGF IV), managed by Horizon Capital, a leading private-equity firm investing in fast-growing tech and export-oriented companies in Ukraine and the near region. HCGF IV strategy will be focused on growth equity investments, in tech and export-oriented small and medium-sized enterprises (SMEs) in Ukraine and Moldova. With the commitment of FMO and other first close investors, HCGF IV has achieved a first closing of USD 125 million, exceeding its USD 100 million initial goal, and reaching 50% of HCGF IV’s target size, aiming to raise the Fund in full within one year.

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FMO has committed up to USD 20 million, from Dutch state-owned funds MASSIF and Building Prospects (USD 7.5 m each) and FMO’s own balance sheet (USD 5 m). The investment was signed today at the International Finance Corporation’s (IFC) London office. The fund’s first-close investors, alongside FMO, include the European Bank for Reconstruction and Development (“EBRD”), the International Finance Corporation (“IFC”),  Deutsche Investitions- und Entwicklungsgesellschaft (“DEG”) and a subsidiary of KfW Group, the Swiss Investment Fund for Emerging Markets (SIFEM), the Western NIS Enterprise Fund, and the Zero Gap Fund, an impact investing collaboration between The Rockefeller Foundation and the John D. and Catherine T. MacArthur Foundation.

The Russian invasion of Ukraine has hugely disrupted the Ukrainian economy. Some businesses have ceased operations, while others have been forced to adapt to a new reality of logistical disruptions, fuel deficits, relocated production facilities and staff, tighter currency controls and shortages of finance. IT/tech companies have proven to be resilient in this crisis. They continue to provide good quality jobs for young people. Lastly, they generate substantial inflows of hard currency earnings that are vital to Ukraine’s economy.

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Jaap Reinking, Director Private Equity at FMO: ,,We are proud to support our client Horizon to empower local small and medium sized entrepreneurs, in times of unprecedented challenges for the Ukraine economy. Ukrainian companies have demonstrated great resilience and especially tech-focused SMEs have proven their importance to the economy since the start of the war.’’ 

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“We are making history together today in launching HCGF IV, the first fund raised for Ukraine since February 24th, demonstrating global unity in support of Ukraine, including institutions coming together to provide investment capital necessary for growth, renewal and revitalization”, said Lenna Koszarny, Horizon Capital’s Founding Partner and CEO. “Horizon Capital dedicates this fund to the heroic people of Ukraine who have inspired the world with their bravery, resilience, and commitment to a European future. We thank FMO and all first close investors for taking this bold step alongside our team of dedicated professionals, ensuring that innovative entrepreneurs from Ukraine and Moldova have access to capital to fuel growth, to contribute to the renewal and revitalization of their countries, to create well-paying jobs, pay taxes, be socially responsible, and provide a strong signal to others that the time to invest is now. We are confident that this historic fund will be a resounding success, delivering both returns and impact.”

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HCGF IV will invest an average of USD 10 to 30 million, primarily in tech and export-oriented companies, led by visionary entrepreneurs with a proven track record of leveraging competitive platforms to succeed globally, building on the success of their vintage 2017 USD 200 million fund, whose strong results are driven by the stellar performance of the underlying companies and their talented founders and management teams.

About Horizon Capital
Horizon Capital (https://horizoncapital.com.ua/) is the leading private equity firm in Ukraine, backed by over 40 institutional investors with over $1.2 billion under management in six funds. Horizon Capital is a value-added investor, backing visionary entrepreneurs leading transformational businesses in Ukraine and the near region.

 

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