Key Takeaways
- • IFC is making an equity investment of up to €50 million in the Horizon Capital Catalyst Fund, which targets €300 million and will acquire minority stakes in Ukrainian energy, construction and digital infrastructure companies.
- • Around half of IFC's equity investment is covered by guarantees from the European Commission under the Ukraine Investment Framework and the Government of France under IFC's Economic Resilience Action (ERA) Program.
- • IFC has also set aside a €50 million co-investment envelope to invest alongside the fund in select portfolio companies.
- • The deal is IFC's fourth private equity fund investment in Ukraine since February 2022, bringing its fund investments in the country to $190 million.
- • Ukraine's reconstruction needs are estimated at about $524 billion over the next decade, with infrastructure accounting for nearly 40 percent of total damage and about one-third of reconstruction needs.
Summary
The International Finance Corporation (IFC) announced on January 20, 2026, in Davos, Switzerland, an equity investment of up to €50 million in the Horizon Capital Catalyst Fund, a private equity platform aimed at restoring Ukraine's critical infrastructure, including electricity, construction capacity and digital networks. According to IFC, the investment is intended to help restore energy supply, expand construction capacity and upgrade digital networks at a time when public resources remain severely constrained.
The fund has a target size of €300 million and will acquire minority stakes in companies across energy, construction and digital infrastructure. IFC has also reserved a €50 million co-investment envelope to invest alongside the fund in select companies. To de-risk the investment, around half of IFC's equity commitment will be covered by guarantees from the European Commission under the Ukraine Investment Framework and the Government of France in support of IFC's ERA Program for Ukraine. The fund also targets at least 25 percent of its portfolio companies being women-owned or women-led.
IFC cites the latest Rapid Damage and Needs Assessment (RDNA) estimating reconstruction needs at about $524 billion over the next decade, with infrastructure accounting for nearly 40 percent of total damage. IFC reports close to $2.8 billion delivered to Ukraine's private sector since February 2022, including over $1 billion mobilized under the ERA Program. The Catalyst Fund is IFC's fourth private equity fund investment in Ukraine since the invasion.
Horizon Capital, an existing IFC client, manages over $1.6 billion in assets, with its funds having invested in 191 companies and helped create 18,000 jobs. Lenna Koszarny, Founding Partner and CEO of Horizon Capital, said the fund is the second Ukraine-dedicated fund the firm has launched since the full-scale invasion, bringing its total capital raised for Ukraine to over $1 billion in the past decade. She said the targeted sectors generate more than 10 percent of Ukraine's annual GDP and employ over 650,000 people. Makhtar Diop, Managing Director of IFC, said equity capital is vital to Ukraine's recovery, providing patient capital that helps companies withstand shocks. Other investors in the fund's first close include the EBRD, Proparco (AFD Group), Swedfund, Norfund and FMO.
The fund has a target size of €300 million and will acquire minority stakes in companies across energy, construction and digital infrastructure. IFC has also reserved a €50 million co-investment envelope to invest alongside the fund in select companies. To de-risk the investment, around half of IFC's equity commitment will be covered by guarantees from the European Commission under the Ukraine Investment Framework and the Government of France in support of IFC's ERA Program for Ukraine. The fund also targets at least 25 percent of its portfolio companies being women-owned or women-led.
IFC cites the latest Rapid Damage and Needs Assessment (RDNA) estimating reconstruction needs at about $524 billion over the next decade, with infrastructure accounting for nearly 40 percent of total damage. IFC reports close to $2.8 billion delivered to Ukraine's private sector since February 2022, including over $1 billion mobilized under the ERA Program. The Catalyst Fund is IFC's fourth private equity fund investment in Ukraine since the invasion.
Horizon Capital, an existing IFC client, manages over $1.6 billion in assets, with its funds having invested in 191 companies and helped create 18,000 jobs. Lenna Koszarny, Founding Partner and CEO of Horizon Capital, said the fund is the second Ukraine-dedicated fund the firm has launched since the full-scale invasion, bringing its total capital raised for Ukraine to over $1 billion in the past decade. She said the targeted sectors generate more than 10 percent of Ukraine's annual GDP and employ over 650,000 people. Makhtar Diop, Managing Director of IFC, said equity capital is vital to Ukraine's recovery, providing patient capital that helps companies withstand shocks. Other investors in the fund's first close include the EBRD, Proparco (AFD Group), Swedfund, Norfund and FMO.
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