Horizon Capital, a U.S. private-equity firm investing in high growth and export-driven companies in Ukraine and the near region, has announced the final closing of its third fund, $200 million Emerging Europe Growth Fund III LP, far surpassing the $150 million target size announced in 2017.
“EEGF III’s investment strategy is focused on fast-growing, export-oriented companies that leverage Ukraine’s cost competitive platform to generate global revenues primarily in IT, light manufacturing, food and agriculture. The Fund will also pursue investments in select, high-growth domestic market segments, including e-commerce, healthcare and pharma, consumer goods and financial services,” Horizon Capital said in a report on Wednesday.
According to the press release, investments will range from $5-20 million and be made over the next two or three years.
Horizon Capital said that EEGF III has made six investments to date, five in the core sectors driving Ukraine’s export boom and best-positioned to access global markets, including IT, light manufacturing and food and agro. The Fund has backed Genesis, global IT product company; Intellias, fast-growing large IT services company; Yarych, leading biscuits producer; MAIB, No. 1 bank in Moldova, and others.
According to the press release, in what marks the largest private equity fund raised for Ukraine in a decade, Horizon’s EEGF III received strong backing from existing and new investors, attracted by the excellent value, fast growth and abundance of opportunities that Ukraine offers.
“Our fundraising success should send a strong signal that Ukraine offers tremendous rewards for those willing to look past the headlines,” Horizon Capital’s Founding Partner and CEO Lenna Koszarny said.
According to the press release, EEGF III was launched with an anchor commitment from Western NIS Enterprise Fund and attracted investments from the EBRD, FMO, IFC, PROPARCO, DEG, and IFU with over one-third of capital raised from institutional investors, foundations, family offices and other private investors.
Horizon Capital said that the new fund enjoys strong backing from existing investors of Horizon Capital’s prior funds, who contributed over 55% of total commitments. U.S. and Europe-based investors contributed roughly 35% each of total capital raised, with the remainder from other international investors.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a seed capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a seed capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million seed capital). The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.