Ukrainian Redevelopment Fund LP (URF) managed by Soros Fund Management (SFM) in the interests of the Soros family, has become one of the seed investors in Dragon Capital New Ukraine Fund under the management of Dragon Capital (Kyiv).
" URF will join Dragon Capital as a seed investor in The New Ukraine Fund. Dragon Capital’s private equity arm will act as the general partner. Shortly after the first closing, which is expected in before the end of 2015, Dragon Capital may invite other investors to participate," Dragon Capital said in a press release on Wednesday.
Dragon Capital said that the New Ukraine Fund will invest in a wide range of sectors of the Ukrainian economy and will provide businesses with capital and managerial support to enhance their performance and upgrade technologies to support long-term growth. The New Ukraine Fund will capitalize on Dragon Capital’s management resources and local know-how.
"We believe that international private capital combined with strong local management skills will contribute to and benefit from the recovery of Ukrainian economy. The New Ukraine Fund is well positioned to become one of the first success stories in post-crisis Ukrainian private equity arena," the press service said, citing Michael Vachon, a spokesman for SFM.
In turn, Dragon Capital CEO Tomas Fiala said that the investment company is committing a substantial amount of its own capital to the fund.
"We believe the current market environment in Ukraine represents an excellent opportunity to buy and invest in local businesses at attractive prices. We will seek to capitalize on our wide network of proprietary contacts in Ukraine and our disciplined and patient investment approach. We will seek to partner with companies to which we can add value on the operational side," he said.
Dragon Capital is one of Ukraine’s leading groups of companies working in the field of investment and financial services, offering a comprehensive range of services in equities and fixed income sales, trading and research, investment banking, private equity and asset management to institutional, corporate and private clients. Established in 2000, the company has been minority-owned by Goldman Sachs, one of the largest global banks, since 2007.