“This investment will provide much needed growth capital to Ukraine’s SMEs, which will in turn create jobs and spur innovation,” said Jason Pellmar, IFC’s regional head for Ukraine and Belarus, The Financial reported. 

“The project is also well-aligned with our strategy to maximize Ukraine’s private sector-led growth,” he said.

IFC’s equity investment supports the largest Ukraine-focused private equity fund to come to market in the last decade.

Read alsoFT: Ukraine seeks billion dollar investments to fuel fragile economyManaged by Horizon Capital, a leading private equity fund manager led by female CEO Lenna Koszarny, the EEGF III has a target size of about $150 million. It will focus on investments in fast-growing, export-oriented companies in IT, light manufacturing, and agribusiness.

IFC’s investment will help catalyze additional private capital for the region, as well as demonstrate Ukraine’s compelling investment opportunities in export-focused sectors. SMEs are well placed to drive economic growth, thanks to the country’s competitive labor force, large domestic market, and proximity to the European Union. But many struggle to access the long-term financing they need to develop and grow, according to IFC.

Read alsoPoroshenko, European leaders discuss Marshall Plan for UkraineOther investors in the new fund include the European Bank for Reconstruction and Development, the German development bank, the Dutch development bank, and the Western NIS Enterprise Fund, a U.S. government-backed fund.  The fund is expected to invest in 10-15 companies with a transaction size of between $5 million and $20 million per investment.