Horizon Capital Attracts $125m at First Closing of its $250m target Ukraine-focused Fund to Back Visionary Entrepreneurs Leading High-Growth Tech and Export-Oriented Companies
September 26, 2022
Horizon Capital, a U.S. private-equity firm investing in fast-growing tech and export-oriented companies in Ukraine and the near region, announced the launch of Horizon Capital Growth Fund IV, L.P. (“HCGF IV”, the “Fund”), with $125 million raised as of first close. Horizon Capital is the leading private equity firm in Emerging Europe with over $1.2 billion in assets from investors with a capital base exceeding $570 billion, raising over $580 million in growth capital to back visionary entrepreneurs from Ukraine and Moldova (the “Region”) in just over 5 years. Horizon Capital-managed funds have invested in over 160 companies employing more than 77,000 people in the Region.
With the launch of HCGF IV, Horizon Capital has achieved a record high first closing, reaching 50% of its $250 million target, and the highest first close result in the firm’s history. The Fund’s first closing was backed by the European Bank for Reconstruction and Development (“EBRD”), the International Finance Corporation (“IFC”), Deutsche Investitions- und Entwicklungsgesellschaft (“DEG”) and a subsidiary of KfW Group, the Dutch Entrepreneurial Development Bank (“FMO”), the Swiss Investment Fund for Emerging Markets (“SIFEM”), the Western NIS Enterprise Fund, and the Zero Gap Fund, an impact investing collaboration between The Rockefeller Foundation and the John D. and Catherine T. MacArthur Foundation.
The official signing ceremony took place today at IFC’s London office, and included top representatives from these esteemed institutions, together with Horizon Capital’s Founding Partner and CEO Lenna Koszarny, and Senior Partner, Vasile Tofan. The President of Ukraine Volodymyr Zelenskyy joined the Fund’s investors today at the official signing ceremony from Ukraine via video link. President Zelenskyy commended the investors for investing today in Ukraine, for backing Ukraine at a critical moment in its history and ensuring capital was available to support economic renewal and job creation.
“We are honored to make history by launching the first fund for Ukraine and Moldova since February 24th, and the first to back these countries since they achieved well-deserved and hard-won EU Candidate Status in June”, said 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. Ukraine needs investors who believe in the country, who stand shoulder-to-shoulder with its people, who are leading the way for others, and who leave no stone unturned to ensure that investment capital is available already now, and not only once the war ends. Ukrainians must have access to sufficient resources today to propel the economic rebound, renewal and revitalization of their country. Horizon Capital has stood with Ukraine since 2006, 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 signaling effect to the market. We are confident that this historic fund will be a resounding success, delivering both returns and impact in the years ahead.”
Vasile Tofan, Senior Partner continued “I am proud of my fellow compatriots in Moldova for welcoming more Ukrainian refugees per capita than any other country, as well as their strength and resilience throughout. This spirit of resilience is also demonstrated by technology companies throughout the Region, especially in Ukraine, where the tech sector fuels a high pace of innovation and digitalization, expanding 23% YoY during the first half of 2022 and delivering record-high export revenues of $3.74 billion, with over $8 billion forecast for 2022. The new Fund will continue to focus on tech and export-oriented companies, led by visionary entrepreneurs with a proven track record of leveraging competitive platforms to succeed globally, building on the success of our vintage 2017 US$ 200 million 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 $10-30 million in growth capital, as well as the strong value-add contribution of our team.”
Horizon Capital (www.horizoncapital.com.ua) is the leading private equity firm in Ukraine, backed by over 40 institutional investors with over $1.2 billion under management in six funds. Horizon Capital is a value-added investor, backing visionary entrepreneurs leading transformational businesses in Ukraine and the near region. Stephenson Harwood LLP acted as legal counsel for the Fund.
This press release is provided for information purposes only. Horizon Capital is not hereby providing investment advice or providing any person with any right to rely on the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy limited partnership interests in Horizon Capital Growth Fund IV LP (the “Interests”) or any other security in any jurisdiction and shall not, in any circumstance, constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. There is no public offering of the Interests. The Interests are being offered by means of a private placement to suitable investors.