The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) have jointly committed $50 million to the Rebuild Ukraine Fund, a newly launched private equity investment vehicle designed to support Ukrainian businesses amid the ongoing war and lay the foundation for long-term economic recovery. Managed by Dragon Capital, one of Ukraine’s most experienced investment firms, the fund intends to provide critical equity and quasi-equity financing to small and medium-sized enterprises (SMEs) and mid-cap companies — sectors pivotal to sustaining livelihoods and rebuilding the country’s industrial and economic capacity.
The IFC and EBRD each contributed $25 million (€21.8 million equivalent) as anchor investors, enabling the fund’s first close and sending a powerful signal to global investors that Ukraine’s private sector remains viable, resilient, and worthy of long-term financial support — even under the extreme constraints of war.
A $250 Million Fund to Strengthen Ukraine’s Economic Backbone
The Rebuild Ukraine Fund is targeting a total capital pool of $250 million, which will be strategically deployed across industries essential to Ukraine’s resilience and reconstruction, including:
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Consumer retail and services
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Healthcare and pharmaceutical supply chains
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Financial services and fintech
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Construction materials and infrastructure-related industries
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Agribusiness and food processing
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Technology, logistics, and business services
These sectors are not only central to Ukraine’s wartime economic survival but will also form the cornerstones of a sustainable recovery once security conditions improve.
SMEs account for more than 60% of Ukraine’s employment and play an outsized role in local economic stability. However, traditional bank financing has become severely constrained since the full-scale invasion began in 2022. The Rebuild Ukraine Fund aims to fill this financing gap by offering long-term capital injections, helping companies modernize, maintain operations, expand production, and preserve or create jobs.
Boosting Private Equity to Drive Recovery
Strengthening Ukraine’s private equity ecosystem is a strategic priority for international financial institutions. With banks facing heightened risks and limited credit capacity, private equity investment provides a lifeline for companies needing growth capital but unable to access traditional financing.
By partnering with Dragon Capital — a respected domestic investment manager with a strong track record — IFC and EBRD aim to:
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Enhance investor confidence in Ukraine
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Build local financial market capacity
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Encourage institutional investors to re-enter the Ukrainian market
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Support long-term capital formation
This partnership represents a major vote of confidence in Ukrainian business resilience and managerial competence despite the ongoing conflict.
Strong International Support, Risk Guarantees, and Strategic Partnerships
A portion of IFC’s investment will be backed by guarantees from the European Commission under the Ukraine Investment Framework, and by the Government of France, as part of IFC’s Economic Resilience Action (ERA) Program. These risk-sharing mechanisms are designed to:
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Reduce exposure for investors
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Encourage private capital mobilization
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Support strategic sectors during wartime
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Strengthen Ukraine’s recovery financing architecture
The fund’s blended finance structure demonstrates an innovative model for mobilizing investment into high-risk environments to maintain economic continuity.
Leaders Emphasize the Importance of Private Sector Recovery
At the signing ceremony held during the Rebuild Ukraine Conference in Warsaw, senior leaders from EBRD, IFC, and Dragon Capital emphasized the urgency of supporting Ukrainian businesses during wartime.
Arvid Tuerkner, EBRD Managing Director for Ukraine and Moldova, stated:
“The fund will provide vital capital to SMEs and mid-caps and reinforce the foundations for Ukraine’s economic recovery. Our investment affirms the resilience and potential of Ukrainian businesses.”
Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean, highlighted the need for equity financing:
“Many Ukrainian companies, especially smaller ones, struggle to access equity. IFC’s investment will support crucial sectors such as agriculture, construction, and technology — helping them grow and drive recovery.”
Tomas Fiala, Founder and CEO of Dragon Capital, underscored the symbolism:
“We are proud to partner with EBRD and IFC. Their support sends a strong message of confidence in Ukraine’s private sector. This fund will provide essential capital to help businesses adapt, grow, and lead the country’s reconstruction.”
Dragon Capital: A Key Actor in Ukraine’s Investment Landscape
Founded in 2000, Dragon Capital is one of Ukraine’s most active and experienced investment firms. Its portfolio includes:
The company has over two decades of experience handling large-scale equity investments, making it well-positioned to direct capital into high-potential businesses despite ongoing instability.
The firm’s reputation for operational excellence and deep market knowledge was a major factor in the IFC and EBRD’s decision to select Dragon Capital as the fund manager.
Building the Foundations for Ukraine’s Reconstruction
As the war continues, international support for Ukraine’s economy remains essential. Businesses must survive, adapt, and prepare to scale up in a post-war environment. By delivering long-term capital, the Rebuild Ukraine Fund seeks to:
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Preserve and create jobs
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Sustain critical supply chains
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Encourage innovation and new business models
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Maintain functioning local markets and essential services
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Lay the groundwork for future reconstruction investments
This funding initiative underscores the belief shared by global institutions: a vibrant private sector will be central to rebuilding Ukraine — economically, socially, and structurally.
