BAKU, Azerbaijan, January 20. The International Finance Corporation (IFC) announced a new €50 million equity investment in the Horizon Capital Catalyst Fund to support the reconstruction of Ukraine’s critical infrastructure, Trend reports.
The investment targets the energy, construction, and digital networks sectors, aiming to restore essential services, boost economic activity, and create jobs amid constrained public resources.
The Horizon Capital Catalyst Fund is one of the first private equity platforms dedicated to Ukraine’s infrastructure recovery. IFC’s investment is paired with a €50 million co-investment envelope and is partially covered by guarantees from the European Commission and the French government to help de-risk the market and attract additional private capital.
“This fund is a milestone for Ukraine’s recovery, enabling investment in high-impact, labor- and capital-intensive sectors that account for over 10% of the country’s GDP,” said Lenna Koszarny, CEO of Horizon Capital. Makhtar Diop, IFC Managing Director, added, “Equity capital is vital to Ukraine’s recovery. IFC’s investment helps absorb risk, catalyze private investment, and restore the infrastructure businesses and communities rely on.”
The fund targets minority stakes in companies across energy, construction, and digital infrastructure, with at least 25% of portfolio companies led or owned by women. Other investors participating in the first close include EBRD, Proparco, Swedfund, Norfund, and FMO.
The initiative comes as Ukraine faces urgent reconstruction needs totaling $524 billion over the next decade, with nearly 40% of infrastructure damage concentrated in energy, housing, transport, and digital networks. IFC has committed nearly $2.8 billion to support Ukraine’s private sector since February 2022, including over $1 billion mobilized under its Economic Resilience Action (ERA) Program.
By combining equity investment with co-investment and guarantees, IFC aims to crowd in global capital, strengthen private-sector-led recovery, and support sustainable reconstruction of the systems Ukrainians rely on daily.