EBRD and IFC co-invest in Dragon Capital’s Rebuild Ukraine Fund

• $50 million joint commitment to new private equity fund will boost access to alternative sources of growth funding for Ukrainian SMEs and mid-cap businesses
• ·         EBRD and IFC commit $25 million each to Dragon Capital’s Rebuild Ukraine Fund
• ·         Fund to make equity and quasi equity investments in small and medium-sized enterprises (SMEs) and mid-cap companies in Ukraine
• ·         Investment contributes to growth of Ukraine’s nascent private equity ecosystem and supports businesses vital for Ukraine’s economic resilience  

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), a member of the World Bank Group, have jointly committed $50 million to the Rebuild Ukraine Fund, a new private equity fund managed by Dragon Capital. The fund will provide long-term equity and quasi-equity financing for Ukrainian small and medium-sized enterprises (SMEs) and mid-caps, helping them to grow despite the challenges caused by Russia’s full-scale invasion of Ukraine and to contribute to the country’s future reconstruction.

The EBRD and IFC’s anchor investments of $25 million each (€21.8 million equivalent) will help the fund to achieve a viable first close, and will additionally send a strong signal to the market highlighting the importance of investing in the country.

The Fund aims to deploy $250 million of total capital, targeting companies across a range of sectors critical to Ukraine’s resilience and recovery. These include, but are not limited to, consumer retail and services, healthcare, financial services, construction materials, and agri-related sectors.

SMEs remain the backbone of Ukraine’s economy and key to job creation, and increasing their access to diverse sources of finance is essential to their continuous growth. As bank financing continues to be limited in the war environment, developing a robust private equity industry that can provide alternative sources of growth capital is key.

By supporting the continued development of one of Ukraine’s most established domestic fund managers, the EBRD and IFC are playing a key role in strengthening the private equity asset class in Ukraine.

Signing the agreement at the Rebuild Ukraine conference in Warsaw, EBRD Managing Director for Ukraine and Moldova, Arvid Tuerkner, said: “We are proud to partner with Dragon Capital and back its new fund. It will not only provide vital capital to SMEs and mid-caps, but also reinforce the foundations for Ukraine’s economic recovery and future growth. We hope our investment will be a testament to the resilience and potential of Ukrainian businesses, and attract more institutional investors to Ukraine.”

Alfonso García Mora, IFC’s Vice President for Europe, Latin America, and the Caribbean, said: “Many Ukrainian companies, especially smaller ones, struggle to access equity financing. With support from the EU and France, IFC’s investment in Dragon Capital’s Rebuild Ukraine Fund will boost key sectors like agriculture, construction, and technology—helping businesses grow, create jobs, and drive Ukraine’s recovery.”

To mitigate investment risks, a portion of IFC’s equity investment will be covered by guarantees provided by the European Commission under the Ukraine Investment Framework and the government of France in support of IFC’s Economic Resilience Action (ERA) Program for Ukraine.

Tomas Fiala, Founder of Dragon Capital, said: “We are proud to partner with EBRD and IFC — two leading international financial institutions with a long-term commitment to Ukraine. Their support of the Rebuild Ukraine Fund sends a strong signal of confidence in the country’s private sector and its future. The Fund will provide much-needed capital to help Ukrainian businesses adapt, grow and lead the recovery process”.

About Dragon Capital

Dragon Capital is one of the most active independent private investment management and investment banking firms operating in Ukraine. It is an existing EBRD client.  Founded in 2000, Dragon Capital has over 20 years of experience in managing funds and investing in Ukraine’s leading manufacturers of goods and service providers, as well as in landmark residential and commercial real estate projects.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

About the EBRD

The EBRD is Ukraine’s largest institutional investor. It has stepped up its investments in the country since Russia’s full-scale invasion, having made more than €8.5 billion available to Ukraine’s real economy.