Dragon Capital has completed the first close of its Rebuild Ukraine Fund (REBUF), enabling the private equity vehicle to begin investment operations in Ukraine, the company said on Jan. 16.
The fund, launched about a year ago, focuses on investing in Ukrainian small and medium-sized enterprises (SMEs) operating under wartime conditions. It’s the first new Dragon Capital fund raised since Russia’s full-scale invasion to target real assets in the country.
REBUF invests across sectors considered critical for economic resilience, including consumer goods and services, healthcare, pharmaceuticals, financial services, agriculture-related businesses, building materials, retail and technology.
According to the company, the fund’s target size is $200-250 million, with planned investments of $7 million to $30 million per company.
“Small and medium-sized companies represent the backbone of Ukraine’s economy, yet they continue to face severe capital constraints due to the war,” the press release quoted Andrii Nosok, managing director and head of private equity at Dragon Capital.
Dragon Capital Targets Undercapitalized Small and Medium-Sized Businesses
Dragon Capital wrote that REBUF follows the same private equity strategy as its previous funds, with a primary focus on Ukraine’s undercapitalized SME segment.
The fund will target small and medium-sized enterprises operating in sectors such as consumer goods and services, healthcare, pharmaceuticals, financial technology and building materials.
The company wrote that the first close of the fund was supported by several development finance institutions, including the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), Norfund and BIO, the Belgian Investment Company for Developing Countries, alongside Dragon Capital.
What is Dragon Capital?
Founded in Kyiv in 2000, Dragon Capital is one of Ukraine’s largest investment groups, providing investment banking, brokerage, private equity and asset management services to institutional, corporate and private clients.
The company’s investment portfolio currently includes nearly 50 companies and real estate projects. Between 2015 and 2021, Dragon Capital invested around $700 million in Ukraine, excluding reinvestments, and plans to invest about $100 million in 2025.
REBUF is the company’s third private equity fund. Dragon Capital has been investing in private equity in Ukraine for 25 years and has managed private equity funds since 2010.