HORIZON CAPITAL GROWTH FUND II, L.PStatus: Approved investment
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Who is our customer
Horizon Capital Growth Fund II, L.P. (the “Fund”, “HCGF II”) is a private equity fund investing in Ukraine-based assets, managed by Horizon Capital. Starting with HCGF II, funds managed by the firm carry the Horizon Capital brand name. FMO has a longstanding relationship with Horizon Capital, having invested in all three of the private equity funds managed by Horizon Capital and established to date (Emerging Europe Growth Fund I, II & III).
What is our funding objective?
The funding objective is to support the first such secondary transaction in Ukraine to provide existing investors, including FMO which made a $20 million commitment to EEGF II in 2008, the opportunity to continue to back the portfolio for a period of up to 5 years plus two one-year extensions. The portfolio continues to be managed by Horizon Capital and benefits from significant additional follow-on capital raised during this process.
Why do we fund this investment?
As a result of the GP-led secondary, FMO has elected to maintain its exposure to the underlying assets and commit a portion of new capital for follow-on investments. Through this reinvestment, FMO continues to support Horizon Capital’s development, to back the introduction of innovative transactions in the markets in which it operates, and to contribute to economic growth in Ukraine.
What is the Environmental and Social categorization rationale?
Based on the Fund’s existing portfolio, HCGF II has been categorized as Category B in accordance with FMO’s Sustainability Policy. The actual E&S risks vary from investment to investment, but key issues are mainly related to IFC PS 1, 2 and 3. Horizon Capital has dedicated ESG staff and a high quality and well-functioning ESMS in place based on IFC PS, which has been established with support from an external consultant. For all assets, compliance with local regulation and with IFC PS framework is required. FMO continues to engage frequently with Horizon Capital to monitor and provide feedback on the Fund’s E&S performance.
- Europe & Central Asia
- Infrastructure, Manufacturing and Services
- Effective date
- Total FMO financing
- USD 13.90 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)