Horizon Capital, a US private-equity firm investing in high growth and export-driven companies in Ukraine and the near region, has closed its third fund, Emerging Europe Growth Fund III (EEGF III) at its USD200 million hard cap, surpassing the fund’s USD150 million target.
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.
Led by Founding Partners Lenna Koszarny and Jeffrey C Neal and Senior Partner Denis Tafintsev, Horizon manages over USD850 million in assets from investors with a capital base exceeding USD350 billion. Its Ukraine-focused funds have invested over USD650 million in 140 companies employing over 46,000 people.
“Our fundraising success should send a strong signal that Ukraine offers tremendous rewards for those willing to look past the headlines,” says Lenna Koszarny, Horizon Capital’s Founding Partner and CEO. “This fund is a testament to our long-term, valued investor relationships, our strong team of talented professionals and export-focused investment strategy, and our solid track record of successful investing in this country. Since our first close last year, the new fund has already made six compelling investments and will close many more exciting deals in the years to come”.
EEGF III was launched with an anchor commitment from Western NIS Enterprise Fund and attracted investments from the EBRD, FMO, IFC, PROPARCO, DEG, IFU with over one-third of capital raised from institutional investors, foundations, family offices and other private investors. The new fund enjoys strong backing from existing investors of Horizon Capital’s prior funds, who contributed over 55 per cent of total commitments. US and Europe-based investors contributed roughly 35 per cent each of the total capital raised, with the remainder from other international investors.
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. Investments will range from USD5-20 million and be made over the next 2-3 years.
Jeffrey Neal, Horizon Capital Founding Partner and Chairman of the Investment Committee, says: “Under Lenna Koszarny’s leadership and with our talented deal partners Denis Tafintsev, Vasile Tofan and Konstantin Magaletskyi, Horizon Capital has reached new heights. I am confident in our team’s ability to back visionary founders and deliver solid returns to our investors.”
