Ukrainian Investment Bankers Launch a $100 Million “Private Equity” fund with a Focus on Green Projects

by Meifan Honcharuk
Monday, December 13, 2021
Ukrainian Investment Bankers Launch a $100 Million “Private Equity” fund with a Focus on Green Projects

Creation of the "Green Sustainable Fund One" with an eye on investments in green projects worth more than $100 million

In October 2021, a number of well-known businessmen and investment bankers, including Konstantin Magaletsky, Sergey Maslichenko, Mikhail Merkulov, Andrey Stavnitser and Philip Grushko, launched a private equity fund with a volume of more than $100 million. Each partner will be responsible for their own direction.

About the investment fund

The term of the fund is from 6 to 10 years. Roman Bondar, head of the Ukrainian office of Korn Ferry, calls the alliance exciting and unique for Ukraine. In it, he sees a variety of competencies: managerial, investment and entrepreneurial experience.

The businessmen intend to cooperate with international financial institutions such as the EBRD and IFC and attract money from private investors. The fund will be partially financed by the co-founders, including the Stavnitser family (Ukrainian businessman, partner and founder of the investment company SD Capital), whose fortune is estimated at $113 million.

Potential investment projects:

  • Green energy is not only solar and wind but also biogas, biomass, etc.;
  • Build green warehouses, schools, hospitals (buildings that meet European standards);
  • Transport and logistics.;
  • Digital infrastructure (data centers).

80% of the collected money will be spent in Ukraine, 20% — in neighboring countries (such as Georgia, Moldova).

Stavnitser sees prospects in constructing green hospitals and schools, not only municipal but also private projects.

What is the fund structure, and where does the money come from?

The fund is aimed at mid-level regional entrepreneurs who are ready to implement and manage similar projects.

The full launch of the fund will take 1-1.5 years. Founders expect to be the first to see IFI's in the role of investors — they more readily accept country risk. Further, family offices are catching up with other participants, foundations that give money for sustainability and green projects.

A $100 million investment in the fund, this bottom line, is expected to be several hundred million dollars. Capital for Ukraine today is a bottleneck. It is tough to attract it from international markets.

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