Horizon Capital, a private-equity firm, announced on Monday, September 26, that it has launched a new fund, Horizon Capital Growth Fund IV (HCGF IV), raising $125M (approximately €129M) in its first close.
The firm has already reached 50 per cent of its $250M (approximately €258M) target, making it the highest first close result in the firm’s history.
The Fund’s first closing was backed by various parties, including:
- European Bank for Reconstruction and Development (“EBRD”)
- International Finance Corporation (“IFC”)
- Deutsche Investitions- und Entwicklungsgesellschaft (“DEG”) and a subsidiary of KfW Group
- Dutch Entrepreneurial Development Bank (“FMO”),
- Swiss Investment Fund for Emerging Markets (“SIFEM”)
- Western NIS Enterprise Fund
- Zero Gap Fund (an impact investing collaboration between The Rockefeller Foundation and the John D. and Catherine T. MacArthur Foundation.)
Volodymyr Zelenskyy, President of Ukraine, participated in the ceremony of signing the document on participation in financing the Horizon Capital Growth Fund IV through video conference. The official signing ceremony took place today at IFC’s London office.
HCGF IV fund
The HCGF IV fund will support Ukrainian entrepreneurs who lead fast-growing technology and export-oriented companies. It is the first largest fund for Ukraine established since February 24, the day Russia started its invasion of Ukraine, and the first such structure that will support the state after obtaining the status of a candidate for EU membership in June of this year.
President Volodymyr Zelenskyy thanked the investors for their attention to Ukraine and support.
“The struggle for freedom is taking place not only at the front. Thanks to the bravery of our heroes at the front, there are opportunities for other fronts to hold on as well – first of all, this is the economic front. And it is an extremely good signal for the economic front that such esteemed investment players support our state, demonstrate an interest in Ukraine,” President Volodymyr Zelenskyy says.
The President also emphasised Ukraine’s significant potential for participation in global economic relations.
“Our agricultural sector, our production potential, primarily engineering, the raw materials sector, including the extraction of rare-earth elements, our gas sector, including convenient gas storage facilities on the border of the European Union countries, our clean “green” energy sector, which has the largest growth potential in the region, – all these are colossal opportunities to guarantee stability,” he adds.
According to Zelensky, the investments in Ukraine will contribute to common development, well-being and profit.
“The objective need for such funds is a thousand times greater. We understand that. And I believe that this fund is a start, the right start of the right investments right now in Ukraine. In the country that will gain the historically most important victory of our time,” the president says.
“We are honoured to make history by launching the first fund for Ukraine and Moldova since February 24, and the first to back these countries since they achieved well-deserved and hard-won EU Candidate Status in June,” says Lenna Koszarny, Horizon Capital’s Founding Partner and CEO.
“We dedicate this Fund to the people of Ukraine, who inspire the world with their bravery and tenacity in defending their homeland, thus ensuring a future where Ukraine assumes its rightful place among European nations. Horizon Capital has stood with Ukraine since 2006 and stands with Ukraine today and in the future. We are immensely grateful to our esteemed Limited Partners for committing capital which may be deployed now, for their steadfast belief in our team, our track record, our strategy, and our vision, and for this strong signalling effect to the market,” she adds.
Vasile Tofan, Senior Partner at Horizon Capital, says, “The new Fund will continue to focus on tech and export-oriented companies, led by visionary entrepreneurs with a proven track record of leveraging competitive platforms to succeed globally, building on the success of our vintage 2017 $200M fund, whose stellar results are driven by the outstanding performance of the underlying companies and their talented founders and management teams. We look forward to continuing to back founders with an average of $10-30M in growth capital, as well as the strong value-add contribution of our team.”
Horizontal Capital: What you need to know
Horizon Capital is a private equity firm in Emerging Europe with over $1.2B in assets from investors with a capital base exceeding $570B, raising over $580M in growth capital to back visionary entrepreneurs from Ukraine and Moldova in just over five years.
The Horizon Capital managed funds have invested in over 160 companies employing more than 77,000 people in the region.