Western NIS Enterprise Fund, a regional investor, has announced that it will contribute $30 million to a new fund which will seek to invest in “fast-growing, export-oriented” small and medium-sized businesses with roots in Ukraine and Moldova.
The new fund, which has a target size of $150 million, is known as the Emerging Europe Growth Fund III. Managed by private equity firm Horizon Capital, it has already received commitments of contributions of up to $20 million from the International Finance Corporation and $30 million from the European Bank for Reconstruction and Development. The Overseas Private Investment Corporation, a U.S. government agency which helps American businesses invest in emerging markets, has approved a loan to the fund of up to $37.5 million.
The new fund’s focus on export-oriented companies comes after exports of goods from Ukraine to the European Union jumped by 24.5 percent year-on-year in the first quarter or 2017 to nearly $4 billion, according to Ukraine’s Ministry of Trade and Economic Development. The 28-nation bloc was the top destination for Ukrainian goods during the period.