Private Equity

Dragon Capital has been making private equity investments since 2001. Our Principal Investments enjoy leadership across diverse sectors including retail, food processing, machine building and real estate. Most of our transactions were structured as co-investment deals with our clients, with Dragon Capital as the lead investor. 

Dragon Capital New Ukraine Fund launched in November 2015 was anchored by Dragon Capital and a private investment fund managed by Soros Fund Management LLC. The new fund will invest in a wide range of sectors of the Ukrainian economy and provide businesses with capital and managerial support to enhance performance and upgrade technologies to support long-term growth.

Dragon Capital has successful track record of investments in Ukrainian real estate market which comprises 18 years of experience in development, construction and management of large-scale residential, office, retail and logistics projects. 

In 2010, banking on a decade-long successful track record, Dragon Capital launched the Europe Virgin Fund, its first institutional private equity fund. The Europe Virgin Fund, with commitments from Dragon Capital, the European Bank for Reconstruction and Development, the Swiss Investment Fund for Emerging Markets and other limited partners, is the only private equity fund in Ukraine that has been raised since the 2008 financial crisis.

 

Dragon Capital New Ukraine Fund

Dragon Capital New Ukraine Fund (DCNUF) is a private equity fund launched jointly by Dragon Capital and Ukrainian Redevelopment Fund (URF) in November 2015.

Dragon Capital New Ukraine Fund is aimed to invest in a wide range of sectors of the Ukrainian economy and provide businesses with capital and managerial support to enhance performance and upgrade technologies to sustain long-term growth. Dragon Capital has a successful 18-year track record of private equity investments in Ukraine. The fund will capitalize on Dragon Capital’s management resources and local expertise.

Ukrainian Redevelopment Fund, LP is a private investment vehicle that focuses on special situations and private equity investments in Ukraine and companies with significant operations in Ukraine. The principal investment adviser to URF is Soros Fund Management LLC, a private investment advisor to a number of private investment funds that are managed exclusively for Soros family clients.

Principal Investments

Dragon Capital has been an active private equity investor generally aiming to acquire controlling stakes in dynamic private enterprises either through purchase of shares from existing shareholders or growth-financing transactions. Our portfolio companies enjoy leadership across diverse sectors:

  • KMZ Industries, one of the largest producers of agricultural equipment in the CIS
  • Chumak, one of the country’s foremost branded foods producers and a household name in ketchups and sauces.

KMZ Industries (KMZ) is Ukraine’s leading agricultural machine-building company, providing turn-key solutions for the grain storage and handling industry. KMZ has 150 years of experience in the agricultural and farming equipment market. The plant was founded in 1860 by Grand Duchess Yekaterina Pavlovna, sister of Russian Emperor Alexander II. During the last 45 years, KMZ has been engaged in production of grain storage, drying, cleaning and transportation equipment. The total number of clients served by KMZ exceeds 5,000, with customers from Ukraine, Russia, Belarus, Moldova, Kazakhstan, Poland, the Baltic States and the Middle East. Dragon Capital has been investing in KMZ since 2001, accomplishing a complex restructuring of the business from a Soviet-type factory into a modern, client-oriented and innovative company. The business has grown the business 20-fold in less than a decade.
www.kmz.pl.ua

Chumak is one of Ukraine’s most recognized branded food producers, manufacturing ketchups, mayonnaise, tomato paste, canned vegetables and pasta. Chumak is one of the largest tomato processors in the CIS with an annual processing capacity of up to 100,000 tonnes, and the company recently launched a new pasta production factory with an annual capacity of 20,000 tonnes. Chumak’s national distribution currently serves more than 65,000 sales points in Ukraine and is quickly expanding in CIS and other regions. Chumak has become the number one ketchup brand in the Baltic States, Belarus and Moldova. Dragon Capital, together with East Capital, bought a controlling stake in the company in 2008.
www.chumak.com.ua

Real Estate

Dragon Capital has successful track record of investments in Ukrainian real estate market which comprises 18 years of experience in development, construction and management of large-scale residential, office, retail and logistics projects.

Since 2015, Dragon Capital has been active in acquisitions in the commercial real estate sector with an investment focus on the high-quality operating properties.

Currently Dragon Capital has over 250,000 square meters of warehouses and 150,000 square meters of retail and office space under management which makes Dragon Capital one of the largest real estate investors in Ukraine with diverse asset base and geographical reach.

Europe Virgin Fund

The Europe Virgin Fund is a regional private equity fund sponsored by Dragon Capital, with $57 million of committed capital from Dragon Capital, the European Bank for Reconstruction and Development, the Swiss Investment Fund for Emerging Markets, the Black Sea Trade and Development Bank and other limited partners. The Fund provides equity financing to selected private sector businesses with primary operations in Ukraine, Belarus and Moldova, in particular, in fast-moving consumer goods, retail, industrial, telecom, media, technology, pharmaceuticals, construction materials and financial services sectors. In 2015 the Fund was fully invested.