Swedfund invests USD 15 million into Horizon Capital Growth Fund IV to back leading high-growth tech and export-oriented companies in Ukraine and Moldova

Swedfund invests USD 15 million in HCGF IV for investments in small and medium-sized companies in the IT-sector in Ukraine. The investment will help create jobs and export revenues to Ukraine.

The intention is primarily to invest in leading IT companies in Ukraine and Moldova, a region that currently has limited access to private capital given the full-fledged Russian invasion of Ukraine.

The Russian Invasion has had a major impact on the Ukrainian economy. GDP decreased by 29 percent in 2022, according to statistics from Ukrainian authorities. The war and its impact on the economy have led to an additional seven million people now living in poverty and Ukraine losing 15 years of development. At the same time, the World Bank, the EU, the UN and the Ukrainian government estimate the cost of reconstruction and recovery in Ukraine at €393 billion.

In Swedfunds capacity as a development financier, we can, together with our partners, create the conditions for the continued development of the private sector in Ukraine and Moldova by continuing to carry out investments in a risky environment. Companies operating in the IT sector in Ukraine have quickly adapted to meet the new conditions that prevail given the war, with the IT sector expanding 6 percent in 2022 to over USD 7.3 billion in service exports, and paying over USD 1.5 billion in taxes and fees last year. The companies continue to create jobs, especially for the young population of Ukraine and Moldova. They also contribute to increased export revenues and inflows of hard currency to Ukraine.

At the signing at the presidential palace in Kiev today, Ukrainian President Volodymyr Zelenskyy attended.

- This is an important investment for Ukraine. You are leading the way and showing through this investment that it is possible to make investments in Ukraine, President Volodymyr Zelenskyy said at a ceremony at the presidential palace.

- This is an excellent way for us to support developments in Ukraine in the midst of a raging war. Swedfund sees the investment as a way to contribute to a strengthened private sector and job creation in a region with major challenges. In our role as development financier, it is important to show that it is possible to make investments in a country where the needs are enormous. By investing, we can contribute to lasting resilience through job creation and export revenue, says Swedfund's CEO Maria Håkansson.

- Investment is a very important part of the process of rebuilding Ukraine. This announcement from Swedfund is gratifying and a good example of how Sweden can contribute to strengthening the private sector in the country, says the Minister for International Development Cooperation and Foreign Trade, Johan Forssell.

Investments that create jobs and increase export revenues, strengthen both the individual's and society's resilience during an ongoing conflict by setting clear requirements and working together with the fund to strengthen sustainability work in areas such as anti-corruption and human rights.

ABOUT HORIZON

The investment is made in Horizon Capital Growth Fund IV, which is managed by Horizon Capital, the leading private equity firm in Ukraine with USD 1.4 billion in assets from investors with a capital base exceeding USD 630 billion, raising over USD 700 million in growth capital to back visionary entrepreneurs from Ukraine and Moldova (the “Region”) in just over 5 years. The new fund, Horizon Capital Growth Fund IV exceeded its target of USD 250 million at this closing. Horizon Capital funds are backed by over 40 institutional investors, including several development financial institutions.

Horizon Capital (www.horizoncapital.com.ua) is the leading private equity firm in Ukraine, backed by over 40 institutional investors with $1.4 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.