Horizon Capital Achieves Significant Milestone with Catalyst Fund
In an exciting development, Horizon Capital, a prominent private equity firm in Emerging Europe managing approximately $1.8 billion in assets, has successfully held its first closing for the Horizon Capital Catalyst Fund ("HCCF" or "Catalyst Fund"). This fund aims to gather a total of €300 million within a calculated timeframe, and it has impressively secured more than 50% of this target in just six months, since launching its initiative at a recent conference.
A Vision for Ukraine's Economic Recovery
The focus of the Catalyst Fund is to alleviate the pressing shortage of equity capital crucial for Ukraine's most vital sectors, including energy, digital infrastructure, and construction. By collaborating with lead partners, Horizon Capital aims to address the immediate needs of these critical industries, ensuring that they receive the necessary support to thrive amidst ongoing challenges.
Mobilizing Capital for Long-term Growth
Horizon Capital aspires to mobilize €3 billion to stimulate critical sectors within Ukraine, leveraging its role to provide foundational capital to asset-heavy, domestic-oriented companies. The fund intends to cultivate partnerships with global strategics and investments to expedite their entry into the Ukrainian market alongside established local partners. This innovative approach aims to replicate previous successful ventures, notably the landmark Datagroup-Volia-Lifecell telecom transaction, which marked a significant turning point in Ukraine's recent economic history.
Support from Esteemed Institutions
The Catalyst Fund has garnered invaluable backing from respected institutions such as the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD). Their commitment not only enhances the fund's credibility but also signals a strong vote of confidence in Ukraine's long-term growth prospects. With support from these investors, Horizon Capital can strategically advance its impressive portfolio of investment opportunities, targeting a robust pipeline that anticipates attracting upwards of €1 billion in capital.
Horizon Capital's Vision
The launch of the Catalyst Fund marks a pivotal achievement for Horizon Capital as it approaches its twentieth anniversary. This initiative is especially significant as it is the second Ukraine-specific fund created since recent geopolitical tensions escalated. The firm has now successfully raised over $1 billion dedicated to Ukraine over the past decade.
Fostering Partnerships for Sustainable Development
Dmytro Boroday, Partner at Horizon Capital and Lead for the Catalyst Fund, highlights the fund's mission to foster strategic partnerships. "Catalyst Fund is built for partnerships. We aim to team up with global investors and facilitate their market penetration in Ukraine. Concurrently, we are committed to supporting local entrepreneurs in developing scalable businesses within the critical sectors of the Ukrainian economy," he states. This approach not only supports the local business landscape but also enhances job creation and economic stability.
The fund's strategy involves investing between €20–50 million in growth capital for each initiative while providing significant co-financing opportunities to its stakeholders. By channeling catalytic equity, Horizon Capital intends to enhance the volume of qualifying transactions in Ukraine and accelerate the mobilization of essential capital, facilitating the reconstruction and revitalization of the economy.
About Horizon Capital
Horizon Capital stands as the leading private equity firm in Emerging Europe with a steadfast portfolio managed on behalf of investors collectively possessing over $700 billion in capital. The firm's strategic focus is on supporting visionary entrepreneurs who drive the growth of businesses in Ukraine and Moldova, having invested in more than 190 companies that collectively employ over 56,000 individuals.
The Catalyst Fund's creation is a testament to the unity of substantial institutions coming together in support of Ukraine's promising future, reiterating a shared vision for economic recovery and prosperity.
Frequently Asked Questions
What is the Horizon Capital Catalyst Fund?
The Horizon Capital Catalyst Fund aims to raise €300 million to support critical sectors in Ukraine's economy, focusing on energy, digital infrastructure, and construction.
How much has the Catalyst Fund raised so far?
The fund has successfully raised over €150 million, achieving more than 50% of its target in just six months.
What sectors will the Catalyst Fund focus on?
The fund will target energy, digital infrastructure, and construction, which are essential for Ukraine's economic recovery.
Who are the major backers of the Catalyst Fund?
Investors include notable institutions such as the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).
What is Horizon Capital’s investment strategy?
Horizon Capital focuses on backing visionary entrepreneurs and supporting high-impact businesses in Ukraine and Moldova, fostering economic growth.
