The firm currently manages $1.6 billion in assets and has a track record of co-investing with international partners that lack direct experience in Ukraine.
1. Background on Horizon Capital
- Established Reputation
- With $1.6 billion under management, Horizon Capital stands among the most active and experienced private equity investors in Ukraine and the broader region. - Focus on Growth
- The company channels capital into mid-cap and growth-oriented businesses, aiming to drive expansion and boost competitiveness in target sectors.
2. Proposed “Catalyst Fund” Concept
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Why a Catalyst Fund?
- Leverage Local Expertise: Many global investors are interested in Ukraine but may be unfamiliar with local conditions and networks. A “catalyst fund” can provide on-the-ground knowledge, streamline entry, and share risk.
- Attract Large Foreign Capital: By co-investing alongside multinational partners, Horizon Capital envisions facilitating substantial inflows into high-potential sectors.
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Comparison with Existing Strategy
- Koszarna highlights previous investments in telecommunications:
- Datagroup–Volia–lifecell: French billionaire Xavier Niel’s holding company, NJJ, holds 85%, while Horizon Capital maintains a 10% stake.
- This demonstrates how Horizon Capital catalyzed a foreign investor’s entry, providing local expertise and co-investment.
- Koszarna highlights previous investments in telecommunications:
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Potential Role in Ukraine’s Recovery
- As Ukraine seeks post-war reconstruction and economic revitalization, such a fund could unlock broader international investment, spurring job creation and modernization in key industries.
3. Horizon Capital’s Value Proposition
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Trusted Local Partner
- “He (a large foreign investor) needs a partner because he doesn’t know the country, he doesn’t have any contacts here,” Koszarna explains.
- Horizon Capital offers deep local knowledge, contacts, and co-financing to mitigate entry risk for newcomers.
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Growing Portfolio
- With successful partnerships across telecom, IT, agri-business, and consumer segments, the firm can extend its portfolio companies as a platform for newcomers to quickly scale.
4. Outlook and Next Steps
- Fundraising Initiative
- Horizon Capital’s move toward a catalyst fund aligns with renewed investor interest in Ukraine’s emerging market, especially in tech, infrastructure, and telecom sectors. - Possible Timing
- While no official timeline is announced, the firm is actively exploring how to structure and raise this new vehicle, building on its reputation for prudent investments and strong governance. - Potential Impact
- If launched, the catalyst fund could channel significant foreign capital into Ukraine, bolster local entrepreneurship, and strengthen the country’s integration into global markets.
Conclusion
Horizon Capital’s consideration of a Catalyst Fund highlights a strategic vision for mobilizing large-scale international investment in Ukraine. By leveraging local expertise and co-investment models, the firm aims to provide foreign investors with a trusted partnership and improved risk management. If realized, this initiative stands to catalyze Ukraine’s economic recovery and modernization, in part by drawing on the success of prior co-investment projects like Datagroup–Volia–lifecell.
