Horizon Capital plans to invest up to USD 200 million into Ukraine

Horizon Capital Group, which manages USD 800 million, intends to invest up to USD 200 million in Ukraine over the next 3-5 years. 

It was reported by senior partner and member of Horizon Capital investment committee Denys Tafintsev during Kyiv International Economic Forum. 

"Ukraine has a relatively stable macroeconomic situation and poorly priced assets: six years ago they were three times more expensive," Tafintsev described the current situation.

He noted that large international investors are unlikely to come to Ukraine just before and during the presidential and parliamentary elections scheduled for 2019. "This is a good opportunity for us as a domestic fund," Horizon Capital representative said.

As to him, among the company's industry priorities are IT, processing, export sectors, and light industry. Tafintsev noted that Horizon Capital invests in equity capital avoiding companies with large debts.

Tafintsev specified that the mentioned 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, according to Interfax-Ukraine. 

Horizon Capital was founded in 2006 by four founding partners who began their collaboration with Western NIS Enterprise Fund (WNISEF), a USD 150 million focused on Ukraine and Moldova and established in 1994. Lena Koszarny is currently a major shareholder and CEO in Horizon Capital. The company's offices are situated in Kyiv and Chicago.

Horizon Capital manages direct investments funds (more than 40 institutional investors) with more than USD 800 million among which are  WNISEF, EEGF (was founded in 2006 with USD 132 million capital) and EEGF II (was founded in 2008 with USD 370 million capital). The mentioned funds invest in projects in Ukraine, Moldova and Belarus.

In summer 2016, U.S. Overseas Private Investment Corporation (OPIC) reported on creating the fund EEGF III (Delaware, USA) with USD 150 million capital. 

The fund will focus on investments in export-oriented, fast-growing, mid-size companies in Ukraine and Moldova with the potential to grow from local to regional market leaders. The fund will primarily target minority stakes in high growth Ukrainian companies. It may also invest in early-stage, buyout and privatization opportunities as they arise.

OPIC informed on allocation of up to USD 37.5 million to EEGF III. In a year, IFC from WB Group informed on readiness to invest up to USD 15 million, the EBRD - USD 30 million. Additionally, co-ivestors of new fund are Dutch development bank FMO and German investment corporation DEG, and WNISEF. In particularly, in June 2017 and April 2018, FMO invested, by two tranches, USD 17.5 million in EEGF III Netherlands, L.P.

According to SEC data, new fund Emerging Europe Growth Fund III, L.P. (Delaware) attracted USD 109.72 million as on the beginning of July 2018.