Horizon closes second Eastern Europe fund on $390m

The Ukrainian firm’s latest investors include Alpha Associates and the IFC.

Horizon Capital’s Emerging Europe Growth Fund II has exceeded its $300 million target, closing with $390 million in committed capital after nine months of marketing.

EEFG II raised $268 million since its first close on $122 million in February. UK-based Somerset Capital is placing the fund.

The interest shown in EEGF II by both North American and European investors exceeded original expectations, Natalie Jaresko, Horizon Capital co-managing partner, said in a statement. She added that this is the first time many of the institutional investors have invested in Eastern Europe.

Returning investors include US Episcopal pension The Church Pension Fund, Finnish fund of funds Amanda Capital, insurance and invesment firm CV Starr and Netherlands-based bank FMO.

New limited partners include Industriens Pension, a Danish financial supervisory; Alpha Associates, a Swiss fund of funds; the University of Texas Investment Company and the International Finance Corporation.

“Taking into account that the regional market is considerably under-penetrated in many spheres, we are bullish about EEGF II’s prospects,” returning LP Jyrki Orpana, director of Amanda Capital, said in a statement

EEFG II will target investments of between $15 million and $40 million in expansion and buyout opportunities in the Ukraine, Moldova and Belarus. Its sectors of interest include consumer goods and services, financial institutions and industrial goods.

Horizon is currently managing two other funds: the Emerging Europe Growth Fund which has recently invested in Ukrainian supermarket chain Fresh, and the Western NIS Enterprise Fund which has primarily invested in financial institutions such as Moldova’s FinComBank.