Business news from Ukraine

IT COMPANY CREATIO RAISES $68 MLN INVESTMENTS FROM US VOLITION CAPITAL FUND AND HORIZON CAPITAL

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.

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HORIZON CAPITAL INVESTMENT COMPANY TO INCREASE ASSETS IN UKRAINE AND MOLDOVA TO OVER $1 BLN

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.

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HORIZON CAPITAL PLANS TO ACQUIRE CONTROLLING STAKE IN LEADING PRODUCER OF SMART SECURITY SYSTEMS IN UKRAINE AJAX CYPRUS

Cypriot Dealbeta Investments Limited, created by Emerging Europe Growth Fund III (EEGF III) managed by Horizon Capital, jointly with an individual-citizen of Ukraine, plan to acquire a controlling stake in Cypriot Ajax Cyprus Holding Ltd., a leading producer of smart security systems in Ukraine. According to a website of the Antimonopoly Committee of Ukraine (AMCU), the committee will consider an issue of acquisition of Ajax Systems Cyprus Holding Ltd by Dealbeta Investments at its meeting on September 12, 2019.

Besides, the committee will consider an issue of acquisition of Ajax Systems trading DMCC (UAE) by Dealbeta Investments jointly with an individual-citizen of Ukraine.

As reported, Horizon Capital’s Emerging Europe Growth Fund III, LP (EEGF III) has acquired a minority stake in Ajax Systems for $10 million.

In January 2019, Horizon Capital announced that Horizon Capital created the largest equity fund in Ukraine over the past 10 years: EEGF III with $200 million.

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.

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HORIZON CAPITAL BECOMES SHAREHOLDER IN UKRAINIAN DOBROBUT MEDICAL CHAIN

Emerging Europe Growth Fund III, LP (EEGF III) of Horizon Capital has acquired a minority stake in a leading private medical chain in Kyiv city and region – Dobrobut, the company reported on Wednesday.
“Our plans require investment and expertise. Horizon Capital’s capital, knowledge and experience are pivotal in supporting our ambitious strategic plans,” Oleg Kalashnikov, CEO of Dobrobut, said.
According to him, in the nearest future Dobrobut will open another medical facility in Kyiv, 10,000 sq m, which will offer top-notch surgery, oncology and cardiology services.
Horizon Capital’s Founding Partner and CEO Lenna Koszarny said that Horizon Capital’s entry into this strategic sector, together with the backing of our global institutional investors, will play a significant role in the development of healthcare in Ukraine, as it brings capital, transparency, world-class equipment and best practices to this industry.
The participants in the transaction do not disclose its terms, however, Kalashnikov said that “it is not about selling part of the business, this deal is about increasing capital and supporting growth.”
“We have ambitious plans to further develop the company, including opening new clinics, expanding the scope of medical services offered and mastering new skills,” he said.
At the end of March, the Antimonopoly Committee of Ukraine reported that Cypriot Dealbeta Investments Limited, created by Emerging Europe Growth Fund III (EEGF III) managed by Horizon Capital, jointly with an individual-citizen of Ukraine, plan to acquire a controlling stake in Cypriot Satumco Limited, the owner of Dobrobut.
In January 2019, The Antimonopoly Committee of Ukraine began probing into the acquisition by Cypriot-based Satumco Limited, the owner of Kyiv’s largest private medical chain Dobrobut, of the Boris Clinic, one of the oldest private clinics in Kyiv.
The Dobrobut Medical Center was established in 2001 and previously included branches in Donetsk and Yalta, but now its assets are located in Kyiv and it grew to a large chain. In particular, it currently includes an emergency station, children’s clinics on the right and left banks of Kyiv, clinics for adults on the right and left banks, a hospital for adults and children, pediatric and adult surgery departments, a medical diagnostic center, the Dobrobut Oncology Center, as well as the center of clinical neurology, neurorehabilitation and rehabilitation medicine.
In January 2018, a group of investors from the Concorde Capital investment company and shareholder in the Luxoptica chain of optical stores Oleh Kalashnikov acquired 80% of the Dobrobut chain from UBG (both based in Kyiv). The owner of the UBG corporation was MP Ruslan Demchak (Bloc of Petro Poroshenko parliamentary faction), who retained a 20% stake in the chain.
Currently, according to the public register, Satumco Limited owns 99% in many companies of the chain (Dobrobut Emergency Aid LLC which revenue in 2017 was UAH 38.5 million, Dobrobut Polyclinic Center with UAH 347.8 million, Dobrobut Statsionar Center (in-patient facility) with UAH 48.9 million, Dobrobut Medical Center for Children with UAH 73.6 million, Dobrobut Dytynstvo (Childhood) Center with UAH 22.2 million) and its beneficiaries are owner and head of Concorde Capital Ihor Mazepa and Luxoptica shareholder Oleg Kalashnikov.
In January 2019, Horizon Capital announced that Horizon Capital created the largest equity fund in Ukraine over the past 10 years: EEGF III with $200 million.
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.

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HORIZON CAPITAL RAISES $200 MLN FOR EMERGING EUROPE GROWTH FUND TO INVEST IN UKRAINE, MOLDOVA

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.

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HORIZON CAPITAL PLANS TO INVEST UP TO $200 MLN IN UKRAINE

Horizon Capital Group, which manages $800 million, plans to invest up to $200 million in Ukraine over the next three or five years, Denys Tafintsev, a senior partner and a member of the Horizon Capital investment committee, has said at the Kyiv International Economic Forum. “Ukraine has a relatively stable macroeconomic situation and poorly priced assets: six years ago they were three times more expensive,” he described the current situation. Tafintsev noted that large international investors are unlikely to come to Ukraine on the eve and during the presidential and parliamentary elections scheduled for 2019.
“This is a good opportunity for us as a domestic fund,” he said. According to him, among the company’s industry priorities are IT, processing, export sectors, and light industry.
Tafintsev noted that Horizon Capital invests in share capital, avoiding companies with large debts.
He told Interfax-Ukraine that the named volume of investments is planned not only at the expense of the new investment fund Horizon Capital is currently creating, but all the company’s investments.

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