The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the International Finance Corporation (IFC) have committed to invest a total of EUR 150 million ($178 million) to Amber Dragon Ukraine Infrastructure Fund I (ADUIF) — the first-ever specialised infrastructure equity fund investing in Ukraine.
On the margins of the World Economic Forum in Davos, the fund has also received commitments from Swedfund and Impact Fund Denmark, bringing the total to around EUR 200 million at first close, and exceeding half of its EUR 350 million target.
"The critical infrastructure projects supported by the Fund are expected to help stabilise emergency energy supply, strengthen digital infrastructure and services, and ease bottlenecks in transport and logistics. The Fund will also support Ukraine's recovery by modernising essential infrastructure that is central to reconstruction and job creation," said ADUIF's managing partners — Amber Infrastructure and Dragon Capital.
The strong level of commitments at first close underscores investor confidence in ADUIF's strategy and in the long-term potential of Ukraine's infrastructure sector, according to the two.
'Very hands-on' teams
The fund is expected to expand access to equity capital for investments in renewable energy, transport, and digital infrastructure — sectors critical to Ukraine's reconstruction.
"We are very hands-on, both of our teams. We take only majority stakes and provide a lot of value added to investee companies, and more than 70% of the projects are greenfield," Dragon Capital founder Tomáš Fiala said when announcing ADUF's first close in Davos.
Fiala also said that Dragon Capital is not only starting to invest now. Over the past 12 months, the company has been investing from its own balance sheet and already holds three projects for the fund at cost. To date, Fiala stated, Dragon Capital has invested nearly EUR 40 million in these projects, including an energy generation asset, an industrial park, and an intermodal terminal.
Founded in 2000, Dragon Capital has nearly 30 years of experience in fund management and investment across Ukraine’s leading manufacturers, service providers, and landmark residential and commercial real estate projects. It is among the most active independent private investment management and investment banking firms operating in Ukraine.
Amber Infrastructure, part of Boyd Watterson Global Asset Management Group LLC, is a specialist international investment manager focused on investment, asset management, and fund management. It manages or advises nine funds and managed accounts with about £5 billion in funds under management.
