Horizon Capital, a U.S. private-equity firm investing primarily in fast- growing tech and export-oriented companies in Ukraine and Moldova, announced that its latest fund, Horizon Capital Growth Fund IV (HCGF IV, the “Fund”) has reached $297.5 million at its Third Closing held today, oversubscribed relative to its $250 million target size, that was exceeded at second closing in April 2023 when HCGF IV reached $254 million. In July, the Fund announced its first investment in Preply, a global EdTech company with R&D in Ukraine, and intends to back 3-5 more portfolio companies prior to the end of 2023. HCGF IV backs visionary entrepreneurs in Ukraine and Moldova leading high-growth, high-impact tech and export-oriented companies, including light manufacturing, food processing, innovative consumer goods, fintech and more. The Fund was raised following the full-fledged invasion of Ukraine and is investing now, to maximize its contribution to Ukraine’s ongoing resilience, including supporting growth and job creation, expanding the tax base, increasing availability of capital for SMEs, and promoting gender smart investing. HCGF IV is the first fund in Central and Eastern Europe (CEE) to be awarded 2X Flagship Fund status, 1 of circa 10 globally attaining the highest 2X Challenge designation for funds, and an estimated 1 of 2 such funds led by a female Founding Partner & CEO. 2X Challenge was launched as a bold commitment to invest in the world’s women and promote gender equality in finance.
Lenna Koszarny, Founding Partner and Chief Executive Officer, said, “We are thrilled to welcome private investors to this closing, many of whom have backed prior Horizon Capital funds, to join this historic fund and contribute to Ukraine’s business resilience. Our third closing has attracted leading private sector players ready and willing to put equity capital to work in Ukraine alongside visionary entrepreneurs immediately, with over 65% of capital raised at this closing committed by the private sector. Horizon Capital is a firm believer in Ukraine and Moldova, in compelling investment opportunities alongside world- class founders in our core markets, and our ability to deliver both returns and impact to our investors, underpinned by our team’s significant commitment to HCGF IV, now exceeding 4% of funds raised.
At today’s closing, the Fund welcomed institutional capital to HCGF IV, including an additional $10 million top-up from the European Bank for Reconstruction and Development (“EBRD”) to raise its commitment from $40 to $50 million, as well as commitments from leading private sector institutions, family offices, foundations, and other investors. HCGF IV investors have also granted an extension through December 31, 2023 to hold Final Closing, thus enabling pending commitments to complete their internal processes.
Horizon Capital is the leading private equity firm in Emerging Europe with $1.5 billion in assets from investors with a capital base exceeding $630 billion, raising over $750 million in growth capital to back visionary entrepreneurs from Ukraine and Moldova (the “Region”) in just over 5 years. Horizon Capital-managed funds have invested in over 160 companies employing more than 80,000 people in the Region.