Six public-sector organizations recently invested in the second funding round of Horizon Capital IV with the goal of enabling the equity fund to supply more working capital to “fast-growing, technology-enabled small and medium-size businesses” in Ukraine and Moldova. The fund also seeks to “promote gender equality in finance.” The new investments, which bring the fund’s volume to USD 254 million, are:
- USD 30 million from the World Bank Group’s International Finance Corporation (IFC), which also invested in the fund’s first round;
- USD 25 million from the International Development Finance Corporation (DFC), a self-funding entity of the US government;
- EUR 17.3 million (USD 19 million) from Société de Promotion et de Participation pour la Coopération Économique (Proparco), an entity controlled by the French government;
- USD 15 million from the Finnish Fund for Industrial Cooperation (Finnfund), which is owned by the government of Finland;
- USD 15 million from Swedfund International, which is owned by the government of Sweden; and
- USD 5 million from the government of Denmark’s Investeringsfonden for Udviklingslande (IFU), which is also known as the Danish Investment Fund for Developing Countries.
Horizon Capital IV is managed by Horizon Capital, a private equity firm with offices in Ukraine that invests primarily in Ukraine and Moldova. The firm was founded in 2006 and has six funds, approximately 40 investors and USD 1.4 billion assets under management as of an undisclosed date.
By Rohit Dayanand, Research Associate
Sources and Additional Resources
Horizon Capital press release
https://horizoncapital.com.ua/news-post/investors-unite-to-back-ukraine-in-historic-fund
Interfax article including sizes of investments
https://interfax.com/newsroom/top-stories/90191/
Pulse 2.0 press release on Horizon Capital IV
https://pulse2.com/horizon-capital-over-250-million-in-commitments-raised-with-a-focus-on-ukraine/
Horizon Capital homepage
https://horizoncapital.com.ua/
IFC homepage
https://www.ifc.org
IFU homepage
https://www.ifu.dk
Finnfund homepage
https://www.finnfund.fi/
Proparco homepage
https://www.proparco.fr/
Swedfund homepage
https://www.swedfund.se/
Previous MicroCapital brief on DFC
https://www.microcapital.org/microcapital-brief-dfc-to-support-mastercard-community-pass-program-to-expand-access-to-digital-services-in-africa-india/
Previous MicroCapital brief on Finnfund
https://www.microcapital.org/microcapital-brief-cdc-finnfund-lend-25m-to-kashf-foundation-for-microfinance-for-women-in-pakistan/
Previous MicroCapital brief on IFC
https://www.microcapital.org/microcapital-brief-agcelerant-bank-of-africa-ifc-to-support-rice-value-chains-in-senegal-with-access-to-loans-insurance-tools-inputs/
Previous MicroCapital brief on IFU
https://www.microcapital.org/microcapital-brief-ifu-incofin-invest-4-2m-in-equity-in-ningxia-dongfang-huimin-microfinance-of-china-to-boost-financial-inclusion-for-rural-women/
Previous MicroCapital brief on Proparco
https://www.microcapital.org/microcapital-brief-fmo-proparco-lend-125m-to-nmb-for-msme-agriculture-green-financing-in-tanzania/
Previous MicroCapital brief on Swedfund
https://www.microcapital.org/microcapital-brief-swedfund-to-loan-12m-to-sunfunder-solar-energy-transformation-set-fund/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Download a sample at https://www.microcapital.org/products-page/.
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