Horizon Capital has announced the third stage of closing of its new Horizon Capital Growth Fund IV (HCGF IV), which increased its size from $254 million to $298 million, founder and CEO of the company Elena Koszarny wrote on Facebook on Thursday.
“We managed to attract more than 65% of private sector capital from leading institutions, family offices, foundations and other investors, as well as receive a $10 million replenishment from the EBRD, which increases their commitment from $40 million to $50 million,” she said.
She thanked the investors for the opportunity to extend the final stage of the fundraising until December 31, 2023.
“Horizon Capital believes strongly in Ukraine and Moldova, in compelling investment opportunities from world-class founders in our core markets, and in our ability to deliver returns and impact for our investors, as evidenced by our HCGF IV team’s contribution, which now exceeds 4% of the funds raised,” Koszarny added.
As reported, in late April, Horizon Capital announced the closing of the second round of investment and raising $254 million against its target size of $250 million.
Since then, HCGF IV has announced one investment – in the Ukrainian company Preply, a leading global platform for learning foreign languages online, without specifying a specific amount.
IFC, as one of the investors, specified that the fund would invest $10-30 million to acquire minority stakes in 10-15 companies in Ukraine and Moldova with an average capitalization and value of $50-150 million. According to the corporation, HCGF IV is the successor to the $200 million EEGF III, which was formed in 2017, and will follow a similar investment strategy focused on IT services and products, as well as e-commerce, innovative consumer goods and fintech.
Horizon Capital is a large investment company that manages six private equity funds (more than 40 institutional investors) with $1.4 billion in assets, including WNISEF (with $150 million in capital), Emerging Europe Growth Fund (EEGF, $132 million), EEGF II ($370 million) and EEGF III ($200 million), and HCGF II ($258.3 million). The funds have been invested in more than 160 companies employing over 77 thousand people in Ukraine and Moldova.
Kiev-headquartered investment firm Horizon Capital has raised $254 million in a new Horizon Capital Growth Fund IV (HCGF IV, the “Fund”), exceeding its $250 million target, the company said in a statement Friday evening.
“Today Horizon Capital and our esteemed group of investors made history as the first and largest fund raised since the start of a full-scale invasion,” the statement quoted company founder and CEO Olena Kosharnaya as saying from a private signing ceremony with Ukrainian President Volodymyr Zelensky and international investors from the United States, EU and international institutions.
In January this year, she told Interfax-Ukraine news agency that after raising $125 million in the first round of HCGF IV formation in September last year, it was planned to increase its size to $200 million by the end of March, and tentatively by mid-summer to completely close the formation of the fund in the originally planned amount of $250 million.
As noted in the message of the International Finance Corporation (IFC), which contributed $30 million to the fund at the initial stage of its formation, it has increased its contribution to $60 million, becoming the largest participant in the fund.
“We urge other investors to follow IFC’s lead and not let the newspaper headlines fool you. Financing sectors that others are hesitant to invest in can create tremendous investment opportunities with equally significant potential returns,” Kosharna said.
Among the new investors in HCGF IV, according to releases by Horizon Capital and the European Bank for Reconstruction and Development (EBRD), the Société de Promotion et de Participation pour la Coopération Économique (Proparco), the U.S. International Development Finance Corporation (DFC), Swedfund International AB (Swedfund), the Finnish Industrial Cooperation Fund (Finnfund) and the Danish Investment Fund for Developing Countries (IFU).
“In the context of the war with Ukraine, HCGF IV’s ambitions are unprecedented, and we are encouraged by its fundraising success,” Hassan El Khatib, managing director of equities, said in an EBRD release.
In addition to the EBRD, which contributed $40 million to HCGF IV in the first phase, its investors also included Deutsche Investitions-und Entwicklungsgesellschaft (DEG) and its subsidiary KfW Group, the Dutch Enterprise Development Bank (FMO), the Swiss Investment Fund for Emerging Markets (SIFEM) ), Western NIS Enterprise Fund and Zero Gap Fund, formed in collaboration between The Rockefeller Foundation and John D. and Catherine T MacArthur Foundation.
“The fact of exceeding the original ambitious goal of $250 million demonstrates a high level of investor interest in attractive opportunities in high-growth, high-impact technology and export-oriented companies, including those in the light and food processing, innovative consumer products, fintech, etc. sectors,” noted Horizon Capital.
It is also noted that HCGF IV was the first fund in Central and Eastern Europe (CEE) and one of about ten funds in the world to achieve 2X Flagship Fund status, including one of only two that are founded and led by women. The 2X Challenge was launched at the 2018 G7 Summit as a bold commitment by companies to invest in women in the world and promote gender equality in finance.
IFC specified that the fund would invest $10-30 million to acquire minority stakes in 10-15 mid-cap and $50-150 million companies in Ukraine and Moldova. HCGF IV is the $200 million successor to EEGF III, which was completed in 2017, and will follow a similar investment strategy focused on IT services and products as well as e-commerce, innovative consumer products and fintech, according to corporate materials.
IFC recalls having invested in EEGF III and EEGF II (2008), while EBRD was an investor in EEGF III and EEGF II as well as HCGF II.
Horizon Capital is a large investment company managing 6 private equity funds (more than 40 institutional investors) with assets of $1.4 billion, among which are WNISEF ($150 million), Emerging Europe Growth Fund (EEGF, $132 million), EEGF II ($370 million) and EEGF III ($200 million), as well as HCGF II ($258.3 million). The funds of these funds were invested in more than 160 companies, which employed more than 77 thousand people, in Ukraine and Moldova.
Horizon Capital, a U.S. private equity firm investing in high-growth export-oriented companies in Ukraine and the region, has announced the formation of a new Horizon Capital Growth Fund IV, L.P. (HCGF IV), which attracted $125 million in the first stage.
“With the launch of HCGF IV, Horizon Capital achieved an all-time high first stage result, raising 50% of its $250 million goal,” the company said in a statement Monday.
According to him, at the first stage, the Fund was supported by the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), a subsidiary of KfW Group – Deutsche Investitions-und Entwicklungsgesellschaft (DEG), the Dutch Development Bank (FMO), the Swiss Investment Fund for Developing markets (SIFEM), the Western NIS Enterprise Fund, and the Zero Gap Fund (formed in collaboration between The Rockefeller Foundation and the John D. and Catherine T MacArthur Foundation).
The fund will support visionary entrepreneurs leading high-growth technology and export-oriented companies.
The official signing ceremony took place on Monday at the London office of IFC. It was attended by leading representatives of investing institutions, as well as the founder and CEO of Horizon Capital Olena Koszarna and senior partner Vasily Tofan. Ukrainian President Volodymyr Zelensky also joined the fund’s investors for the official signing ceremony with Ukraine via video link.
“We are honored to make history by launching the first fund for Ukraine and Moldova since February 24, and the first fund to support these countries since they received their well-deserved and hard-won EU candidate status in June of this year,” – quoted in a press release by Kosharna.
Earlier, the EBRD and IFC announced that they had approved an investment in HCGF IV of $50 million and $30 million, respectively.
In addition, the Western NIS Enterprise Fund (WNISEF) allocated $10 million as part of the first phase of the fund’s formation.
IFC specified that the fund would invest $10-30 million to acquire minority stakes in 10-15 mid-cap companies worth $50-150 million.
HCGF IV is the successor to the Emerging Europe Growth Fund III (EEGF III, 2017) and will follow a similar investment strategy focused on IT services and products, as well as e-commerce, innovative consumer products and fintech, according to corporate filings.
IFC recalls that it invested in EEGF III and EEGF II (2008), while the EBRD was an investor in EEGF III and EEGF II, as well as HCGF II.
Horizon Capital is a large investment company that manages five private equity funds (more than 40 institutional investors) with assets of $1.1 billion, including WNISEF (with a capital of $150 million), Emerging Europe Growth Fund (EEGF, $132 million), EEGF II ( $370 million) and EEGF III ($200 million) and HCGF II ($258.3 million). The resources of these funds are invested in projects in Ukraine and Moldova.
Cypriot Dealbeta Investments Limited, created by Emerging Europe Growth Fund III (EEGF III) private equity fund managed by Horizon Capital, intends to gain control over the Cypriot company Avroretail Investments Limited, the owner of the Avrora social store network.
According to the website of the Antimonopoly Committee of Ukraine (AMCU), the relevant issue was included in the agenda of the commission’s meeting on June 24.
According to the report, Dealbeta Investments has already entered into a shareholder agreement with the citizens of Ukraine and Avroretail Investments, which contains provisions on concerted actions and restrictive obligations for a period of five years.
According to the state register, Avroretail Investments, registered in March of this year, in April became the owner of Prior Investments LLC (Scherbany village, Poltava region) with Seven A LLC (Poltava) instead of the co-owner of the Avrora chain, Poltava businessman Lev Zhidenko, and Vyhidna Pokupka LLC (Poltava) instead of Zhidenko (who owned 33.74%), Taras Panasenko (56.75%) and Lesia Klymenko (9.49%). Promyslova 9 LLC (Vinnytsia), which belonged to Zhidenko and Panasenko on a parity basis, was also registered for Avroretail.
Vyhidna Pokupka LLC (until May of this year – Lafesta) last year increased its revenue 2.4 times, to UAH 1.011 billion, and net profit – 2.2 times, to UAH 55.9 million.
According to the information on the website of the Avrora chain, its stores operate in almost all regions of Ukraine in the One Dollar Store format.
Creatio, a corporate group providing a leading low-code platform for process management and CRM, which includes Terrasoft in its group, has raised minority investments in the amount of $68 million from Volition Capital Fund IV, L.P. (the United States) and Horizon Capital, the company said on Monday.
As noted in the message, Volition Capital acted as a lead investor, and Horizon Capital acted as a co-investor.
Creatio said that company’s team, management, and strategy, as well as its product vision and willingness to provide an exceptional customer experience, remain unchanged.
The received funds will be used to further accelerate expansion in the global market, strengthen R&D and actively develop the partner ecosystem in 110 countries of the world.
“Now is a critical time for digital and IT leaders to leverage tech and transform their organizations into low-code companies. This investment will allow us to keep building toward the vision of creating the new world, where any company can automate and change their business processes at speed and scale,” co-founder and CEO at Creatio Katherine Kostereva said.
Managing Partner at Volition Capital Sean Cantwell, in turn, said that market category of low-code platforms for process management and CRM has outstanding growth potential.
Creatio notes that according to analysts’ forecasts, the volume of the global market of low-code platforms will reach $187 billion by 2030.
“We are delighted to partner with the Creatio team. Creatio truly has it all to deliver on its ambitious expansion plans – a first-class team committed to its customers, solid execution, and strong product innovation,” Founding Partner and CEO at Horizon Capital Lenna Koszarny said.
As reported, earlier the Antimonopoly Committee of Ukraine gave permission to change the ownership structure of the Creatio Group and the entry of Volition Capital Fund as a minority shareholder.
The Creatio partner network numbers 700 or more organizations around the world. One of the key players in the global low-code, BPM and CRM market is Terrasoft, known for its Creatio (formerly bpm’online) software products. Terrasoft is part of the Creatio international group of companies, which employs 600 or more people, and clients are represented in 100 or more countries.
Volition Capital is a joint-stock company investing in high-potential technology companies owned by their founders.
CREATIO, HORIZON CAPITAL, INVESTMENTS, US VOLITION CAPITAL FUND
Horizon Capital investment company to increase assets in Ukraine and Moldova to over $1 bln
DAVOS. Jan 24 (Interfax-Ukraine) – Horizon Capital, an investment company currently managing assets in Ukraine and Moldova in the amount of about $850 million, intends to exceed the asset level under management of $1 billion in the near future, Lenna Koszarny, the CEO of the company, has said. “Our main plans are as follows: we will manage more than $1 billion in the near future. These are our direct investments, co-investor funds and debt financing,” she told Interfax-Ukraine on the sidelines of the Ukrainian House, organized by the Pinchuk Foundation, WNISEF and Horizon Capital in Davos.
She said that Emerging Europe Growth Fund III (EEGF III) fund, worth $200 million, the formation of which was completed a year ago, has already made nine investments in Ukraine.
“And we are closing two more deals: the tenth and 11th investments are companies that are developing rapidly,” she said, without specifying the details before the completion of transactions.
She emphasized that the company intends to remain the leader in its sector.
Horizon Capital was founded in 2006 by four partners who began their cooperation with Western NIS Enterprise Fund (WNISEF), an investment fund created for the funds of the U.S. government in 1994 with a capital of $150 million for Ukraine and Moldova. Currently, the major shareholder and CEO of Horizon Capital is Koszarny. The company has offices in Kyiv and Chicago.
