Rebuild Ukraine Fund
BIO has invested USD 5M in equity in Rebuild Ukraine Fund, a private equity fund launched by Dragon Capital, providing long term financing to resilient companies that may have suffered from the war context.
Amount
$ 5,000,000.00
Type of investment
Equity
Development impacts
- Local economic growth
- Private sector consolidation/innovation
Beneficiary locations
Investment field
Investment Companies & Funds
Activity
Organisation
Rebuild Ukraine Fund
Domicile
The Rebuild Ukraine Fund is the 3rd private equity fund launched by , Dragon Capital (hereafter “the Manager” or “DC”) and will have a target size of USD 250 M to be fully committed in Ukraine. The Fund will be providing long term financing to resilient companies with strong fundamentals that may have suffered from the war context and which are seeking growth or recovery capital. Ideal targets are profitable or near-profitable companies with strong leadership, high entry barriers, transparent finances, and clear exit options, showing value creation opportunities with manageable war risk. REBUF will benefit from a sector-agnostic mandate, but will favour consumer goods and services, pharma, healthcare, financial, agri-related, construction materials, retail and tech.
This will be BIO’s first time working with Dragon Capital, a well-experienced and reputed Ukrainian investment platform, active in the market for the past 20 years.
Development impacts
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Local economic growth
Offering long-term financing to primarily SMEs in an underserved market with limited access to equity, helping them overcome war related challenges and expand their operations. REBUF is a sector agnostic fund, with an advanced pipeline that includes scaling a mineral water producer, a medical lab chain, and a private health care chain offering affordable preventive and diagnostic services.
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Private sector consolidation/innovation
Bolstering the country's resilience by supplying scarce capital to the Ukrainian market, while fostering private growth and durable sustainability. Access to long-term financing is constrained due to perceived political, economic, and war-related risks, leaving many SMEs without the patient capital they need for growth, innovation, and recovery.
E&S review
The fund and its investors agreed on an ambitious action plan that aimed at enhancing the fund’s E&S policy, develop its ESMS with the support of an external consultant, covering also IHL and Human Rights assessment, provide training to the E&S and investment teams, review the grievance mechanisms for both external and internal stakeholders, upgrade the fund’s HR policies, conduct a gender pay gap assessment and develop a strategy for climate risks.
Environmental and Social (E&S) classification of the project: B+