- Top Private Equity Firms Ukraine -

Top Private Equity Firms Ukraine: A Comprehensive Guide

Private equity firms are investment firms that pool capital from high-net-worth individuals and institutional investors to acquire equity ownership in companies. These firms typically invest in privately held companies or those that are publicly traded but are looking to go private.

In Ukraine, private equity firms have been gaining popularity in recent years due to the country's favourable investment climate and growing economy.

Ukraine's economy has been on an upward trajectory since 2016, with GDP growth averaging at 3% per year.

This growth has been driven by the country's agricultural sector, IT industry, and manufacturing sector.

As the economy continues to grow, private equity firms have been increasingly investing in Ukrainian companies, providing them with the necessary capital to expand their operations and grow their businesses. In fact, according to a report by UVCA, the Ukrainian Venture Capital and Private Equity Association, private equity firms invested over $1.5 billion in the country between 2014 and 2020.

With the growing interest in private equity investments in Ukraine, it is important to know which firms are leading the way.

In this article, we will take a closer look at some of the top private equity firms operating in Ukraine. We will explore their investment strategies, track records, and the types of companies they typically invest in.

Understanding Private Equity in Ukraine

Private equity firms in Ukraine are investment management companies that provide financial capital to companies that are not publicly traded. These firms invest in businesses that have high growth potential, but may not have access to traditional sources of funding such as banks or public markets. Private equity firms typically invest in established companies that are profitable and have a proven track record.

Private equity in Ukraine has been growing in recent years, with many firms seeing opportunities in the country's developing economy. According to a report by the Ukrainian Venture Capital and Private Equity Association (UVCA), private equity firms in Ukraine invested over $1.5 billion over the past 8 years. Despite the ongoing conflict with Russia, the private equity industry in Ukraine has continued to grow and attract investment.

Private equity firms in Ukraine provide a range of financial services to their clients, including equity financing, debt financing, and restructuring. They work closely with the management teams of the companies they invest in to help them grow and achieve their goals. Private equity firms typically have a long-term investment horizon, with investments lasting between 3 to 7 years.

One of the advantages of private equity firms in Ukraine is that they can provide a significant amount of capital to companies that may not have access to traditional sources of funding. This can be particularly important in a developing economy like Ukraine, where access to capital can be limited. Private equity firms can also provide expertise and resources to help companies grow and expand.

In conclusion, private equity firms in Ukraine play an important role in the country's financial services industry. They provide a range of financial services to their clients, including equity financing, debt financing, and restructuring. Despite the ongoing conflict with Russia, the private equity industry in Ukraine has continued to grow and attract investment. Private equity firms can provide significant capital and resources to companies that may not have access to traditional sources of funding, helping them to grow and expand in a developing economy.

Top Private Equity Firms in Ukraine

Ukraine has a growing private equity industry that is attracting investors from around the world. Here are some of the top private equity firms operating in Ukraine:

1. Horizon Capital

Horizon Capital is a leading private equity firm in Emerging Europe, with over 29 years of experience in the region. The firm has over $1.5 billion in assets under management and is backed by over 40 institutional investors. Horizon Capital is known for its strong team, high integrity and governance, value creation, and track record of successful investments. The firm has invested in a wide range of sectors, including consumer goods, healthcare, and technology.

2. Da Vinci Capital

Da Vinci Capital is a private equity firm that focuses on mid-market, high-growth private equity investments. The firm has offices in London and a strong global network. Da Vinci Capital has been investing out of its third technology fund, which it launched in 2018. The firm has voiced its support for Ukraine on social media and is committed to investing in the country.

3. ICU

ICU is a private equity and investment advisory firm that focuses on the emerging markets of Central and Eastern Europe. The firm has over $500 million in assets under management and has invested in a wide range of sectors, including real estate, healthcare, and energy. ICU is known for its expertise in the Ukrainian market and has a strong track record of successful investments.

4. AVentures Capital

AVentures Capital is a venture capital and private equity firm that focuses on early-stage investments in technology startups. The firm has over $50 million in assets under management and has invested in a wide range of sectors, including fintech, e-commerce, and artificial intelligence. AVentures Capital is known for its expertise in the Ukrainian market and has a strong track record of successful investments.

5. Genesis Investments

Genesis Investments is a private equity firm that focuses on investments in the healthcare sector. The firm has over $100 million in assets under management and has invested in a wide range of healthcare companies in Ukraine. Genesis Investments is known for its expertise in the healthcare sector and its commitment to improving healthcare in Ukraine.

These are just a few of the top private equity firms operating in Ukraine. As the Ukrainian economy continues to grow and develop, the private equity industry is likely to become an increasingly important source of investment capital for businesses in the country.

Key Founders and People in Ukrainian Private Equity

Ukraine's private equity industry has seen significant growth over the past decade, with a number of key founders and people playing a crucial role in shaping the industry. Here are some of the top individuals to know in Ukrainian private equity:

Dmytro Kyselyov

Dmytro Kyselyov is the founder and managing partner of AVentures Capital, a leading Ukrainian venture capital firm. He has over 20 years of experience in the IT industry and has been instrumental in the growth of Ukraine's tech ecosystem. Kyselyov is a member of the Ukrainian Venture Capital and Private Equity Association (UVCA) and is actively involved in promoting investment opportunities in Ukraine.

Oleksandr Kosovan

Oleksandr Kosovan is the founder and CEO of MacPaw, a leading Ukrainian software development company. He is also a founding partner of Genesis Investments, a venture capital firm focused on investing in Ukrainian startups. Kosovan is a well-respected figure in Ukraine's tech community and has been recognized for his contributions to the industry, including being named one of Forbes' 30 Under 30 in Europe.

Volodymyr Kostevych

Volodymyr Kostevych is the founder and managing partner of TA Ventures, a venture capital firm with a focus on early-stage investments in Europe and the US. Kostevych has over 15 years of experience in venture capital and has been involved in a number of successful investments, including Wrike, a project management software company that was acquired by Citrix in 2018. He is also a member of the UVCA and is actively involved in promoting the Ukrainian startup ecosystem.

Yevgen Sysoyev

Yevgen Sysoyev is the managing partner of AVentures Capital and has been with the firm since its inception in 2012. He has over 15 years of experience in venture capital and has been involved in a number of successful investments, including Grammarly, a writing assistant software company that has raised over $200 million in funding. Sysoyev is also a member of the UVCA and is actively involved in promoting investment opportunities in Ukraine.

Andriy Kolodiuk

Andriy Kolodiuk is the founder and managing partner of AVentures Capital and has been involved in the Ukrainian tech industry for over 20 years. He is also a co-founder of the Ukrainian Startup Fund, a government-backed initiative aimed at supporting Ukrainian startups. Kolodiuk is a well-respected figure in Ukraine's tech community and is actively involved in promoting the growth of the industry.

These individuals are just a few of the key founders and people in Ukrainian private equity. With their expertise and experience, they are helping to shape the future of the industry and promote investment opportunities in Ukraine.

Investment and Acquisition Trends

Private equity and venture capital investment in Ukraine has been steadily growing in recent years, with a total of 11 VC deals worth $11.5m in the first quarter of 2022 alone [1]. Despite the ongoing conflict in the region, investors have shown confidence in the country's start-up ecosystem, particularly in the fintech sector [2].

In terms of M&A transactions, the total volume decreased by 9 times from $2.7 billion in 2021 to $0.3 billion in 2022, reflecting the uncertainty caused by the ongoing conflict [1]. However, there is still activity in the market, with a number of deals worth more than $1 million taking place [1].

Funding rounds have also been a key area of investment in Ukraine, with software companies leading the way in terms of deal volume and value [3]. The average transaction check for Ukrainian investors grew by 78% to $5.7m in 2019, with a total of 29 exits taking place [4].

Despite the challenges posed by the conflict, private equity and venture capital firms continue to see potential for growth in Ukraine, with a number of IPOs and successful exits taking place in recent years [2]. Overall, the investment and acquisition trends in Ukraine's private equity and venture capital market remain positive, with investors showing confidence in the country's start-up ecosystem and potential for growth.

[1] InVenture. "Private equity, VC and M&A market in Ukraine 2022: Expecting the end of the war." https://inventure.com.ua/en/analytics/investments/private-equity-vc-and-manda-market-in-ukraine-2022:-expecting-the-end-of-the-war

[2] Private Equity News. "Private equity in Ukraine: 'The industry keeps rolling'." https://www.penews.com/articles/private-equity-in-ukraine-the-industry-keeps-rolling-20220519

[3] Crunchbase. "List of top Private Ukraine Companies." https://www.crunchbase.com/hub/private-ukraine-companies

[4] Deloitte. "Ukrainian Venture Capital and Private Equity Overview." https://www2.deloitte.com/ua/en/pages/press-room/press-release/2020/investments-into-startups-2019.html

Sector Specific Investments

Private equity firms in Ukraine have been investing in various sectors, including IT, venture capital, retail, energy, and TMT. These sectors have shown significant growth potential in recent years, and private equity firms have been keen to invest in them.

The IT sector in Ukraine has been growing rapidly, with many start-ups emerging in recent years. Private equity firms have been investing in these start-ups, providing them with the necessary funding to grow and expand. The venture capital sector has also been growing, with many firms investing in start-ups and early-stage companies.

The retail sector in Ukraine has also been showing growth potential, with retail trade growing 6.8 percent in 2018 and speeding up to 7.2 percent in February 2023. Private equity firms have been investing in retail companies, providing them with the necessary capital to expand and improve their operations.

The energy sector in Ukraine has also been attracting private equity investments, with many firms investing in renewable energy projects. Ukraine has set a target of generating 25 percent of its energy from renewable sources by 2035, and private equity firms have been keen to invest in this sector to help Ukraine achieve its target.

Finally, the TMT sector in Ukraine has also been growing, with many firms investing in technology start-ups and companies. Private equity firms have been investing in these companies, providing them with the necessary funding to develop innovative products and services.

Overall, private equity firms in Ukraine have been investing in various sectors, providing companies with the necessary funding to grow and expand. The growth potential of these sectors has attracted private equity firms, and they have been keen to invest in them to achieve their investment goals.

Role of Data and Algorithms in Private Equity

Private equity firms in Ukraine are increasingly relying on data and algorithms to make informed investment decisions. In today's fast-paced business environment, data-driven insights are critical to identifying investment opportunities, assessing risks, and maximizing returns.

Private equity firms are leveraging data hubs to collect, store, and analyze large volumes of data from multiple sources. These data hubs enable firms to quickly access and analyze data, providing them with a competitive advantage in the market. By using algorithmic rank and crunchbase ranks, firms can evaluate potential investments based on a range of factors, including financial performance, growth potential, and market trends.

Data analysis is also playing a crucial role in the due diligence process. Private equity firms are using advanced analytics to evaluate the financial health of target companies, identify potential risks, and uncover hidden opportunities. By analyzing financial statements, market trends, and other data points, firms can make more informed investment decisions and reduce the risk of costly mistakes.

In addition to traditional financial analysis, private equity firms are also using data and algorithms to assess non-financial factors, such as the quality of a company's management team, its culture, and its reputation. By combining quantitative and qualitative data, firms can gain a more complete picture of a potential investment and make more informed decisions.

Overall, the role of data and algorithms in private equity is becoming increasingly important in Ukraine. By leveraging data hubs, algorithmic rank, crunchbase ranks, and advanced analytics, firms can gain a competitive advantage in the market and make more informed investment decisions.

Events and Compliance in Ukrainian Private Equity

Private equity firms in Ukraine strive to stay compliant with local regulations and corporate governance standards. Several events take place throughout the year to discuss compliance and corporate governance in the private equity industry.

One such event is the annual Ukrainian Venture Capital and Private Equity Conference, organized by the Ukrainian Venture Capital and Private Equity Association (UVCA). The conference brings together private equity firms, venture capitalists, and policymakers to discuss investment opportunities and the local investment and business climate. The latest conference took place in Kyiv in November 2022 and attracted over 200 attendees from 15 countries. The event was ranked #3 in CB Insights' top venture capital and private equity conferences of 2022.

Another notable event is the Corporate Governance Forum, organized by the Ukrainian Corporate Governance Network. The forum aims to promote good corporate governance practices in Ukraine and provides a platform for discussion and networking. The latest forum took place in Lviv in September 2022 and attracted over 150 attendees.

Private equity firms in Ukraine also adhere to compliance regulations, including those related to anti-corruption and anti-money laundering. The National Bank of Ukraine and the National Securities and Stock Market Commission regulate compliance in the financial sector. Private equity firms also follow the guidelines set by the Organisation for Economic Co-operation and Development (OECD) and the International Finance Corporation (IFC) on corporate governance and responsible investment.

In conclusion, private equity firms in Ukraine prioritize compliance and corporate governance and participate in various events to stay up-to-date on industry developments and regulations.

Impact of Private Equity on Non-Profit and For-Profit Companies

Private equity firms are increasingly investing in social impact, including non-profit and for-profit companies. According to David Hutchison, former head of UK investment banking at Dresdner Kleinwort and chief executive of Social Finance, a non-profit set up to improve third sector access to private investment, private equity firms are attracted to investing in companies that have a social mission and deliver measurable impact.

Private equity firms are known for their ability to provide capital and operational expertise to help companies grow. This is especially important for non-profit companies that often struggle with funding and resources. Private equity firms can also help non-profit companies become more efficient and effective in delivering their social mission.

For-profit companies can also benefit from private equity investment. Private equity firms can provide the capital needed to fund growth and expansion, as well as the operational expertise to help companies improve their operations and increase profitability.

Private equity firms come in different types, including venture capitalists, growth equity firms, and buyout firms. Venture capitalists typically invest in early-stage companies with high growth potential, while growth equity firms invest in more established companies that are looking to grow. Buyout firms, on the other hand, invest in mature companies that are looking to be acquired or go public.

Private equity firms can have a significant impact on the companies they invest in, including non-profit and for-profit companies. They can provide the capital and expertise needed to help these companies grow and become more effective in delivering their social mission or increasing profitability.

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