Project detail - Horizon Capital Catalyst Fund SCSp

Who is our prospective customer?

Horizon Capital Catalyst Fund SCSp (the “Fund”, “HCCF”) is a private equity fund investing in Ukraine, managed by Horizon Capital (the “Fund Manager”). FMO has an existing relationship with Horizon Capital, having invested in all five private equity funds managed and established to date by Horizon Capital (Emerging Europe Growth Fund I, II & III and Horizon Capital Growth Fund II & IV). FMO intends to invest EUR 10-15 million at HCCF’s first close.

What is our funding objective?

HCCF has been established to invest in asset-heavy, domestic-oriented companies and projects across various themes, including digital infrastructure, energy, construction materials, and select industrial sectors. The Fund intends to catalyze significant investment by partnering with foreign strategics and funds seeking a local partner, as well as with Ukrainian founders and operators seeking a value-add partner. The funding objective is to support the Fund in reaching its target size of EUR 300 million.

Why do we want to fund this investment?

The Fund’s target sectors form the backbone of Ukraine’s economy and require substantial, near-term investment to support the country’s reconstruction. By participating in the Fund’s first closing, FMO will send a positive signal to other potential limited partners. In doing so, FMO will play a catalyzing role in helping the Fund attract additional investors—both DFIs and private investors—and achieve its target size and objectives. Through its commitment, FMO will support the Fund Manager in contributing to Ukraine’s long-term economic recovery and in ensuring that local businesses and projects have access to growth capital, enabling them to remain resilient, agile, and capable of thriving despite the ongoing war.

What is the Environmental and Social categorization rationale?

The investment has been categorized as E&S Category A given the Fund’s focus on asset-heavy sectors and elevated contextual risks in Ukraine that could heighten the overall risk exposure. With exposure to sectors such as renewable energy, digital infrastructure, and construction materials, most investees will trigger risks across IFC Performance Standards (PS) 1 to 4 with additional human rights concerns due to martial law. PS5-Involuntary resettlement and PS6-Biodiversity may apply given legacy war-related issues. Specific war-related risks, include supply chain disruptions, health & safety (including emergency response), militarized security, discrimination toward vulnerable groups, diminished regulatory oversight, limited civil liberties, and weakened labor protections. Horizon has established a well-aligned E&S Management System based on IFC PS, which also addresses country contextual risks. The Fund Manager has also demonstrated a proactive approach by implementing robust measures for employee wellbeing, health and safety, and emergency preparedness to address war-related risks. FMO and the DFI limited partner group plans to support the Fund in enhancing systems and capabilities to maintain best practices and manage contextual risks throughout the Fund’s lifecycle, both at the fund and investee levels.