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.
European Union High Representative for Foreign Affairs and Security Policy Josep Borrel said it is necessary to attract private investment both from Ukraine itself and from the European Union to rebuild post-war Ukraine, for which favorable conditions must be created.
He said this on Thursday in Stockholm at the end of a meeting of the European Council at the level of development ministers. Deputy Prime Minister and Minister of Development of Communities, Territories and Infrastructure of Ukraine Oleksandr Kurbakov also attended the meeting by video link.
“It is clear that we must prepare ourselves for recovery and reconstruction, which go hand in hand with the process of reform on the way to European membership. These processes reinforce each other. Ukraine needs to move forward on fighting corruption, reforming the judicial system, which will increase the efficiency of spending in Ukraine and create a predictable and fair economic environment to attract private investors. This must be mobilized to ensure that the private sector can play a key role for civil society and local authorities. We must use our funding to attract private investment, both from Ukraine and the EU,” Borrell said of his vision.
The EU high representative stated that the reconstruction of Ukraine will be “the next huge task.” “And the longer this war goes on, the more destruction there will be and the more work we will have to do to support Ukraine in its reconstruction. It is also very clear that Russia must make up for the incredible destruction and loss it has caused Ukraine and its people. It must pay the price for rebuilding Ukraine. To do this, we are working on how we can use and mobilize frozen Russian assets in accordance with international law,” he added.
Borrell recalled that during Wednesday’s informal meeting of defense ministers, defense chiefs discussed military support for Ukraine and today with development ministers discussed rebuilding Ukraine. “Those two things go together. We have to help Ukraine to avoid destruction and we have to support Ukraine to rebuild it. But the less destruction, the better for reconstruction efforts. So we have to send generators to Ukraine to produce electricity and we have to send missiles to prevent Russia from destroying them,” he detailed.
Referring to the participation in the meeting of Deputy Prime Minister, Minister of Development of Communities, Territories and Infrastructure of Ukraine Kurbakov, the High Representative said that he “spoke about his vision of priorities.” “It is absolutely clear that we must continue to support Ukraine to win this war,” Borrell stressed.
U.S. President Joe Biden’s administration is preparing a new program that could prohibit investments in certain industries in China, The Wall Street Journal wrote.
Such a measure would be another step by the United States aimed at preserving technological advantages in the face of growing competition between the world’s two largest economies, the article noted.
The Treasury and Commerce departments said in reports to lawmakers that they are considering a new system to regulate U.S. foreign investment in advanced technology that could pose a national security threat. The documents, seen by the WSJ, say the president’s administration could prohibit certain investments and would also gather information on other investments. Specific technology sectors are not listed in the reports, but the focus will be on areas that could improve military capabilities.
The new program will cover private and venture capital investments in the development of advanced semiconductors, quantum computing and some forms of artificial intelligence, sources said. U.S. officials want to prevent U.S. investors from providing funding and expertise to Chinese companies that could, for example, improve Beijing’s speed and accuracy in military decision-making.
The U.S. government has long closely monitored foreign investment in China’s economy, in some cases banning it through an interagency group called the Committee on Foreign Investment in the United States. But the rules governing U.S. investment overseas will be a new step in a broader effort by the Biden administration to prevent China from developing technology that U.S. authorities believe could pose a national security threat. Last year, the United States imposed new restrictions on exports of semiconductors and chip-making equipment to slow China’s military advancement, the WSJ notes.
At the same time, administration officials are reaching out to close G7 allies to gain their support for the concept of limiting investment in China.
One of the world’s largest venture capital firms, Sequoia Capital, has already begun vetting new investments in Chinese semiconductor or quantum computing companies in preparation for new U.S. rules, according to the article.
In more details the situation in the economy of Ukraine and the world was analyzed by the analytical center “Club of experts“, the video is available at the link
Projects of modernization to the European standard of the track from the border to Lviv and Kovel are described in the National Transport Strategy and require more than $ 75 million investment, said former Deputy Minister of Infrastructure of Ukraine for European Integration Viktor Dovgan to Interfax-Ukraine.
As reported, Prime Minister Denis Shmygal at a government meeting on Tuesday said that Ukraine will begin to gradually move to the European track to connect the Ukrainian railway with the EU, first connecting large hubs and large cities, and then gradually expanding across the country .
“Investments in such a large-scale project are unlikely, because 1 km of the European road – 1 million euros plus rolling stock. It is necessary to make short connections Lviv, Mukachevo, Chernivtsi and transfer. It is important to take an action plan of the National Transport Strategy. it is unrealistic to make a European track to Kyiv or Odessa at this stage, “Dovgan commented.
It will be recalled that in the Investment Atlas published by the Cabinet of Ministers at the end of 2020, two potential sections with the European standard of 1435 mm gauge were presented: Sknilov-Mostiska and Kovel-Yagodin-State Border.
The estimated cost of the Sknilov-Mostiska modernization project is $ 20.8 million, Kovel – Yagodin – State Border – $ 54.2 million.
In February 2022, Lviv OVA announced that within the framework of the presidential program “Big Construction” this year work will begin on the restoration of the 8-km Goskolitsa-Rava-Russkaya Eurorail, which they intend to implement within two years.
BORDER, EUROPEAN RAILWAY TRACK, INVESTMENT, LVIV, MODERNIZATION, КОВЕЛЬ
Consumer goods giant Unilever has said that the company continues to condemn the war in Ukraine, has stopped business operations in Ukraine and has suspended all imports and exports of our products into and out of Russia.
“We continue to condemn the war in Ukraine as a brutal and senseless act by the Russian state. Our business operations in Ukraine have stopped and we are now fully focused on ensuring the safety of our Ukrainian employees and their families, including helping with their evacuation where necessary, and providing additional financial support,” Unilever CEO Alan Jope said in a statement posted on the company’s website.
He said that the company has suspended all imports and exports of our products into and out of Russia, and we will stop all media and advertising spend.
“We will not invest any further capital into the country nor will we profit from our presence in Russia. We will continue to supply our everyday essential food and hygiene products made in Russia to people in the country. We will keep this under close review,” he said.
“We join calls for an end to this war and hope that peace, human rights, and the international rule of law will prevail,” he said.
Unilever brands include Lipton, Dove, Vaseline, Cif, Signal, Domestos, Rexona AXE, Chistaya Liniya, Barkhatnye Ruchki and Inmarko.
In Ukraine, the company has a tea factory in Hostomel near Kyiv, which is the scene of heavy fighting.
In Russia, it has ice cream plants in Tula Region and Omsk, tea, cosmetics and household cleaner production facilities in St. Petersburg, and a cosmetics factory in Yekaterinburg.
Prometey Group of Companies, which owns 29 granaries in Ukraine with a total storage capacity of 1.7 million tonnes of agricultural crops, intends to purchase four-six more elevators this year, the company’s website reported on Monday.
“In the future, Prometey Group intends to take a leading position in terms of one-time storage capacity and become the largest latifundist in Ukraine. This year, the company aims to purchase four-six more elevators,” the grain trader said in a statement.
It is noted that in 2021, Prometey acquired four granaries, which made it possible to increase the elevator capacity of the group of companies by 210,000 tonnes.
Prometey provides services for the storage, processing and logistics of grain and leguminous crops on the basis of 29 elevators in Mykolaiv, Kirovohrad, Kyiv, Khmelnytsky, Zaporizhia, Sumy, Odesa, Kherson and Dnipropetrovsk regions.
