The International Finance Corporation (IFC), part of the World Bank Group, will invest $25 million in the Rebuild Ukraine Fund LP (REBUF) — a private equity fund established a year ago by leading Ukrainian investment group Dragon Capital. According to IFC’s official website, the corporation’s board of directors approved the investment on November 3.
The Rebuild Ukraine Fund focuses on small and medium-sized enterprises and has a target size of $250 million. It is a diversified fund that will invest in companies operating in consumer goods and services, healthcare, pharmaceuticals, financial services, agribusiness, building materials production, retail, and technology.
According to IFC, the fund aims to acquire controlling stakes in mature companies through buyout or growth capital strategies. IFC’s investment will be partially protected, with 50% of the amount covered by a first-loss guarantee supported by France and other donors.
IFC emphasized that its participation as an anchor investor will be a key factor in achieving the fund’s successful first closing, given the challenging investment environment. The corporation noted that since the start of Russia’s full-scale invasion of Ukraine, only one private equity fund — Horizon Capital Growth Fund IV, with total commitments of $350 million — has been launched, also with the support of international development institutions, including IFC. REBUF is expected to be financed primarily by development finance institutions (DFIs).
At the Ukraine Recovery Conference in Rome in July, Andriy Nosok, Managing Director and Head of Private Equity at Dragon Capital, announced that the company would invest $20 million of its own capital into REBUF. In addition, in early July, the European Bank for Reconstruction and Development (EBRD) approved a $25 million contribution to the fund. According to Nosok, the first closing of the fund was initially scheduled for September 2025.
Dragon Capital has been investing in private equity in Ukraine for 25 years and has managed private equity funds since 2010. REBUF will be the firm’s third fund, following the same strategy as its predecessors. Investment tickets for individual portfolio companies will range from $7 million to $30 million.
Founded in 2000 in Kyiv, Dragon Capital is one of Ukraine’s largest investment groups, providing a full range of investment banking, brokerage, private equity, and asset management services for institutional, corporate, and private clients. According to Tomas Fiala, the company’s founder and CEO, the group’s portfolio currently includes around 50 companies and real estate projects. Between 2015 and 2021, Dragon Capital invested approximately $700 million in Ukraine (excluding reinvestments) and plans to invest an additional $100 million in 2025.
In addition, the EBRD and IFC are considering participation in another joint initiative — the Amber Dragon Ukraine Infrastructure Fund I, which will finance infrastructure development in Ukraine. The fund, with a target size of €350 million, is expected to receive €60 million from the EBRD, €40 million from IFC, and €40 million from the European Investment Bank (EIB). The EBRD board of directors will review the project on December 3.
