EIB-managed EU4U fund to contribute 25 mln euros to Ukraine's Horizon Capital HCGF IV
MOSCOW. Dec 6 (Interfax) - The Contributors' Committee of the EU for Ukraine Fund managed by the European Investment Bank has approved a 25-million-euro investment in Horizon Capital Growth Fund IV L.P. (HCGF IV) of Ukraine's Horizon Capital investment company.
"This funding primarily targets asset-light, human capital-rich, export-oriented technology companies, building on the region's rich engineering talent base," Ukrainian media reported citing a statement on the EIB's website.
The 25-million-euro investment in HCGF IV marks the first project of the EU for Ukraine Fund, it said.
HCGF IV is raising at least 274 million euros to make growth equity investments, focus particularly on tech and export-oriented small and medium-sized enterprises in Ukraine and Moldova, it said.
It seeks to enhance the market presence of businesses in those countries and support their expansion efforts, particularly in sectors such as IT services and products, e-commerce, innovative retail and consumer goods, and fintech, it said.
The EIB set up the EU for Ukraine Fund in spring 2023 to rapidly address urgent needs and sustain economic stability in Ukraine, its primary aim being to support public and private projects, mainly in municipal infrastructure and access to finance for Ukrainian entrepreneurs. Eighteen EU member states have currently committed over 400 million euros thus far.
Horizon Capital is a major investment company managing six private equity funds of over 40 institutional investors, with assets exceeding $1.4 billion, including WNISEF with capital of $150 million; Emerging Europe Growth Fund (EEGF) with $132 million; EEGF II with $370 million; EEGF III with $200 million; as well as HCGF II, with $258.3 million. The funds invest in over 160 companies employing over 77,000 people in Ukraine and Moldova.
In September, the company announced the third phase of closing HCGF IV, increasing its size to $298 million from $254 million.