The International Finance Corporation (IFC), a member of the World Bank Group, will invest $25 million in the Rebuild Ukraine Fund LP (REBUF), a private equity fund launched a year ago by leading Ukrainian investment group Dragon Capital. According to IFC’s website, the corporation’s Board of Directors approved participation in the project on November 3.
The Rebuild Ukraine Fund targets small and medium-sized enterprises, with a total fund size of $250 million. It will invest in companies operating in consumer goods and services, healthcare, pharmaceuticals, financial services, agribusiness, construction materials manufacturing, retail, and technology.
IFC noted that the fund aims to acquire controlling stakes in mature companies through buyout or growth capital strategies. IFC’s investment will be partially protected — 50% of the amount will be covered by a first-loss guarantee supported by France and other donors.
As IFC emphasized, its participation as an anchor investor will be key to securing the fund’s first closing in Ukraine’s challenging investment environment. IFC recalled that since Russia’s full-scale invasion, only one other private equity fund — the $350 million Horizon Capital Growth Fund IV — has been launched, also with the support of international development institutions, including IFC. REBUF is also expected to attract financing primarily from development finance institutions (DFIs).
According to Andriy Nosok, Managing Director and Head of Private Equity at Dragon Capital, who spoke at the Ukraine Recovery Conference in Rome in July, Dragon Capital will contribute $20 million of its own capital to REBUF. Earlier this year, the European Bank for Reconstruction and Development (EBRD) approved a $25 million investment in the fund. The first closing was initially planned for September 2024.
Dragon Capital has been investing in private equity in Ukraine for 25 years and managing PE funds since 2010. REBUF will be the company’s third fund, following the same strategy as its predecessors, with investments ranging from $7 million to $30 million per company.
Founded in 2000 in Kyiv, Dragon Capital is one of Ukraine’s largest investment groups, providing a full range of services in investment banking, brokerage, private equity, and asset management for institutional, corporate, and private clients. According to founder and CEO Tomas Fiala, the group’s portfolio currently includes around 50 companies and real estate projects. Between 2015 and 2021, Dragon Capital invested about $700 million in Ukraine (excluding reinvestments) and plans to invest another $100 million in 2025.
