Proparco has announced its investment as an anchor investor at the first close of the Horizon Capital Catalyst Fund, a reconstruction-focused equity vehicle launched by Horizon Capital, a leading private equity firm operating in Ukraine and Moldova. In just six months since fundraising began at the Ukraine Recovery Conference in Rome last July, the Fund has already secured more than 50% of its €300 million target, underscoring strong investor confidence in Ukraine’s recovery despite an ongoing and challenging context.
Proparco’s participation alongside other international and European development finance institutions is intended to catalyse private capital into sectors that are critical to Ukraine’s economic resilience and long-term growth. The Catalyst Fund was established to address the acute shortage of equity capital in the country, with a strategic focus on priority sectors such as renewable energy, digital infrastructure, construction, and other asset-heavy, labour- and capital-intensive industries that are essential to reconstruction.
Building on Horizon Capital’s long-standing strategy of supporting entrepreneurs and fast-growing companies, the Catalyst Fund significantly expands the firm’s investment scope beyond technology and export-oriented businesses. It enables investment in greenfield projects and companies operating at the core of Ukraine’s reconstruction efforts. Through the deployment of catalytic equity, the Fund aims to increase the pipeline of bankable projects, accelerate capital mobilisation, and unlock additional debt financing into sectors that will underpin the country’s recovery.
Commenting on the investment, Proparco’s Chief Executive Officer, Françoise Lombard, highlighted the importance of catalytic equity in the current context. She noted that Proparco is proud to commit as an anchor investor in the Horizon Capital Catalyst Fund, building on a long-standing partnership with Horizon Capital. By supporting the Fund at first close, Proparco is backing Ukraine’s strategic sectors, particularly infrastructure and renewable energy, and helping lay the foundations for a more resilient and prosperous future through the mobilisation of private capital.
For Horizon Capital, the launch of the Catalyst Fund marks a significant milestone during the firm’s twentieth anniversary year. According to Lenna Koszarny, Founding Partner and CEO of Horizon Capital, it is the second Ukraine-dedicated fund launched since the full-scale invasion and brings the firm’s total capital raised for Ukraine over the past decade to more than $1 billion. She emphasised that the Fund enables investment in high-impact, labour- and capital-intensive sectors that account for over 10% of Ukraine’s annual GDP and employ more than 650,000 people, at a time when equity capital remains scarce. She also expressed gratitude to investors for supporting an asset-heavy, domestically focused fund in record time, allowing capital to be deployed in Ukraine without delay.
The investment is closely aligned with Proparco’s mandate to build resilient economies, promote gender equality, and support climate action. The Catalyst Fund is expected to contribute directly to several Sustainable Development Goals, including SDG 5 on gender equality, SDG 7 on affordable and clean energy, SDG 8 on decent work and economic growth, SDG 9 on industry, innovation and infrastructure, and SDG 13 on climate action. Through its investments, the Fund will support job creation, encourage the adoption of best-in-class ESG standards in a post-war context, attract European Union funding, and facilitate market entry for long-term investors.
Gender equality is a central pillar of Horizon Capital’s investment approach. Across its existing portfolio, women account for 49% of employees, and the firm has twice received the 2X Challenge Flagship Fund designation. The Catalyst Fund is working towards full 2X Challenge certification, reinforcing its commitment to advancing women’s economic participation as part of Ukraine’s reconstruction and long-term development.
