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Horizon Capital expects to invest $100-200 million in Ukraine over 5 years

Source : 112 Ukraine

Its investments are expected to be focused on medium-sized, fast-growing, export-oriented businesses.
12:52, 21 February 2018

capital.ua

Horizon Capital, an asset management company that has invested over $500 million in Ukraine through private equity funds, expects to invest another $100-200 million over the next five years. The founder and CEO of Horizon Capital Olena Kosharna said this, Interfax-Ukraine reports.

“After the hard times of 2013-2014, we continue to invest – more than $50 million over the time. Our plans for the next five years is to invest another $100-200 million. We see many opportunities now”, - she said in an interview with “Business” magazine.

Related: Why Ukraine didn't become investment Mecca?

According to her, the company is currently discussing the possibility of ……. With over 30 different corporations, in search for “visionary founders”.

Olena Kosharna pointed out that the supply of financing Ukrainian businesses has grown in the recent time, and it should be prompted by foreign direct investment. The volume of foreign direct investment presently stands at only $1-1.5 billion annually.

Related: What can cause inflow of foreign direct investment to Ukraine?

“Within five years I would like to see investment of around $6-7 billion annually: not only from the Americas and Europe, but also from the Middle East, Asia, India, China”, - the CEO of Horizon Capital added.

She sees Ukraine’s IT sector as the primary driver for the nation’s exports through transit from exporting raw materials to exporting goods and services with high value added.

Horizon Capital was established in 2006 by four partners, who began their cooperation through Western NIS Enterprise Fund (WNISEF), which was founded in 1994 with $150 million in capital from Ukraine and Moldova. One of the partners – Natalya Yaresko – who was appointed the Minister of Finance of Ukraine in 2014. The fund is headquartered in Kyiv and Chicago.

Related: Contender for PM's post: Natalia Yaresko

Horizon Capital manages four private equity funds (over 40 institutional investors) with assets of over $700 million, including WNISEF, EEGF (founded in 2006 with $132 million in capital) and EEGF II (established in 2008 with $370 million in capital). The company invests this money in a number of projects in Ukraine, Moldova and Belarus.

Related: Porshenko meets investors from Horizon Capital and Western NIS Enterprise Fund

In the summer of 2016, the US Overseas Private Investment Corporation (OPIC) informed about the establishment of EEGF III (headquartered in Delaware, USA) with $150 million in capital. Its investments are expected to be focused on medium-sized, fast-growing, export-oriented businesses in Ukraine and Moldova that can potentially be among the leaders of their respective local and regional markets. The fund expects to invest through acquiring minority stakes in such companies. At the same time, whenever needed, it is ready to offer start-up capital, to acquire companies or to participate in privatization.

OPIC reported an allocation of $37.5 million to EEGF III. A year later, the International Finance Corporation (part of the World Bank Group) claimed to be prepared to invest up to $15 million, whereas the European Bank for Reconstruction and Development stated to be committed to allocate $30 million. Alongside them, the Dutch Development Bank and WNISEF are among the co-investors of the newly established fund.

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